Master Budget and Financial Planning Guide
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ScribdTranslationsMaster Budget and Financial Planning Guide
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ScribdTranslationsWork assignment
(Measurement activity or task)
Subject
Budgets
1. The cash budget refers to: (1 pt)
It is an estimate of future cash income and expenses, it is a
valuable instrument for financial planning.
b. It allows the financial management to anticipate the needs for direct materials, labor
direct work that the company needs in the short term.
c. Its components are: Revenues, expenses, projected working capital, stock of
inventories and final cash balance.
d. Summary of the planned activities of all the units of the organization,
reflected in the business objectives.
The formula to obtain the Purchase Budget is: (1pt)
It is the sales budget plus the desired ending inventory, minus the initial inventory.
b. It is the desired final inventory plus the cost of goods sold, minus the value of
initial inventory.
c. Sales minus Purchases plus inventory
d. It is the desired ending inventory minus the cost of goods sold, plus the value of
initial inventory.
Cash purchases, credit purchases, payment of taxes and other duties are recorded.
salaries and wages; in the: (1pts)
Master Budget
b. Revenue Budget
c. Operating Budget
d. Budget of Expenditures
4. Answer clearly: What do you understand by Master Budget? Indicate your
elements, importance and starting point. Explain (3pts)
The master budget is the document that brings together all the budgets of the company, it is
the climax for all financial planning processes of it.
A master budget is also an element of analysis and planning that is expressed
in simple economic units to determine the development of a productive activity of
span over a certain period of time. As such, the master budget
find made up of the specific budgets for each sector or department of the
company
Financial Budget
Cash budget
Projected balance sheet
Operating budget
Sales budget
Production budget
Inventory budget
Purchase budget
Budget for cost of goods sold
Operating expense budget
Budgeted income and loss statement
5. Correctly match the following terms with their respective definitions:
(2pts).
a. Financial Budget
b. The preparation of the projected financial statements.
c. The Budget Control.
d. The Sales Budget.
b It allows analyzing the effect of decisions regarding the future position
financial and profitability of the company.
a Consider information about how a company will acquire cash in the
future and how it will be spent.
c It represents the cornerstone of the set of budgets or process.
budgetary.
d Comparison of the actual data of income, costs, and recorded expenses;
regarding the estimates corresponding to a given period.
6. Correctly match the following terms with their respective definitions:
(2pts).
a. Principles of budget control
b. Deviation in budget control.
c. Causes of the deviations.
d. Analysis of deviations.
d Explain the reasons why the actual profit differs from the budgeted one or
forecasted.
a Of recognition, of exceptions, of the rules, of cost awareness.
b The actual consumption to produce a unit of product can be greater or less.
than the budgeted.
c Difference that arises between the budgeted amount and the amount that
it ultimately results in execution.
7. Solve the following practical case. (10 Pts)
The commercial company 'Yunique S.A.C' is engaged in the wholesale marketing of perfumes.
for ladies and wants to open a new store in a modern shopping center and the manager
The general has requested you (financial manager) to prepare the general budget for the
first two months of the year 2022. The balance sheet as of 12.31.21 expressed in new soles is
how it continues:
INFORMATION FOR THE PREPARATION OF THE MASTER BUDGET:
1. SALES VOLUME: The projected sales volume for the two-month period of the year 2022
it goes as follows:
DETAIL JANUARY FEBRUARY
Perfumes (unit) 1100 1,300
Sales value (unit) S/. 380.00 $450.00
2. PRICES: The unit cost of acquiring the products will remain unchanged in
relationship with the inventory as of 12.31.21 and it is expected to remain the same during the period
to project.
3. STOCK POLICY: For the product, 20% must be maintained at the end of each month.
sales volume.
4. OPERATING EXPENSES: The administration and sales expenses are estimated for each month, to
The following details the items of the various operating expenses:
DETAIL IMPORT
Salaries and other labor burdens S/. 20,000.00
CTS $6,500.00
Depreciation 20% annual - Computer Equipment
10% annual - Furniture and Furnishings
Sales Expenses 5% of sales (commissions)
Other administrative expenses S/. 24,500.00
Other administrative expenses are the only operating expenses subject to 18% VAT.
5. TRADE POLICY: Sales will be charged 80% in cash and the balance in 30 days.
Purchases of goods will be paid 65% in cash and the balance in 60 days.
6. CASH FLOW: To prepare this budget, additionally consider what has already been stated.
previously the following:
In January, the pending installments as of December 31 will be collected at 20%.
b. In January, 65% of the commercial notes payable as of December 31 will be paid, and in a
100% of the VAT pending as of 31.12.21.
On January 1st, Furniture and fixtures will be sold for a cost of S/. 2,000.00 and whose
Accumulated depreciation was S/.300.00, the asset was sold for S/. 2,400.00 plus VAT.
In February, cash dividends of S/. 40,000.00 will be declared and paid.
corresponding to the profits of the previous year (2021).
e. All disbursable operating expenses (except for CTS) will be settled in their
integrity in the corresponding month.
In the month of February, 70% of the long-term debt will be paid. Consider
additionally S/. 1,000.00 for interest.
On 01.02.22, the cash purchase of 5 computer equipment will be made, for a value
a total of S/. 20,000.00 plus VAT
h. The CTS will be paid within the first 15 days of the following month, including S/.
6,500.00 as of 31.12.20
i. The cancellation of all IGV settlements and advance payments will be made.
income tax (2% of the sales value) in the months that correspond. TO HAVE IN
THE VAT IS 18%
IT IS REQUESTED:
For the period of January and February 2021 the following:
Sales Budget
2. Income Budget
COMMERCIAL POLICY: Sales will be charged 80% in cash and the balance in 30 days.
CASH FLOW: In January, the pending letters as of December 31 will be collected at a rate of 20%
On January 1st, furniture and furnishings will be sold at a cost of S/. 2,000.00 and whose
accumulated depreciation was S/.300.00, the asset was sold for S/.2,400.00 plus VAT
3. Stock budget
STOCK POLICY: For the product, 20% must be maintained at the end of each month.
sales volume
4. Purchase Budget
5. Expenditure budget
COMMERCIAL POLICY: Sales will be charged 80% in cash and the balance within 30 days.
Purchases of merchandise will be paid 65% in cash and the balance in 60 days.
6. Operating Expense Budget
6.1 Determine the operating expenses
On 01.02.22, the cash purchase of 5 computer equipment will be made, for a total value of
S/. 20,000.00 plus VAT
On January 1st, furniture and fixtures will be sold, which cost S/. 2,000.00 and which
Accumulated depreciation was S/.300.00, the asset was sold for S/.2,400.00 plus VAT.
6.2 Budgets and Administrative Expenses
In February, cash dividends amounting to S/. 40,000.00 will be declared and paid.
corresponding to the profits of the previous year (2021).
In the month of February, 70% of the long-term debt will be paid. Additionally consider
S/. 1,000.00 for interest.
On 01.02.22, a cash purchase of 5 computer equipment will be made, for a total value of
S/. 20,000.00 plus VAT