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 |
