Budgeting Revision for Test. Budgeting is estimating what will happen next month or quarter.

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Presentation transcript:

Budgeting Revision for Test

Budgeting is estimating what will happen next month or quarter

Record the Anticipated Receipts and total them Estimated ReceiptsJanuaryFebruaryMarch Cash Sales14500 Total Receipts14500 Less Estimated Payments

Record the Anticipated Payments and total them Estimated ReceiptsJanuaryFebruaryMarch Cash Sales14500 Total Receipts14500 Less Estimated Payments Wages2100 Advertising300 Cleaning Expenses320 Stock2000 Office Expenses100 Payments to Creditors3250 Total Payments8070

Calculated Cash Flow by subtracting the Total Payments from the Total Receipts Estimated ReceiptsJanuaryFebruaryMarch Cash Sales14500 Total Receipts14500 Less Estimated Payments Wages2100 Advertising300 Cleaning Expenses320 Stock2000 Office Expenses100 Payments to Creditors3250 Total Payments8070 Cash Flow for the quarter6430

Add in the Bank at Beginning Estimated ReceiptsJanuaryFebruaryMarch Cash Sales14500 Total Receipts14500 Less Estimated Payments Wages2100 Advertising300 Cleaning Expenses320 Stock2000 Office Expenses100 Payments to Creditors3250 Total Payments8070 Cash Flow for the quarter6430 Bank at beginning3200 Bank at end

Add the Cash Flow for the quarter to the Bank at beginning to get Bank at end Estimated ReceiptsJanuaryFebruaryMarch Cash Sales14500 Total Receipts14500 Less Estimated Payments Wages2100 Advertising300 Cleaning Expenses320 Stock2000 Office Expenses100 Payments to Creditors3250 Total Payments8070 Cash Flow for the quarter6430 Bank at beginning3200 Bank at end9630

Transfer Bank at end to Bank at start Estimated ReceiptsJanuaryFebruaryMarch Cash Sales14500 Total Receipts14500 Less Estimated Payments Wages2100 Advertising300 Cleaning Expenses320 Stock2000 Office Expenses100 Payments to Creditors3250 Total Payments8070 Cash Flow for the quarter6430 Bank at beginning Bank at end9630

Repeat for the next month Estimated ReceiptsJanuaryFebruaryMarch Cash Sales Total Receipts Less Estimated Payments Wages Advertising Cleaning Expenses320 Stock Office Expenses100 Payments to Creditors3250 Total Payments Cash Flow for the quarter Bank at beginning Bank at end

And then the final month Estimated ReceiptsJanuaryFebruaryMarch Cash Sales Total Receipts Less Estimated Payments Wages Advertising Cleaning Expenses320 Stock Office Expenses100 Payments to Creditors3250 Total Payments Cash Flow for the quarter Bank at beginning Bank at end

Now make sure you have completed: Budgeting Exercise – hand in Bloomin’ Florests Budgeting Homework Yassmin Travel and Tours. Tom’s House of Horror – if you’ve finished all the exercises. Something to take home and study for the Budgeting Test e.g. Tom’s House of Horror or Pauline’s – photocopy (available up the front).

Test on Budgeting Will be on XXth August 20XX