Simple Budgeted Income Statement Format

Net Income comes from the budgeted income statement for the year of 855000.

Budgeted income statement format. In the budgeted income statement example above we can see that the actual profit for the period is about 8500 less than what was planned for. The budgeted income statement format A budgeted income statement starts with the budgeted sales that are taken from the sales budget. In most businesses this reporting format is confined to the income statement.

Selling and administrative expense budget. A budgeted income statement can be prepared from the data developed in. Net sales see below 950000 Less cost of goods sold see below 500000 Gross margin 450000 Less selling administrative expenses TM 9-12 260000 Net operating income 190000 Less interest expense TM 9-14 2000 Net income 188000.

It is compiled from a number of other budgets the accuracy of which may vary based on the realism of the inputs to the budget model. It is formatted exactly the same as an actual income statement but all of the values included are estimates based on past income statements. Ending finished goods inventory budget.

The budgeted income statement contains all of the line items found in a normal income statement except that it is a projection of what the income statement will look like during future budget periods. This was due to the income being 5400 less 100000 94600 and the expenses such as water and electricity being greater than expected. Select a format xlsx.

We recommend downloading this file onto your computer. The cost of goods sold on the income statement is calculated using the per unit cost of 1125 which consists of 140 per unit for direct materials 700 per unit for direct labor and a manufacturing overhead rate of 285. Example of Budgeted Income Statement.

The budgeted or pro forma income statement is prepared after the operating budgets have been completed. Shares Share on Facebook. All these figures will be computed at the end of the budgeted period for analysis.