Chapter 5 Budgeted financial statements Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Budgeted financial statements Statement of financial performance Statement of financial position Cash flow statement The above budgets summarise the forecasts made in all other budgets. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Budgeted statement of financial performance is a summary of the following budgets Sales and/or fees Cost of goods sold Operating expenses marketing administration financial This budget is not affected by GST accounts. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Budgeted statement of financial position This budget is prepared from asset, liability and owners equity accounts. If GST payable is >GST input tax credits, the net GST payable is shown as a current liability. If GST payable is <GST input tax credits, the net GST input tax credit is shown as a current asset. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Preparation of statement of financial position Examples of the information needed: Net profit or loss Accounts receivable balance Accounts payable balance Pattern of paying expenses Rates and methods of depreciation Any acquisition or disposal of assets Any drawings made by the owner Any capital contributions made by the owner Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Budgeted statement of cash flows Is a cash budget in a format that complies with either AAS28 or AASB1026. If the GST payable is >input credits receivable in the relevant period the resultant amount is paid to the ATO. If the GST payable is <input credits receivable in the relevant period the resultant amount will be refunded by the ATO. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

The budgeted cash flow statement is divided into 3 main categories Operating activities: provision of goods and services. Investing activities: acquisition and disposal of non-current assets. Financial activities: changes to the financial structure of the business. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Classification of cash inflows outflows employees Sale of G &S Suppliers of stock Operating activities Interest received Other expenses Creditors for interest Dividends received Government For taxes Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Classification of cash inflows outflows Collection of loans Giving loans Investing activities Sale of non-current assets Purchase of non-current assets Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Classification of cash inflows outflows Sale of shares Buy back shares Financing activities Pay dividends Borrowings Repay debt Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Budgeted statement of cash flows for period ended... Cash flows from operating activities: Net cash inflow (outflow) from operating activities Cash flows from investing activities: Net cash inflow (outflow) from investing activities $ $ Cash flows from financing activities: Net cash inflow (outflow) from financing activities Net increase (decrease) in cash held Cash at beginning of period Cash at end of period Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld