Develop a master budget for IBM Corporation for the upcoming fiscal year 2025. Include budgets for sales, production, direct materials purchases, direct labor, manufacturing overhead, selling and administrative expenses, and cash flows. Use historical data and industry trends to estimate budget figures accurately. Discuss the importance of budgeting in cost control and decision-making for IBM.
Values:
•Sales Forecast: $1,000,000,000
•Desired Ending Cash Balance: $50,000,000
•Direct Materials Budget: $300,000,000