BUDGETING

PART 2
BY: JENNIFER T. BALLOGAN
FINANCIAL BUDGET
 CASH RECEIPT SCHEDULE

• shows the pattern in which • Collection from credit sales

a business expects to collect
is the estimated collectibles
cash from its projected
expected to receive at a
sales on the sales budget
given period of time based
based on its past collection
on sales forecast.
patterns.
FORMULA
 CASH DISBURSEMENT SCHEDULE

• – shows the expected cash • Payments to suppliers is the

payments to suppliers, for
estimated payments to
operating expenses, the
suppliers at a given period
capital outlays and the
of time based on the
repayment of loans and
purchase budget.
interest
FORMULA
 CASH BUDGET

• – a budget of expected cash • This is an estimated

receipts and disbursements projection of the company’s
during the period cash position in the future.
FORMULA
OVERALL BUDGET
 BUDGETED INCOME STATEMENT

• projection of revenue,
expenses and results of
operations for a definite
period of time
 BUDGETED BALANCE SHEET

• – the projection of assets or

resources needed and
source of such assets or
resource
 PURPOSE OF BUDGETING
A forecast of income and
expenditure A tool for decision making.

•profitability •motivate managers

to achieve the
desired results
 PURPOSE OF BUDGETING

A means to monitor business performance

•. set a standard of evaluating

actual performance
 Let’s have a short quiz!

• What are the different types
of operating budget?
• Sales Budget
• Purchases Budget
• Cost of Sales
• Operating Budget
 • Cash Receipt Budget
• What are the different types
of financial budget?
• Cash Disbursement Budget
• Cash Budget
 • Budgeted Income Statement
• What are the two kinds of
overall budget
• Budgeted Balance Sheet
Time to practice!