Master Budget
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Title: Master Budget

Essay Details:

Subject: Business
Author: Lynell K
Date: January 8, 2012
Grade: A
Length: 2 / 495

Essay text:

A $12,500 monthly gross margin is the result, which is an inadequate amount to meet even the monthly salary and wage bill which is $15,000. In essence the bank loan is to make good the losses incurred in November and December of 2004 and meet the expenses for these two months. Because 60% sales are cash and 100% purchases are on credit the shortage has been felt only in January 2005. What operating sources provide the cash for repayment? There are two sources for the repayment of the loan and simultaneous creation of a healthy cash balance. One is the liquidation of the inventory resulting from the implementation of JIT deliveries...

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