Great Rivers International is a global company operating mainly in North America, Europe, and Asia. Two years ago, the c

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Great Rivers International Is A Global Company Operating Mainly In North America Europe And Asia Two Years Ago The C 1 (114.78 KiB) Viewed 45 times

Great Rivers International is a global company operating mainly in North America, Europe, and Asia. Two years ago, the company decided to enter the Africa market through its subsidiary in Africa, Nile River Company. Nile River Company has just completed building its pharmaceutical plant in Africa. The total project cost was $26.1 million, as shown below. Building $10.0 million Machinery and equipment 15.0 million. Furniture and fixtures 0.5 million Vehicles 0.2 million Working capital 0.4 million Total $26.1 million Next year will be the first year of operation for Nile River Company after almost two years being in a development stage. The company has formulated its strategic plan and an operational plan for next year. Management intends to translate the operational plan into a master budget. The finance manager at Nile River Company is responsible for all planning and budgeting activities in the company. Next year's master budget will be the first master budget to be prepared for Nile River Company. Required: 1. Define the master budget and outline the process that should be followed in order to prepare the budget at Nile River Company. 2. Identify the components of the sales budget. Explain the interrelationships of the sales budget with the other components of the master budget.