Shown below are the totals from 2025 period budgets. Revenue budget $100,000 Materials usage from production budget 15,000 Labor cost budget 20,000 Manufacturing overhead budget 20,000 General and administrative budget 30,000 Capital expenditure budget 20,000 Work in Progress Inventories Beginning of 2002 10,000 End of 2002 5,000 Finished Goods Inventory Beginning of 2002 15,000 End of 2002 10,000 Tax Rate 40% Required: Prepare a forecasted Income Statement for 2025.
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.
Shown below are the totals from 2025 period budgets.
Revenue budget $100,000
Materials usage from production budget 15,000
Labor cost budget 20,000
Manufacturing
General and administrative budget 30,000
Capital expenditure budget 20,000
Work in Progress Inventories
Beginning of 2002 10,000
End of 2002 5,000
Finished Goods Inventory
Beginning of 2002 15,000
End of 2002 10,000
Tax Rate 40%
Required: Prepare a
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