Budget Example

The following example shows some of the common elements of a Budget.


Sample Company
Budget
January 1, xxxx to December 31, xxxx
Category
Actual
Budget
Difference
Inflows  
Net Sales 385,400 300,000 85,400
 
Cost of Goods  
 Merchandise Inventory, January 1 160,000 160,000 0
 Purchases 120,000 90,000 30,000
 Freight Charges   2,500   2,000   500
 Total Merchandise Handled 282,500 252,000 30,500
 
 Less Inventory, December 31 100,000 120,000 (20,000)
 
  Cost of Goods Sold 182,500 132,000 50,500
 
  Gross Profit 202,900 168,000 34,900
 
Interest Income  500  700  (200)
Total Income 202,500 168,700 33,800
 
Expenses      
Salaries 68,250 45,000 23,250
Utilities 5,800 4,500 1,300
Rent 23,000 23,000 0
Office Supplies 2,250 3,000 (750)
Insurance 3,900 3,900 0
Advertising 8,650 9,000 (350)
Telephone 2,700 2,300 400
Travel and Entertainment 2,550 2,000 550
Dues & Subscriptions 1,100 1,000 100
Interest Paid 2,140 2,500 (360)
Repairs & Maintenance 1,250 1,000 250
Taxes & Licenses 11,700 10,000 1,700
Total Expenses 133,290 106,850 26,440
 
Net Income $69,210 $61,850 $7,360