FAP18e Ch023

Chapter 23
Master Budgets and Planning
McGraw-Hill/Irwin
The McGraw-Hill Companies, Inc., 2007
Conceptual Learning Objectives

C1: Describe the importance and benefits of budgeting C2: Explain the process of budget administration C3: Describe a master budget and the process of preparing it
McGraw-Hill/Irwin
Analytical Learning Objectives

A1: Analyze expense planning using activity-based budgeting
McGraw-Hill/Irwin
Procedural Learning Objectives

P1: Prepare each component of a master budget and link each to the budgeting process P2: Link both operating and capital expenditures budgets to budgeted financial statements P3: Appendix 23A: Prepare production and manufacturing budgets
McGraw-Hill/Irwin The McGraw-Hill Companies, Inc., 2007
C1
Budget Process
Defines goals and objectives Communicates plans and instructions Promotes analysis and a focus on the future
Advantages
Coordinates business activities
Motivates employees
McGraw-Hill/Irwin
Provides a basis for evaluating performance against past or expected results The McGraw-Hill Companies, Inc., 2007
C2
Budget Committee
Consists of managers from all departments of the organization.
Provides central guidance to insure that individual budgets submitted from all departments are realistic and coordinated.
McGraw-Hill/Irwin
C2
Budget Committee
Top Management
Middle Management
Middle Management
Supervisor
Supervisor
Supervisor
Supervisor
Flow of Budget Data is a bottom-up process.

C2
Budget Timing
Operating Budget
2007
2008
2009
2010
The annual operating budget may be divided into quarterly or monthly budgets.
McGraw-Hill/Irwin
C2
Budget Timing
Continuous or Rolling Budget
2005
2006
2007
2008
The budget may be a twelve-month budget that rolls forward one month as the current month is completed.
McGraw-Hill/Irwin
C3
Master Budget Components

Sales budget
Merchandise Purchases
Prepare financial budgets: cash income balance sheet

McGraw-Hill/Irwin
Prepare capital expenditure budget
Prepare selling and general administrative budgets

P1
Sales Budget
Sales Budget
Estimated Unit Sales Estimated Unit Price
Analysis of economic and market conditions
+
Forecasts of customer needs from marketing personnel
P1
Sales Budget
In September 2008, Hockey Den sold 700 hockey sticks at $100 each. Hockey Den prepared the following sales budget for the next four months:
McGraw-Hill/Irwin
P1
Sales Budget
HOCKEY DEN Monthly Sales Budget October 2008 January 2009 Budgeted Unit Sales 700
Exh. 23-6
September 2008 (actual) October 2008 November 2008 December 2008 Total January 2009
McGraw-Hill/Irwin
Budgeted Budgeted Unit Price Total Sales $ 100 $ 70,000 100 $ 100 100 100 $ 100 $ 100,000 80,000 140,000 320,000 90,000
1,000 $ 800 1,400 3,200 $ 900 $
P1
Merchandise Purchases Budget

The quantity purchased will be affected by:
Just-in-time inventory systems that enable purchases of smaller, frequently delivered quantities. Safety stock inventory systems that provide protection against lost sales caused by delays in supplier shipments.
McGraw-Hill/Irwin
P1

=
Budgeted ending inventory
Exh. 23-7
Inventory to be purchased
Budgeted cost of sales for the period
Budgeted beginning inventory
Hockey Den buys hockey sticks for $60.00 each and maintains an ending inventory equal to 90 percent of the next months budgeted sales. 900 hockey sticks are on hand on September 30.
Lets prepare the purchases budget for Hockey Den.
P1

HOCKEY DEN Merchandise Purchases Budget October 2008 December 2008
Exh. 23-8
Next month's unit sales Ending inventory percentage Budgeted ending inventory units Add current month's unit sales Total units needed Deduct beginning inventory units Number of units to be purchased Budgeted cost per unit Budgeted cost of purchases
October 800 90% 720
November 1,400 90% 1,260
December 900 90% 810
McGraw-Hill/Irwin
P1

Exh. 23-8
October 800 90% 720 1,000 1,720
November 1,400 90% 1,260 800 2,060
December 900 90% 810 1,400 2,210
McGraw-Hill/Irwin
P1

Exh. 23-8
October 800 90% 720 1,000 1,720 900 820 $ 60 $ 49,200
November 1,400 90% 1,260 800 2,060
December 900 90% 810 1,400 2,210
Beginning inventory is last month's ending inventory.

P1

Exh. 23-8
October 800 90% 720 1,000 1,720 900 820 $ 60 $ 49,200
November 1,400 90% 1,260 800 2,060 720 1,340 $ 60 $ 80,400
December 900 90% 810 1,400 2,210 1,260 950 $ 60 $ 57,000
Beginning inventory is last month's ending inventory.

P1
Selling Expense Budget
Hockey Den pays sales commissions equal to 10 percent of total sales. Hockey Den pays a monthly salary of $2,000 to its sales manager.
Lets prepare the selling expense budget for Hockey Den.

P1
Selling Expense Budget

HOCKEY DEN Selling Expense Budget October 2008 December 2008 Budgeted sales Sales commission % Sales commission Sales manager salary Total selling expenses October $ 100,000 10% $ 10,000 2,000 $ 12,000 November $ 80,000 10% $ 8,000 2,000 $ 10,000 December $ 140,000 10% $ 14,000 2,000 $ 16,000 $ $ $
Exh. 23-9
Total 320,000 10% 32,000 6,000 38,000
From Hockey Dens sales budget

P1
General and Administrative Expense Budget
General and administrative salaries are $4,500 per month. Depreciation of equipment is $1,500 per month.
Lets prepare the general and administrative expense budget for Hockey Den.
P1
General and Administrative Expense Budget

HOCKEY DEN General and Administrative Expense budget October 2008 December 2008
Exh. 23-10
October Administrative salaries $ 4,500 Equipment depreciation 1,500 Total $ 6,000
November $ 4,500 1,500 $ 6,000
December $ 4,500 1,500 $ 6,000
Total $ 13,500 4,500 $ 18,000
McGraw-Hill/Irwin
P1
Capital Expenditures Budget
Hockey Den does not anticipate disposal of any plant assets through December 2008, but they plan to acquire additional equipment for $25,000 cash in Decmber 2008. Since this is the only budgeted capital expenditure for the quarter, no separate budget is shown
McGraw-Hill/Irwin
P2
Financial Budgets
Cash Budget Expected Receipts and Disbursements
Budgeted Income Statement
Budgeted Balance Sheet
McGraw-Hill/Irwin
P2
Budgeted Cash Receipts
Forty percent of Hockey Dens sales are for cash. The remaining sixty percent are credit sales that are collected in full in the month following sale.
Lets prepare the cash receipts budget for Hockey Den.

McGraw-Hill/Irwin
P2

HOCKEY DEN Cash Receipts Budget October 2008 December 2008 Budgeted sales Accounts receivable Cash receipts from: Cash sales Collection of receivables Total cash receipts September $ 70,000 October $ 100,000 November $ 80,000
Exh. 23-12
60 percent of September sales are collected in October
December $ 140,000
From Hockey Dens sales budget

P2

HOCKEY DEN Cash Receipts Budget October 2008 December 2008 Budgeted sales Accounts receivable Cash receipts from: Cash sales Collection of receivables Total cash receipts September $ 70,000 $ 42,000 October $ 100,000 $ 60,000 $ 40,000 November $ 80,000 $ 48,000 $ 32,000
Exh. 23-12
December $ 140,000 $ 84,000 $ 56,000
60% of sales
McGraw-Hill/Irwin
40% of sales
P2

HOCKEY DEN Cash Receipts Budget October 2008 December 2008 Budgeted sales Accounts receivable Cash receipts from: Cash sales Collection of receivables Total cash receipts September $ 70,000 $ 42,000 October $ 100,000 $ 60,000 $ $ 40,000 42,000 82,000 November $ 80,000 $ 48,000 $ $ 32,000 60,000 92,000
Exh. 23-12
December $ 140,000 $ 84,000 $ 56,000 48,000 $ 104,000
McGraw-Hill/Irwin
P2
Cash Disbursements for Purchases
Hockey Dens purchases of merchandise are entirely on account. Full payment is made in the month following purchase. The September 30 balance of Accounts Payable is $58,200.
Lets look at cash disbursements for purchases for Hockey Den.

P2
Cash Disbursements for Purchases

HOCKEY DEN Cash Disbursements for Purchases October 2008 - December 2008 October payments (September 30 balance) November payments (October purchases) December payments (November purchases)
Exh. 23-13
$ 58,200 49,200 80,400
From merchandise purchases budget

P2
Cash Budget
Hockey Den:
Will pay a cash dividend of $3,000 in November.
Will purchase $25,000 of equipment in December.

Has an income tax liability of $20,000 from the previous quarter that will be paid in October. Has a September 30 cash balance of $20,000. Has an agreement with its bank for loans at the end of each month to enable a minimum cash balance of $20,000. Continue
McGraw-Hill/Irwin
P2
Cash Budget
Hockey Den:
Pays interest equal to one percent of the prior months ending loan balance.
Repays loans when the ending cash balance exceeds $20,000. Owes $10,000 on this loan arrangement on September 30. Has 40 percent income tax rate. Will pay taxes for current quarter next year.
Lets prepare the cash budget for Hockey Den.
McGraw-Hill/Irwin
Exh. 23-11
P2
HOCKEY DEN Cash Budget October 2008 - December 2008 Beginning cash balance Receipts from customers Total cash available Disbursements Payments for merchandise Sales commissions Sales salaries Administrative salaries Income taxes From Dividends Interest Equipment purchase Total disbursements Preliminary balance
McGraw-Hill/Irwin
October $ 20,000 82,000 $ 102,000
November 92,000
December 104,000
Cash Receipts Budget
Exh. 23-11
P2
HOCKEY DEN Cash Budget October 2008 - December 2008 Beginning cash balance Receipts from customers 92,000 104,000 Total cash available Disbursements Payments for merchandise $ 58,200 $ 49,200 $ 80,400 Sales commissions Sales salaries Administrative salaries Income taxes From Cash Disbursements Dividends for Purchases Interest Equipment purchase Total disbursements Preliminary balance
October $ 20,000 82,000 $ 102,000
November
December
Exh. 23-11
P2
HOCKEY DEN Cash Budget October 2008 - December 2008 Beginning cash balance Receipts from customers 92,000 Total cash available Disbursements Payments for merchandise $ 58,200 $ 49,200 Sales commissions 10,000 8,000 Sales salaries 2,000 2,000 Administrative salaries Income taxes Dividends From Selling Expense Interest Equipment purchase Total disbursements Preliminary balance
McGraw-Hill/Irwin
October $ 20,000 82,000 $ 102,000
November
December 104,000
$ 80,400 14,000 2,000
Budget
Exh. 23-11
P2
HOCKEY DEN Cash Budget October 2008 - December 2008 Beginning cash balance Receipts from customers 92,000 104,000 Total cash available Disbursements Payments for merchandise $ 58,200 $ 49,200 $ 80,400 Sales commissions 10,000 8,000 14,000 Sales salaries 2,000 2,000 2,000 Administrative salaries 4,500 4,500 4,500 Income taxes Dividends From General and Interest Administrative Expense Budget Equipment purchase Depreciation is a Total disbursements Preliminary balance non-cash expense.
October $ 20,000 82,000 $ 102,000
November
December
Exh. 23-11
P2
HOCKEY DEN Cash Budget October 2008 - December 2008 Beginning cash balance Because Hockey Den Receipts from customers 92,000 104,000 maintains a minimum Total cash available cash balance of $20,000, Disbursements Payments for merchandise $ 58,200 the 49,200 $ company must $ 80,400 Sales commissions 10,000 8,000 14,000 borrow $12,800. Sales salaries 2,000 2,000 2,000 Administrative salaries 4,500 4,500 4,500 Income taxes 20,000 Dividends .01 $10,000 Interest 100 Equipment purchase Total disbursements $ 94,800 Preliminary balance $ 7,200
October $ 20,000 82,000 $ 102,000
November
December
P2
Cash Budget Continued

HOCKEY DEN Cash Budget October 2008 - December 2008 October $ 7,200 12,800 $ 20,000 $ 22,800 November
Exh. 23-11
December
Preliminary balance Additional borrowing Loan repayment Ending cash balance Ending loan balance
Ending cash balance for October is the beginning November balance.

Exh. 23-11
P2
HOCKEY DEN Cash Budget October 2008 - December 2008 Beginning cash balance Receipts from customers Total cash available Disbursements Payments for merchandise $ Sales commissions Sales salaries Administrative salaries Income taxes .01 $22,800 Dividends Interest Equipment purchase Total disbursements $ Preliminary balance $
McGraw-Hill/Irwin
October $ 20,000 82,000 $ 102,000 58,200 10,000 2,000 4,500 20,000 100 94,800 7,200
November $ 20,000 92,000 $ 112,000 $ 49,200 8,000 2,000 4,500 3,000 228 $ 66,928 $ 45,072
December 104,000
Cash balance is sufficient to repay the $22,800 loan.
$ 80,400 14,000 2,000 4,500
P2

HOCKEY DEN Cash Budget October 2008 - December 2008 October $ 7,200 12,800 $ 20,000 $ 22,800 November $ 45,072 (22,800) $ 22,272 $ 0
Exh. 23-11
December
Ending cash balance for November is the beginning December balance.

Exh. 23-11
P2
HOCKEY DEN Cash Budget October 2008 - December 2008 Beginning cash balance Receipts from customers Total cash available Disbursements Payments for merchandise Sales commissions Sales salaries Administrative salaries Income taxes Dividends Interest Equipment purchase Total disbursements Preliminary balance
McGraw-Hill/Irwin
October $ 20,000 82,000 $ 102,000 $ 58,200 10,000 2,000 4,500 20,000 100 $ 94,800 $ 7,200
November $ 20,000 92,000 $ 112,000 $ 49,200 8,000 2,000 4,500 3,000 228 $ 66,928 $ 45,072
December $ 22,272 104,000 $ 126,272 $ 80,400 14,000 2,000 4,500
25,000 $ 125,900 $ 372
P2

HOCKEY DEN Cash Budget October 2008 - December 2008 October $ 7,200 12,800 $ 20,000 $ 22,800 November $ 45,072 (22,800) $ 22,272 $ 0
Exh. 23-11
December $ 372 19,628 $ 20,000 $ 19,628
McGraw-Hill/Irwin
P2
Budgeted Income Statement

Cash Budget Budgeted Income Statement
Lets prepare the budgeted income statement for Hockey Den.

P2
From the Sales Budget

HOCKEY DEN Budgeted Income Statement For Three Months Ended December 31, 2008 Sales (3,200 units @ $100) Cost of goods sold (3,200 units @ $60) Gross profit Operating expenses: Sales commissions Sales salaries Administrative salaries Equipment depreciation Interest expense Net income before taxes Income tax expense Net income $ 320,000 192,000 $ 128,000 $ 32,000 6,000 13,500 4,500 328
Exh. 23-14
56,328 $ 71,672 28,669 $ 43,003
McGraw-Hill/Irwin
P2
From the Merchandise Purchases Budget

HOCKEY DEN Budgeted Income Statement For Three Months Ended December 31, 2008 Sales (3,200 units @ $100) Cost of goods sold (3,200 units @ $60) Gross profit Operating expenses: Sales commissions Sales salaries Administrative salaries Equipment depreciation Interest expense Net income before taxes Income tax expense Net income $ 320,000 192,000 $ 128,000 $ 32,000 6,000 13,500 4,500 328
Exh. 23-14
56,328 $ 71,672 28,669 $ 43,003
McGraw-Hill/Irwin
Exh. 23-14
P2
HOCKEY DEN Budgeted Income Statement For Three Months Ended December 31, 2008 Sales (3,200 units @ $100) Cost of goods sold (3,200 units @ $60) Gross profit Operating expenses: Sales commissions $ 32,000 Sales salaries 6,000 Administrative salaries 13,500 Equipment depreciation 4,500 Interest expense 328 Net income before taxes From the Selling Income tax expense Expense Budget Net income
McGraw-Hill/Irwin
$ 320,000 192,000 $ 128,000
56,328 $ 71,672 28,669 $ 43,003
Exh. 23-14
P2
HOCKEY DEN Budgeted Income Statement For Three Months Ended December 31, 2008 Sales (3,200 units @ $100) Cost of goods sold (3,200 units @ $60) Gross profit Operating expenses: Sales commissions $ 32,000 Sales salaries 6,000 Administrative salaries 13,500 Equipment depreciation 4,500 Interest expense 328 Net income before taxes From the General and Administrative Income tax expense Expense Budget Net incomeDepreciation is a non-cash expense.
McGraw-Hill/Irwin
$ 320,000 192,000 $ 128,000
56,328 $ 71,672 28,669 $ 43,003
Exh. 23-14
P2
HOCKEY DEN Budgeted Income Statement For Three Months Ended December 31, 2008 Sales (3,200 units @ $100) Cost of goods sold (3,200 units @ $60) Gross profit Operating expenses: Sales commissions $ 32,000 Sales salaries 6,000 Administrative salaries 13,500 Equipment depreciation 4,500 Interest expense 328 Net income before taxes Income tax expense From the Cash Budget Net income
McGraw-Hill/Irwin
$ 320,000 192,000 $ 128,000
56,328 $ 71,672 28,669 $ 43,003
Exh. 23-14
P2
HOCKEY DEN Budgeted Income Statement For Three Months Ended December 31, 2008 Sales (3,200 units @ $100) Cost of goods sold (3,200 units @ $60) Gross profit Operating expenses: Sales commissions $ 32,000 Sales salaries 6,000 Administrative salaries 13,500 Equipment depreciation 4,500 Interest expense 328 Net income before taxes Income tax expense $71,672 .40 Net income
McGraw-Hill/Irwin
$ 320,000 192,000 $ 128,000
56,328 $ 71,672 28,669 $ 43,003
P2
Budgeted Balance Sheet

Budgeted Income Statement Budgeted Balance Sheet
Lets prepare the budgeted balance sheet for Hockey Den.

P2
Preparing a Budgeted Balance Sheet

Hockey Den reports the following account balances on September 30 prior to preparing its budgeted financial statements:
Equipment $200,000 Accumulated depreciation $ 36,000 Common stock $150,000 Retained prepare the budgeted balance 41,800 $ Lets earnings
sheet for Hockey Den.
McGraw-Hill/Irwin
P2
HOCKEY DEN Budgeted Balance Sheet December 31, 2008 Assets Cash Accounts receivable Inventory Equipment Less accumulated depreciation Total assets $ 20,000 84,000 48,600 $ 225,000 40,500 184,500 $337,100
Exh. 23-15
Liabilities and Equity Liabilities Accounts payable Income taxes payable Bank loan payable Stockholders' equity Common stock Retained earnings Total liabilities and equity
McGraw-Hill/Irwin
$ 57,000 28,669 19,628 $ 150,000 81,803
$105,297
231,803 $337,100
P2
HOCKEY DEN Budgeted Balance Sheet December 31, 2008 Assets Cash From the Cash Accounts receivable Inventory Equipment Less accumulated depreciation Total assets
Exh. 23-15
Budget
$ 225,000 40,500
$ 20,000 84,000 48,600 184,500 $337,100
McGraw-Hill/Irwin
$ 57,000 28,669 19,628 $ 150,000 81,803
$105,297
231,803 $337,100
P2
Cash Accounts receivable Inventory Equipment Less accumulated depreciation Total assets
From the Cash Receipts Assets Budget
HOCKEY DEN Budgeted Balance Sheet December 31, 2008
Exh. 23-15
$ 20,000 84,000 48,600 184,500 $337,100
$ 225,000 40,500
McGraw-Hill/Irwin
$ 57,000 28,669 19,628 $ 150,000 81,803
$105,297
231,803 $337,100
P2
From the Merchandise Purchases Budget Assets 810 units @ $60 Cash
Accounts receivable Inventory Equipment Less accumulated depreciation Total assets $ 225,000 40,500
Exh. 23-15
$ 20,000 84,000 48,600 184,500 $337,100
McGraw-Hill/Irwin
$ 57,000 28,669 19,628 $ 150,000 81,803
$105,297
231,803 $337,100
P2
$200,000 September 30 balance plus the Assets $25,000 December acquisition Cash
Accounts receivable Inventory Equipment Less accumulated depreciation Total assets $ 225,000 40,500
Exh. 23-15
$ 20,000 84,000 48,600 184,500 $337,100
McGraw-Hill/Irwin
$ 57,000 28,669 19,628 $ 150,000 81,803
$105,297
231,803 $337,100
P2
$36,000 September 30 balance plus the Assets $4,500 from the General and Cash Administrative Accounts receivable Expense Budget
Inventory Equipment Less accumulated depreciation Total assets $ 225,000 40,500
Exh. 23-15
$ 20,000 84,000 48,600 184,500 $337,100
McGraw-Hill/Irwin
$ 57,000 28,669 19,628 $ 150,000 81,803
$105,297
231,803 $337,100
P2
HOCKEY DEN Budgeted Balance Sheet December 31, 2008 Assets Cash Accounts receivable Inventory Equipment From the Merchandise Less accumulated depreciation Purchases Budget Total assets $ 20,000 84,000 48,600 $ 225,000 40,500 184,500 $337,100
Exh. 23-15
McGraw-Hill/Irwin
$ 57,000 28,669 19,628 $ 150,000 81,803
$105,297
231,803 $337,100
P2
HOCKEY DEN Budgeted Balance Sheet December 31, 2008 Assets Cash Accounts receivable Inventory Equipment Less accumulated depreciation From the Budgeted Total assets $ 20,000 84,000 48,600 $ 225,000 40,500 184,500 $337,100
Exh. 23-15
Income Statement
McGraw-Hill/Irwin
$ 57,000 28,669 19,628 $ 150,000 81,803
$105,297
231,803 $337,100
P2
Exh. 23-15
From theLiabilities and Equity Cash Budget

Liabilities Accounts payable Income taxes payable Bank loan payable Stockholders' equity Common stock Retained earnings Total liabilities and equity
McGraw-Hill/Irwin
$ 57,000 28,669 19,628 $ 150,000 81,803
$105,297
231,803 $337,100
P2
Exh. 23-15
Beginning retained earnings $ 41,800 Liabilities and Equity Add net income 43,003 Liabilities Deduct dividends Accounts payable $ 57,000 (3,000) Ending retained $ Income taxes payable earnings 28,669 81,803
Bank loan payable Stockholders' equity Common stock Retained earnings Total liabilities and equity
McGraw-Hill/Irwin
19,628 $ 150,000 81,803
$105,297
231,803 $337,100
A1
Activity-Based Budgeting
Exh. 23-16
Activity-based budgeting is based on activities rather than traditional items such as salaries, supplies, depreciation, and utilities.
McGraw-Hill/Irwin
End of Chapter 23
McGraw-Hill/Irwin

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Chapter 23

Master Budgets and Planning

The McGraw-Hill Companies, Inc., 2007

Conceptual Learning Objectives

The McGraw-Hill Companies, Inc., 2007

Analytical Learning Objectives

The McGraw-Hill Companies, Inc., 2007

Procedural Learning Objectives

The McGraw-Hill Companies, Inc., 2007

Flow of Budget Data is a bottom-up process.

The McGraw-Hill Companies, Inc., 2007

The McGraw-Hill Companies, Inc., 2007

Master Budget Components

Prepare financial budgets: cash income balance sheet

Prepare capital expenditure budget

Prepare selling and general administrative budgets

Analysis of economic and market conditions

The McGraw-Hill Companies, Inc., 2007

1,000 $ 800 1,400 3,200 $ 900 $

The McGraw-Hill Companies, Inc., 2007

Merchandise Purchases Budget

The McGraw-Hill Companies, Inc., 2007

Merchandise Purchases Budget

Budgeted cost of sales for the period

Budgeted beginning inventory

Merchandise Purchases Budget

October 800 90% 720

November 1,400 90% 1,260

December 900 90% 810

The McGraw-Hill Companies, Inc., 2007

Merchandise Purchases Budget

October 800 90% 720 1,000 1,720

November 1,400 90% 1,260 800 2,060

December 900 90% 810 1,400 2,210

The McGraw-Hill Companies, Inc., 2007

Merchandise Purchases Budget

October 800 90% 720 1,000 1,720 900 820 $ 60 $ 49,200

November 1,400 90% 1,260 800 2,060

December 900 90% 810 1,400 2,210

Beginning inventory is last month's ending inventory.

Merchandise Purchases Budget

October 800 90% 720 1,000 1,720 900 820 $ 60 $ 49,200

November 1,400 90% 1,260 800 2,060 720 1,340 $ 60 $ 80,400

December 900 90% 810 1,400 2,210 1,260 950 $ 60 $ 57,000

Beginning inventory is last month's ending inventory.

Selling Expense Budget

Lets prepare the selling expense budget for Hockey Den.

Selling Expense Budget

Total 320,000 10% 32,000 6,000 38,000

From Hockey Dens sales budget

General and Administrative Expense Budget

General and Administrative Expense Budget

October Administrative salaries $ 4,500 Equipment depreciation 1,500 Total $ 6,000

November $ 4,500 1,500 $ 6,000

December $ 4,500 1,500 $ 6,000

Total $ 13,500 4,500 $ 18,000

The McGraw-Hill Companies, Inc., 2007

Capital Expenditures Budget

Cash Budget Expected Receipts and Disbursements

Budgeted Income Statement

Budgeted Balance Sheet

The McGraw-Hill Companies, Inc., 2007