25 Aug rizah Morris125 wordsThe budget that I selected from the vid

rizah Morris125 wordsThe budget that I selected from the video is the master budget. I think the master budget is important because the master budget is the culmination of all of the other types of budgets that a company uses to budget their finances in all financial areas. The master budget also includes financial statements, cash forecasts, and financial plans. Businesses usually review master budgets every year broken down by every month or every quarter. A master budget may have a written explanation on the company’s future plans and a blueprint of the strategies the company may use to accomplish their goals. A business can use a master budget to improve performance by management being able to direct the company’s activities by using the master budget as a planning tool to gauge how well employees are meeting or surpassing performance standards. The budgets included in the master budget are the labor budget, the materials budget, finished goods budget, manufacturing budget, production budget, sales budget, selling budget, administrative budget, marketing budget, and advertising budget. Upper management controls the allocation of funds after they review and modify the master budget.The company I selected is G.E.M.S. (Getting Every Mother Situated). G.E.M.S. is a 501 (c) 3 non profit organization that I have owned and operated since 2007. Past business transactions have impacted the preparation of the company’s monthly statements. For example, the decrease in donations which made us able to help less people with food and housing. This impacted the company’s monthly statements because less rents were paid and our budget reflected a downturn in the number of clients assisted. In turn, this impacted our quarterly statements that showed less clients, less services rendered, and a decrease in staff. Lastly, our annual budget was affected because we ran out of funds early in the year which made our clientele, services, and staff number go down which made us receive less funding the following year because our numbers were low.Lakisha DeLaGarzarespondin 125 wordsHi Instructor,After watching the video I decided to discuss the cash budget. Cash budget helps identify the sources, how it will be used, and prepares for possible needs of cash borrowing before it is needed or even when there is excess (University of Phoenix, n.d.). Companies also make sales forecasts as a way to show “potential sales for the industry and the company’s expected share of such sales” (Kimmel, Weygandt, & Kieso, 2016, p. 1017). The cash budget is a way that a company can prepare for financial difficulties and excess of revenue. In times like this where businesses are closed for expended periods of time having a cash budget and being in excess will help even losses. Losing too much sales could cause a company to go bankrupt. However, to avoid this problem managers keep an close eye on sales and work on ways on how to reevaluate the projected budget, promote sales, and minimize expenses. For example, the company I work for is a medical bookstore. We sell books, apparel, snacks, and medical equipment. As the manager I help create the monthly budgets that all go into the total amount for the year. Monthly there is a sales forecast that is populated that shows everything that was sold the year before, the quantity sold, and the amount of those items currently in stock. My role is to make the best choice and order according to anticipated sales. It is hard to do this because the demographics, choice of product, and store visits may change and your budget is based of a previous year’s budget. The cash budget is compared on a month to month basis. If you start off strong in the first quarter, get less than the projected budget the second and third quarter, the fourth quarter has to even out the losses or exceed the budget for the year.Kimmel, P.D., Weygandt, J.J., & Kieso, D.E. (2016). Accounting Tools for Business Decision Making (6th ed.). Retrieved from The University of Phoenix eBook Collection databaseUniversity of Phoenix. (n.d.). ‘Author’s Corner: Budgets.’ [Multimedia]. Retrieved from University of Phoenix, ACC/561-Accounting website.