1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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