ABC Factory Balance Sheet Year 1 % Year 2 % Assets Cash 43,500 8.84 55,000 14.25 Inventory 22,000 4.47 23,500 6.09 Equipment and fixures 380,000 77.24 255,000 66.08 Supplies 3,800 0.77 4,100 1.06 Prepaid expenses 9,200 1.87 12,500 3.24 Store design/Buildout 27,000 5.49 27,000 7 Loan Fee 4,000 0.81 5,500 1.42 Advertising and Marketing 2,500 0.51 3,300 0.86 Total assets 492,000 100 385,900 100 Bank Loan 150,000 30.49 170,000 44.05 Other liability (Balancing figure) 292,000 59.35 170,900 44.29 Owner contribution 50,000 10.16 45,000 11.66 Total equity and liability 492,000 100 385,900 100 ABC Factory Income Statement Particular Year 1 Year 2 Revenue 50,000 52,500 Operating Expenses Rent 4200 4,410 Insurance 1000 1,050 License and Registration 2000 2,100 Wages 20000 21,000 Marketing and Advertising 2500 2,625 Non- Operating Expense Loan Fee 4000 4,200 Total Expense 33,700 35,385 Net Income 16,300 17,115 Use the balance Sheet and income statement to prepare a cash flow for Year 1 and Year 2
ABC Factory Balance Sheet Year 1 % Year 2 % Assets Cash 43,500 8.84 55,000 14.25 Inventory 22,000 4.47 23,500 6.09 Equipment and fixures 380,000 77.24 255,000 66.08 Supplies 3,800 0.77 4,100 1.06 Prepaid expenses 9,200 1.87 12,500 3.24 Store design/Buildout 27,000 5.49 27,000 7 Loan Fee 4,000 0.81 5,500 1.42 Advertising and Marketing 2,500 0.51 3,300 0.86 Total assets 492,000 100 385,900 100 Bank Loan 150,000 30.49 170,000 44.05 Other liability (Balancing figure) 292,000 59.35 170,900 44.29 Owner contribution 50,000 10.16 45,000 11.66 Total equity and liability 492,000 100 385,900 100 ABC Factory Income Statement Particular Year 1 Year 2 Revenue 50,000 52,500 Operating Expenses Rent 4200 4,410 Insurance 1000 1,050 License and Registration 2000 2,100 Wages 20000 21,000 Marketing and Advertising 2500 2,625 Non- Operating Expense Loan Fee 4000 4,200 Total Expense 33,700 35,385 Net Income 16,300 17,115 Use the balance Sheet and income statement to prepare a cash flow for Year 1 and Year 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
| ABC Factory | ||||
| |
||||
| Year 1 | % | Year 2 | % | |
| Assets | ||||
| Cash | 43,500 | 8.84 | 55,000 | 14.25 |
| Inventory | 22,000 | 4.47 | 23,500 | 6.09 |
| Equipment and fixures | 380,000 | 77.24 | 255,000 | 66.08 |
| Supplies | 3,800 | 0.77 | 4,100 | 1.06 |
| Prepaid expenses | 9,200 | 1.87 | 12,500 | 3.24 |
| Store design/Buildout | 27,000 | 5.49 | 27,000 | 7 |
| Loan Fee | 4,000 | 0.81 | 5,500 | 1.42 |
| Advertising and Marketing | 2,500 | 0.51 | 3,300 | 0.86 |
| Total assets | 492,000 | 100 | 385,900 | 100 |
| Bank Loan | 150,000 | 30.49 | 170,000 | 44.05 |
| Other liability (Balancing figure) | 292,000 | 59.35 | 170,900 | 44.29 |
| Owner contribution | 50,000 | 10.16 | 45,000 | 11.66 |
| Total equity and liability | 492,000 | 100 | 385,900 | 100 |
| ABC Factory | ||
| Income Statement | ||
| Particular | Year 1 | Year 2 |
| Revenue | 50,000 | 52,500 |
| Operating Expenses | ||
| Rent | 4200 | 4,410 |
| Insurance | 1000 | 1,050 |
| License and Registration | 2000 | 2,100 |
| Wages | 20000 | 21,000 |
| Marketing and Advertising | 2500 | 2,625 |
| Non- Operating Expense | ||
| Loan Fee | 4000 | 4,200 |
| Total Expense | 33,700 | 35,385 |
| Net Income | 16,300 | 17,115 |
Use the balance Sheet and income statement to prepare a
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