The budgeted income statement
It summarizes the various component projections of revenues and expenses for the budgeting period. For control purposes the budget can be devided into quartes or months, depending on the need.
SCHEDULE 9
ALFA Company
Budgeted income statement (in thousand UAH) for the year ended Dec. 31 2010
|
From Schedule |
|
|
Sales Less: Variable expenses Variable cost of goods sold (3,200 @41) Variable selling and administrative |
1 6 7 |
131,200 12,800 |
250,900 144,000 |
Contribution margin |
7 |
|
106,900 |
Less: Fixed expenses Factory overhead Selling and administrative |
5 7 |
24,000 43,800 |
67,800 |
Net operating income Less: interest expense |
8 |
|
39,100 425 |
Net income before taxes |
|
|
38,675 |
Less: income taxes (20%) |
|
|
7,735 |
|
|
|
30,940 |
The budgeted balance sheet
The budgeted balance sheet is developed starting from the balance sheet for the year just ended
SHEDULE 10
ALFA Company Balance sheet (in thousand UAH) for the year ended Dec. 31 2009
ASSETS |
|
LIABILITIES AND STOCKHOLDER'S EQUITY |
|
Current assets |
|
Current liabilities |
|
Cash |
10,000 |
Accounts payable |
2,200 |
Accounts receivable |
9,500 |
Income tax payable |
4,000 |
Materials inventory |
474 |
|
6,200 |
Finished goods inventory |
3,280 |
|
|
|
23,254 |
Stockholders' equity |
|
|
|
Common stock |
70,000 |
Fixed assets |
|
Retained earnings |
37,054 |
Land |
50,000 |
|
107,054 |
Building and equipment |
100,000 |
|
|
Accumulated depreciation |
(60,000) |
|
|
|
90,000 |
|
|
Total assets |
113,254 |
Total liabilities and stockholders' equity |
113,254 |
This balance sheet must be adjusted using all the activities that are expected to take place during the budget period as they are shown in the proceeding schedules.
ALFA Company
Balance sheet (in thousand UAH) for the year ended Dec. 31 2010
ASSETS |
|
LIABILITIES AND STOCKHOLDER'S EQUITY |
|
Current assets |
|
Current liabilities |
|
Cash |
24,353 1 |
Accounts payable |
2,464 7 |
Accounts receivable |
17,920 2 |
Income tax payable |
7,735 8 |
Materials inventory |
500 3 |
|
10,199 |
Finished goods inventory |
4,100 3 |
|
|
|
46,373 |
Stockholders' equity |
|
|
|
Common stock |
70,000 9 |
Fixed assets |
|
Retained earnings |
67,994 10 |
Land |
50,000 4 |
|
137,994 |
Building and equipment |
124,300 5 |
|
|
Accumulated depreciation |
(73,000) 6 |
|
|
|
148,193 |
|
|
Total assets |
148,193 |
Total liabilities and stockholders' equity |
148,193 |
1. From schedule 8 (cash budget)
2. From schedule 1 (sales budget)
Accounts receivable = Beginning balance + sales - receipts
3. From schedule 6 (ending inventory budget)
4. From 2009 balance sheet
5. From 2009 balance sheet + schedule 8
6. From 2009 balance sheet plus 13.000 from schedule 5
7. Accounts payable = beginning balance + purchase cost (schedule 3) - disbursements for materials (schedule 3) - disbursements for materials (schedule 3)
8. From schedule 9 (budgeted income statement)
9. Unchanged
10. Beginning balance + net income (from schedule 9)