Financial Planning & Budgeting Using Excel 2007: Computer Infinity (PVT.) LTD Karachi Branch Council 2009 - ICMAP
Financial Planning & Budgeting Using Excel 2007: Computer Infinity (PVT.) LTD Karachi Branch Council 2009 - ICMAP
Financial Planning & Budgeting Using Excel 2007: Computer Infinity (PVT.) LTD Karachi Branch Council 2009 - ICMAP
Planning Control
Developing Steps taken by
objectives for management to
acquisition ensure that
and use of objectives are
resources. attained.
Computer Infinity (Pvt.) Ltd
McGraw-Hill/Irwin Karachi©Branch
The McGraw-Hill
CouncilCompanies, Inc., 2002
2009 - ICMAP
Benefits
Benefits Derived
Derived from
from Budgeting
Budgeting
Enhanced managerial
responsibility
Coordination Performance
of activities Benefits evaluation
Assignment of decision
making responsibilities
M id d le M id d le
M anagem ent M anagem ent
S u p e r v is o r S u p e r v is o r S u p e r v is o r S u p e r v is o r
Cost of goods
Sales Production sold and ending
forecast schedule inventory
budgets
Budgeted
financial Capital Operating
budgets: expenditures expense
cash
budget budgets
income
balance sheet
Estimated Estimated
Unit Sales Unit Price
Sales Production
Budget Budget
t ed
e
pl
om
C
Production Production
Budget Budget
Units Material
t ed Purchases
e
pl
om
C
½ × $56,000 = $28,000
½ × $56,000 = $28,000
½ × $88,600 = $44,300
½ × $56,000 = $28,000
½ × $88,600 = $44,300
½ × $56,800 = $28,400
Computer Infinity (Pvt.) Ltd
McGraw-Hill/Irwin Karachi©Branch
The McGraw-Hill
CouncilCompanies, Inc., 2002
2009 - ICMAP
The
The Production
Production Budget
Budget
Production Production
Budget Budget
Units Labor
Material d
e
l et
p
om
C
Production Production
Budget Budget
Units Manufacturing
Material Overhead
Labor ted
e
pl
om
C
Production Selling
Budget and
Administrative
ed Expense
e t
pl Budget
om
C
Cash Budgeted
Budget Income
Statement
t ed
e
pl
om
C
Budgeted Budgeted
Income Balance
Statement Sheet
t ed
e
pl
om
C
Ellis
Ellis reports
reports the
the following
following account
account balances
balances
on
on June
June 30,
30, prior
prior to
to preparing
preparing its
its budgeted
budgeted
financial
financial statements:
statements:
Land - $50,000
Land - $50,000
Building (net) - $174,500
Building (net) - $174,500
Common stock - $200,000
Common stock - $200,000
Equipment (net) - $192,500
Equipment (net) - $192,500
Retained earnings - $148,150
Retained earnings - $148,150