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