Budg Eted Furniture Company2023Financial Statements in U.S. DollarsRevenueGross SalesLess: Sales Returns and AllowancesNet SalesCost of Goods SoldBeginning InventoryAdd:DM: otherDirect LaborIndirect ExpensesInventory AvailableLess: Ending InventoryCost of Goods SoldGross Profit (Loss)ExpensesAdvertisingAmortizationDM: woodBad DebtsBank ChargesCharitable ContributionsCommissionsContract LaborMachinery & Tools DepreciationDues and SubscriptionsEmployee Benefit Programs.InsuranceInterestLegal and Professional FeesLicenses and FeesMiscellaneousOffice ExpensePayroll TaxesPayment ratesRentRepairs and MaintenanceSuppliesTelephoneTravelUtilities (Electricity)Vehicle ExpensesWagesTotal ExpensesNet Operating IncomeOther IncomeGain (Loss) on Sale of AssetsInterest IncomeTotal Other IncomeNet Income (Loss)Budgeted Income StatementJan-234175041750720036001455025350253501640024%250125200100060021751422514225Feb-2357500575001053049702000035500355002200032%250125200100060021751982519825Mar-2376750767501440060002615046550465503020044%25012520010006002175280252802517600010740068600652562075062075 Budg Eted Furniture Company2023Financial Statements in U.S. DollarsCash receivedSalesCapital introducedTotal cash receiptsCash paidDirect Material: woodDirect material: otherDirect labourMachinery & ToolsInsurance.Payment ratesRentUtilities (Electricity)Personal ExpensesTotal cash paymentsCash receipts Cash paymentsCash at the start of the monthCash at the end of the monthBudgeted Cash Flow StatementJan-2312525100002252536003600145501500015003000200043250(20725)0(20725)Feb-2346475464757425497020000120020003559510880(20725)(9845)DescriptionThis is a cash flow statement that shows the inflow and outflow of cash for Budg Eted Furniture Company.Mar-23632756327511799600026150150020004744915826(9845)5981TOTALDescription122275 [1]10000 [2]13227522824 [3]14570 [4]60700 [5]15000 [6]1500 [7]1200 [8]3000 [9]1500 [10]6000 [11]1262945981 [12][13][14]Cash inflow or outflow = Total budgeted cash receipts - Total budgeted cash payments that will result in cash in hand for Budg's business.[1] Use the budgeted cash receipts that was calculated in Step 7.[2] Budg is paying $10,000 of her own money on 1 January as mentioned by Budg,[3] Use the budgeted cash payments that was calculated in Step 8.[4] Use the budgeted fixed cost in Step 5 and budgeted income statement in Step 6 to record the payments to Budg's suppliers of other direct materials in the month in whichthe other direct materials are used so these cash payments are the same as the budgeted costs.[5] Use the budgeted fixed cost in Step 5 and budgeted income statement in Step 6 to record the payments for direct labour to be paid in the month in which production andsales take place so these cash payments are the same as the budgeted costs.[6] According to Step 5, the cash outflow to buy the machinery and tools occurs in January so the whole $15,000 cash payment to be recognized in January.Depreciation is not a cash flow. It is just an accounting adjustment that spreads the cost of non-current assets over the periods benefitting from their use.[7] According to Step 5, the insurance cost that was paid in January for 12 months will be reflected in January as the whole cash outflow of $1,500.[8] According to Step 5, the rates bill is paid in February and the full $1,200 payment is recognized in the cash flow forecast as paid in February.[9] According to Step 5, the 3-months rent is paid on 1 January which is spread across three months. Nevertheless, the actual cash payment is budgeted to take place inJanuary, so the whole $3000 is to be recognized in the January outflows of cash.[10] According to Step 5, the electricity bill received in March will be for $1,500 and it will be paid in March. Additional $300 accrual will be paid in later period.[11] Budg pays herself $2,000 a month from which to meet her personal expenditure so she recognizes this as a cash outflow each month.[12] Upon totalling up the cash receipts (inflows) and the cash payments (outflows) where cash receipts - cash payments, you will realize a shortfall of cash in January of$20,725 that means Budg's bank account will be overdrawn but with a later rise in February and March.[13] Cash at the start of the month is the cash balance at the end of the previous month. In the first month of a new business venture, as in Budg's case, this will be $0. Incontinuing businesses, this will be forecast or actual figure at the end of the last financial period[14] The cash at month end is the net cash inflow or outflow for the month plus or minus the cash or overdraft at the start of the month. In January, the net outflow is $20,725while the cash at the start of January is $0 so ($20,725) +/- $0= ($20,725). At the end of February, there is a net cash inflow of $10,880 (total cash inflows of $46,475 - totalcash outflows of $35,595). Adding the positive inflow of $10,880 to the negative balance in January ($20,725) gives a lower overdraft in February ($9,845) which forms thebalance at the start of March.

This is a budgeted income statement for Budg Eted Furniture Company for the first quarter of 2023,…

Budg Eted Furniture Company 2023 Financial Statements in U.S. Dollars Revenue Gross Sales Less: Sales Returns and Allowances Net Sales Cost of Goods Sold Beginning Inventory Add: DM: other Direct Labor Indirect Expenses Inventory Available DM: wood Less: Ending Inventory Cost of Goods Sold Gross Profit (Loss) Expenses Advertising Amortization Bad Debts Bank Charges Charitable Contributions Commissions Contract Labor Machinery & Tools Depreciation Dues and Subscriptions Employee Benefit Programs Insurance Interest Legal and Professional Fees Licenses and Fees Miscellaneous Office Expense Payroll Taxes Payment rates Rent Repairs and Maintenance Supplies Telephone Travel Utilities (Electricity) Vehicle Expenses Wages Total Expenses Net Operating Income Other Income Gain (Loss) on Sale of Assets Interest Income Total Other Income Net Income (Loss) Budgeted Income Statement Jan-23 41750 41750 7200 3600 14550 25350 25350 16400 24% 250 125 200 1000 600 2175 14225 14225 Feb-23 57500 57500 10530 4970 20000 35500 35500 22000 32% 250 125 200 1000 600 2175 19825 19825 Mar-23 76750 76750 14400 6000 26150 46550 46550 30200 44% 250 125 200 1000 600 2175 28025 28025 176000 107400 68600 6525 62075 0 62075