Budgeted Income Statement:
Definition and Explanation:
A budgeted income statement can be
prepared from the data developed in:
The budgeted income statement is one of the
key schedules in the budget process.
It shows the company's planned profit for the
upcoming budget period, and it stands as a
benchmark against which
subsequent company performance can be measured.
Example | Sample of Budgeted Income Statement:
Following schedule contains the budgeted
income statement for Hampton Freeze Inc.
|
Hampton
Freeze Inc.
Budgeted Income Statement
For the Year Ended December 31, 2009 |
| |
Other
Budgets References |
|
|
Sales |
Sales budget |
$2,000,000 |
|
Less cost of goods sold* |
Sales budget,
Ending finished goods inventory budget |
1,300,000 |
| |
|
-------------- |
|
Gross margin |
|
700,000 |
|
Less selling and administrative expenses |
Selling and administrative expense budget |
577,800 |
| |
|
-------------- |
|
Net operating income |
|
122,200 |
|
Less interest expense |
Cash budget |
14,000 |
| |
|
-------------- |
|
Net income |
|
$108,200 |
| |
|
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|
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