Reference no: EM131826802
Question - Maryam is the manager of an airport gift shop, Maryam News and Gifts. From the following data, Mr. Iresha wants a cash budget showing expected cash receipts and disbursements for the month of September, and the cash balance expected as of September 30, 2017.
• Planned cash balance, August 31, 2017: $100,000
• Customer receivables as of August 31: 5530,000, total $80,000 from July sales, $450,000 from August sales.
• Account payable, August 31: $380,000.
• Merchandise purchases for September: $480,000, 30% paid in month of purchase, 70% paid in next month
• Payroll due in September: $75,000
• Other expenses for September, payable in September: $25,000
• Bank note due September 10: $90,000 plus $6,800 interest
• Depreciation for September: $1,800
• Sales for September: $1,200,000. half collected in month of sale, 40% in next month, and 10% in third month.
(a) What are the major components of a management control system?
(b) "Control system in non-profit organizations will never be as highly developed as in profit-seeking organizations." Do you agree? Explain.
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