that's all that is given cash 8000 accts revievable 44000 raw materials inv 5000 finished Inv 12000 acct pay 17000

Why Budget? 1. Conces mangement teces 2. way to formalize a plan 3. Benchmark Eral 4. Motivating factor 5. Coordinates company Sales Forecasting Methods: 1. Trend Analysis Composite of Various Top Management Executives Expectations 3. Composite of Experts from outside of firm) Expectations 4. Composite of Sales Force's Expectations Survey of Buyer Intentions The Master Budget (see diagram on separate sheet) Example Master Budget: Assume Selected Balance Sheet Items, December 31, Year 5: Cash $ 8.000 Accounts Receivable 44,000 Raw Materials inventory 5,000 (1.000 lbs @ $5) Finished Goods Inventory 12.000 (400 units @ $30) Accounts Payable 17,000 Iso note the company uses a FIFO system which assumes the oldest units are sold first.) The Sales Budget: Quarter #1 Quarter #2 Quarter #3 Quarter #4 Quarter #5 * 45 X 45 X 45 X 45 X 45 Expected Sales in Units Selling Price Per Unit Total Sales 2. The Production Budget: Quarter #1 Quarter #2 Quarter #3 Quarter #4 1 TI 1 1 1 Expected Sales in Units Add Desired Ending Finished Goods Inventory -- Total Needs (units) Less Expected Beginning Finished Goods Inventory Units to be produced 1 1 1 1 Why Budget? 1. Conces mangement teces 2. way to formalize a plan 3. Benchmark Eral 4. Motivating factor 5. Coordinates company Sales Forecasting Methods: 1. Trend Analysis Composite of Various Top Management Executives Expectations 3. Composite of Experts from outside of firm) Expectations 4. Composite of Sales Force's Expectations Survey of Buyer Intentions The Master Budget (see diagram on separate sheet) Example Master Budget: Assume Selected Balance Sheet Items, December 31, Year 5: Cash $ 8.000 Accounts Receivable 44,000 Raw Materials inventory 5,000 (1.000 lbs @ $5) Finished Goods Inventory 12.000 (400 units @ $30) Accounts Payable 17,000 Iso note the company uses a FIFO system which assumes the oldest units are sold first.) The Sales Budget: Quarter #1 Quarter #2 Quarter #3 Quarter #4 Quarter #5 * 45 X 45 X 45 X 45 X 45 Expected Sales in Units Selling Price Per Unit Total Sales 2. The Production Budget: Quarter #1 Quarter #2 Quarter #3 Quarter #4 1 TI 1 1 1 Expected Sales in Units Add Desired Ending Finished Goods Inventory -- Total Needs (units) Less Expected Beginning Finished Goods Inventory Units to be produced 1 1 1 1