Budgeted Income Statements/SOFP

Question 1

What workings may you need to do in order to create a budgeted income statement

Answer 1

Last years selling price
This years selling price

Expected no of units to be sold

Next years budgeted revenue

Last years purchase price
This years purchase price

Units and value of next years opening inventory
Closing inventory and units

Updated purchase figure

Question 2

How to calculate last years selling price

Answer 2

Revenue (£) / Revenue (Units)

Question 3

How to calculate expected no of units

Answer 3

Revenue (units) x increase/decrease in no of sales

Question 4

How to calculate this years selling price

Answer 4

Last years selling price X increase/decrease in unit selling price

Question 5

How to calculate next years budgeted revenue

Answer 5

Expected no of units to be sold (revenue units) X this years selling price

Question 6

How to calculate last years purchase price

Answer 6

Purchase (£) / Purchase (Units)

Question 7

How to calculate this years purchase price

Answer 7

Last years purchase price + increase of unit purchase price

Question 8

How to calculate opening inventory

Answer 8

From the closing inventory of last years budgeted income statement

Question 9

How to calculate closing inventory

Answer 9

Units from last year x % decrease in purchase selling price x this years purchase price