Question

1. Give an example of how the capital expenditures budget affects other operating budgets.
2. What information, if any, will be shown on the budgeted income statement, from the following: sales budget, cash budget, and cost of goods sold budget?
3. What information, if any, will be shown on the budgeted balance sheet, from the following: sales budget, cash budget, and cost of goods sold budget?
4. Place the following budgets in their proper order of preparing the master budget: Cost of goods sold budget, production budget, direct materials purchases budget, selling and administrative expenses budget, direct labor cost budget, budgeted income statement, sales budget, and factory overhead cost budget.

PLEASE JUST ANSWER 2 OF your choice.

Answer 1

1.What information, if any, will be shown on the budgeted income statement, from the following: sales budget, cash budget, and cost of goods sold budget?

From Sales budget, total sales amount for the period will be shown on budgeted income statement under sales revenue,
From Cash budget, expenses paid in cash will be shown in budgeted income statement alongwith other non cash expenses
From Cost of Goods Sold budget, total amount of cost of goods sold will be shown on budgeted income statement

2. What information, if any, will be shown on the budgeted balance sheet, from the following: sales budget, cash budget, and cost of goods sold budget?
From sales budget and cost of goods sold budget, nothing will be shown on budgeted balance sheet.
From cash budget, ending cash balance for the period will be shown on budgeted balance sheet under current assets.