Scribd
Upload
6 views8 pages

Monthly Sales and Budget Forecasts

This document presents a detailed monthly budget for a company that includes: 1) sales, collections, purchases, and payments budgets; 2) administrative and sales expenses; 3) depreciation; 4) projected cash flow; and 5) projected income statement. Sales, purchases, revenues, and expenses increase by 10% each month, and the budget covers the months from January to April.

Translated by

ScribdTranslations
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
6 views8 pages

Monthly Sales and Budget Forecasts

This document presents a detailed monthly budget for a company that includes: 1) sales, collections, purchases, and payments budgets; 2) administrative and sales expenses; 3) depreciation; 4) projected cash flow; and 5) projected income statement. Sales, purchases, revenues, and expenses increase by 10% each month, and the budget covers the months from January to April.

Translated by

ScribdTranslations
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Solution:

Sales budget:
Note: sales start at 100 units in January and then go
increasing by 10%.

January February March April


Units 100 110 121 133
Selling price $20 $20 $20 $20
TOTAL $2000 $2200 $2420 $2662

2. Budget of collections (from accounts receivable)


Note: from the sales of US$2,000 made in January, we collected US$1,200.
(60%) in cash, and US$800 (40%) the following month (30-day credit); it
same for the other months.

January February March April


Cash (60%) $1200 $1320 $1452 $1597.20
Credit (40%) $800 $880 $968
TOTAL $1200 $2120 $2332 $2565.20
3. Purchase budget
Note: each month the same amount is bought as is sold (there is no
final inventory.

January February March April


Units 100 110 121 133
Price of
$14 $14 $14 $14
purchase
TOTAL $1400 $1540 $1694 $1863.40

4. Payment budget (accounts payable)


Note: of the purchases of US$1,400 made in January, we paid US$700.
(50%) in cash, and US$700 (50%) the following month (30-day credit); what
same for the other months.

January February March April


Paid in full (50%) 700 770 847 931.70
Credit (50%) 700 770 847
TOTAL 700 1470 1617 1778.70
5. Budgets for administrative expenses

January February March April


Remunerations $50 $50 $50 $50
Rental of the premises $20 $20 $20 $20
Insurance $5 $5 $5 $5
Cleaning and maintenance $10 $10 $10 $10
Basic services $10 $10 $10 $10
Office supplies $5 $5 $5 $5
TOTAL $100 $100 $100 $100

6. Sales expense budgets


January February March April
Remunerations $40 $40 $40 $40
Commissions $5 $5 $5 $5
Freight $5 $5 $5 $5
Promotion and advertising $20 $20 $20 $20
TOTAL $70 $70 $70 $70
7. Depreciation

January February March April


Furniture $10 $10 $10 $10
Computation $5 $5 $5 $5
TOTAL $15 $15 $15 $15

8. Cash budget (projected cash flow)


January February March April
INCOME
Accounts Receivable $1200 $2120 $2332 $2565
TOTAL INCOME $1200 $2120 $2332 $2565

EXPENSES
Accounts payable $700 $1470 $1617 $1778.70
Administrative expenses $100 $100 $100 $100
Sales expenses $70 $70 $70 $70
Tax payment $8.30 $9.50 $10.82 $12.27
TOTAL EGRESOS $878.30 $1649.50 $1797.82 $1960.97

CASH FLOW $321.70 470.50 $534.18 $604.23


9. Operating budget (projected income statement)

January February March April


Sales $2000 $2200 $2420 $2662
Cost of sales $1400 $1540 $1694 $1863.40

GROSS PROFIT $600 $660 $726 $798.60

Administrative expenses $100 $100 $100 $100

Sales expenses $70 $70 $70 $70

Depreciation $15 $15 $15 $15

UTILITY BEFORE
$415 $475 $541 $613.60
OF IMP.

Taxes (2%) $8.30 $9.50 $10.82 $12.27

NET INCOME $406.70 $465.50 $530.18 $601.33

You might also like