TEAM MEMBERS:

Calderón Paniagua Jorge Azael

EXAMPLE PLAN OF
BUDGET Chavelaz Chaves Jose Enrique
Manufacturer
I a single
i Mendiola Sotelo Oscar Damian
producto, presupuestacióni
Corza KarenKaren
Peña Corza Jovana Peña
Jovana
quarterly
i l
Valente Raquel Leslie Karina
Villegas Rodríguez Carlos Uriel

THE STRUCTURE OF THE BUDGET

OPERATING BUDGET:
Sales
2. From production and final inventory
3. Raw materials and expenses for their purchase
4. Direct labor
5. Of factory overhead expenses
6. Of sales and administrative expenses
7. Proforma income statement
1
2 FINANCIAL BUDGET: incomes
3 8. From the treasury Treasury expenses
4 9. Proforma Balance surplus or deficit
5 financing
6 BUDGET SEQUENCE:
7 a) Forecast sales
8 b) Production volume
 9 c) Manufacturing costs and operating expenses
d) Cash flow
e) Projected financial statements

EXAMPLE: C. Johnson manufactures a single product, quarterly budgeting. Shim and Siegel pg. 72 and following

Unit selling price 80€; from the sales of each quarter, 70% is collected in the same quarter, 28% in the following one, and the remaining 2% is NOT collected.
1
10 SALES BUDGET reference 1 2 3 4 TOTAL
11 Expected sales, units data 800 700 900 800 3200
12 Unit selling price data 80 80 80 80 80 Pv 80
Total ventas (euros) 64000 56000 72000 64000 256000
Accounts receivable collected (12/31/previous) date 9,500 9,500
Cash sales 1st quarter 44800 17920 62720
Cash sales 2nd quarter 39200 15680 54880
Cash sales 3rd quarter 50400 20160 70560
Cash sales 4th quarter 44800 44800
Charges to clients (euros) 54,300 57,120 66,080 64,960 242,460

12 The expected production is obtained by adding the units that will be sold to the planned ending inventory and subtracting the expected beginning inventory.
13 The final inventory will be 10% of the sales of the following quarter. The 4th quarter will be 100 units.
14 The initial inventory is equal to the end of the previous period.
15
16 PRODUCTION BUDGET reference 1 2 3 4 TOTAL
17 Ventas esperadas, unidades date 800 700 900 800 3200
18 Desired final inventory given the 4th quarter 70 90 80 100 100
19 Initial inventory given the first 80 70 90 80 80
20 Required production, units 790 720 890 820 3220
21
22 The purchase of raw materials = estimated production + final inventory - initial inventory (all in units)
23 The final inventory of raw materials covers only 10% of the production needs for the next quarter. The final inventory for the 4th quarter is
24 Raw materials are paid 50% in cash and the rest in the following quarter.
25 Each final product unit requires 3 kg of raw materials, at a cost of €2 per kilo.
The initial inventory is equal to the end of the previous period.
 BUDGET FOR RAW MATERIALS reference 1 2 3 4 TOTAL
Required production, units data 790 720 890 820 3220
12 Raw material required per unit data 3 3 3 3 3
26 Total raw material for production 2370 2160 2670 2460 9660
27 Final inventory of raw materials given the 4th quarter 216 267 246 250 250 6 Cv (1)
28 Initial raw materials inventory given the first 237 216 267 246 237
29 Purchases of raw materials, units 2349 2211 2649 2464 9673
Unit price of the raw material dato 2 2 2 2 2
Purchases of raw materials, euros 4698 4422 5298 4928 19346
Accounts payable paid (12/31/previous) date 2200 2200
Cash purchases paid in the 1st quarter 2349 2349 4698
Cash purchases paid in the 2nd quarter 2211 2211 4422
Purchases paid in cash 3rd quarter 2649 2649 5298
Cash purchases paid in the 4th quarter 2464 2464
27 Total purchases paid (euros) 4549 4560 4860 5113 19082
30 Resume of p
31 To produce one unit, 5 hours of work are needed, and each hour of work is paid at 5€.
32
33 LABOR BUDGET reference 1 2 3 4 TOTAL
34 Required production, units date 790 720 890 820 3220

Direct labor, hours data 5 5 5 5 5

Total hours 3950 3600 4450 4100 16100 25 Cv (2)
Labor hourly rate date 5 5 5 5 5
Total cost of labor 19750 18000 22250 20500 80500

1 Remaining expenses, variable or fixed other than raw materials and labor that are direct
35 Total indirect costs €6000 per quarter, plus €2 per hour of labor.
36 The amortization is 3,250 quarterly, and remember that it does NOT imply cash outflow. 10 Cv (3)
All these indirect expenses are paid in cash in the corresponding quarter.
37
38 BUDGET FOR INDIRECT EXPENSES reference 1 2 3 4 TOTAL
39 Total labor hours date 3950 3600 4450 4100 16100
40 Labor applied, euros per hour date 2 2 2 2 2
41 Total gastos variables 7900 7200 8900 8200 32200
42 Fixed expenses date 6000 6000 6000 6000 24000
43 Fewer amortizations data 3250 3250 3250 3250 13000
Total indirect costs (euros) 10650 9950 11650 10950 43200

Variable administrative expenses on sales are €4 per unit including commissions, transport, and supplies.
All sales expenses, both fixed and variable, are paid in the same quarter, except for 1200 in taxes which are paid in the 3rd.

BUDGET OF SALES AND ADMINISTRATION EXPENSES reference 1 2 3 4 TOTAL

Expected sales, units given 800 700 900 800 3200
Sales and administrative expense per unit data 4 4 4 4 4 4 Cv (4)
Total variable expense 3200 2800 3600 3200 12800 45 Resumé
44 Fixed sales and administrative expenses
9 advertising data 1100 1100 1100 1100 4400
45 insurance data 2800 2800
25 office salaries date 8500 8500 8500 8500 34000
29 rental given 350 350 350 350 1400
34 taxes date 1200 1200
43 Total fixed costs for sales and administration 12750 9950 11150 9950 43800
46 Fixed and variable selling and administrative expenses 15950 12750 14750 13150 56600
47
48 A minimum cash balance of €5000 is desired at the end of each quarter.
49 Loans and returns are made in multiples of €500 and accrue an annual interest of 10%.
50 The interests are paid along with the repayment of capital.
51 Loans take place at the beginning of the trimester and returns at the end.
52 The initial cash balance is €10,000.
53 In the 2nd quarter, €24,300 is paid for the purchase of machinery, and €4,000 in taxes in the first quarter
54
TREASURY BUDGET reference 1 2 3 4 TOTAL

Initial cash balance the final previous period 10000 9401 5461 9106 10000
Customer billing (euros) date 54300 57120 66080 64960 242460
Available cash 64300 66521 71541 74066 252460
Total purchases paid (euros) data 4549 4560 4860 5113 19082
Total labor cost date 19750 18000 22250 20500 80500
Total indirect expenses (euros) data 10650 9950 11650 10950 43200
Fixed and variable selling and administrative expenses date 15950 12750 14750 13150 56600
Purchase of machinery date 24300 24300
Tax payment date 4000 4000
Total pagos 54899 69560 53510 49713 227682
Surplus (deficit) 9401 -3039 18031 24353 24778
Loan taken 8500 8500
Loan Returns 8500 8500
Interests 425 425
Total financing 0 8500 -8925 0 -425
Final cash balance 9401 5461 9106 24353 24353

BUDGETED RESULT ACCOUNT reference sums

Sales 3 : 1 and Pv 3200 x 80 256000
Variable expenses on sales 1 and Cv 3200 x 45 144000
MARGIN 112000
Indirect fixed costs 32 include amz 24000
Fixed expenses for sales and administration 42 43800
BAII: Earnings Before Interest and Taxes 44200
Financial expenses for interest 52 425
BNF: before taxes 43775
Taxes (20%) date 8755
BN or BDI 35020

From the initial balance, all are data, and they have already been used:
la tesorería inicial 10000(44);cuentas a cobrar 9500(4)y cuentas a pagar 2200(20)

BALANCE RECIEN TERMINADO / BALANCE INICIAL

Current assets Current liabilities
 Cash 10000 Accounts payable 2200
Accounts receivable 9500 Taxes to be paid 4000
Inventory of materials 474 6200
Inventory of finished goods 3280
23254
Fixed assets Fixed liabilities and equity
Terrains 50000 Ordinary shares 70000
Buildings and equipment 100000 Undistributed benefits 37054
Accumulated amortization -60000 107054
90000
113254 113254

BUDGETED BALANCE reference sums

Current assets
Cash 54 24353
Accounts receivable 4+3-9 23,040 Initial 9500 + sales 256000 - collections 242460
Inventory of materials data 500 250 kgs for raw material price 2
Inventory of finished goods date 4100 100 units per Cv finished products 41
51,993
Fixed assets
Land front balance 50000
Buildings and equipment previous +46 124300 Initial 100000 + machinery purchase 24300
Accumulated depreciation previous +13 -73000 Initial 60000 + exercise amortization 13000
101300
153,293
Current liabilities
Accounts payable 20 + 19 - 25 2464 Initial 2200 + raw material purchases 19346 - purchases paid 19082
Taxes to be paid cta budget exploitation 8755
11219
Fixed liabilities and equity
Ordinary shares anterior balance 70000
Undistributed profits previous + cta explodes 72074
142074
153293
lose

250 units.
 41 Partial CV
finished products
56.25%