Budgeted Income Statement

06/04/2011 14:38

 

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
    ======