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