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based on this calculation What are the benefits of preparing a budget and comparing it to actual results later? Prepration Operating Budget forecast for 2020

based on this calculation

What are the benefits of preparing a budget and comparing it to actual results later?

Prepration Operating Budget forecast for 2020 and 2021
Actual 2019 FCT 2020 FCT 2021
Industry Market Share 10,00,000.00 20% 15,00,000.00 20% 17,50,000.00 20%
% of Sale
Sales 2,00,000.00 3,00,000.00 3,50,000.00
Material 25% 50,000.00 75,000.00 87,500.00
Labour 35% 70,000.00 1,05,000.00 1,22,500.00
Factory Overhead 20% 40,000.00 60,000.00 70,000.00
80% 1,60,000.00 2,40,000.00 2,80,000.00
Gross Profit 20% 40,000.00 60,000.00 70,000.00
Selling 5% 10,000.00 15,000.00 17,500.00
Corporate Overhead 10% 20,000.00 30,000.00 35,000.00
Operating Profit(OP) 5% 10,000.00 15,000.00 17,500.00
Taxes(% of OP) 25% 2,500.00 3,750.00 4,375.00
Net Income 3.75% 7,500.00 11,250.00 13,125.00
% of Sale
Cash 5.00% 10,000.00 15,000.00 17,500.00
Accounts Receivable 20.00% 40,000.00 60,000.00 70,000.00
Inventory 10.00% 20,000.00 30,000.00 35,000.00
Fixed Assets 100.00% 2,00,000.00 3,00,000.00 3,50,000.00
Total 2,70,000.00 4,05,000.00 4,72,500.00
Account Payable 10% 20,000.00 30,000.00 35,000.00
Debt Plug to Balance 1,20,000.00 2,33,750.00 2,83,125.00
Common Stock Fixed 1,20,000.00 1,20,000.00 1,20,000.00
Opening RE 2,500.00 10,000.00 21,250.00
Net Income 7,500.00 11,250.00 13,125.00
Total 2,70,000.00 4,05,000.00 4,72,500.00

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