Budgeted Financial Statements

Question 1

Budgeted Income Statement

Answer 1

1. Budgeted Sales Revenue
   COST OF SALES
2. Opening Inventory
3. Direct Materials Cost
4. Direct Labour Cost
5. Variable Production Overhead
6. Less Closing Inventory
7. Total Cost of Sales (Add steps 2-6)
8. Gross Profit (1 - 7)
    OVERHEADS
9. Sales & Marketing cost
10. Administration cost 
11. Premises cost
12. Depreciation cost
13. Total Overheads (Add 9 - 12)
14. Net Profit / (Loss) (8 - 13)

Question 2

Budgeted Statement of Financial Position

Answer 2

NON CURRENT ASSETS
1. Equipment
2. Plant & Machinery
CURRENT ASSETS
3. Inventory
4. Receivables
5. Total Assets (Add 1 - 4)
LIABILITIES & EQUITY
CURRENT LIABILITIES
6. Bank Overdraft
7. Payables
8. Opening Equity
TOTAL EQUITY & LIABILITIES (Add 6 - 8)