OBJECTIVE D: Prepare a master budget and use the information in it to analyze the results of operations. This chapter will examine in detail the preparation of a master budget, including schedules for sales, collections, cost of sales, payments, operating expenses, a cash budget, and budgeted income statement and balance sheet. It will discuss the purposes and uses of budgets for managers. Profit planning involves the preparation of a number of budgets, integrated as the master budget, that outline…
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