1. Budgeting Revision for Test

2. Budgeting is estimating what will happen next month or quarter

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

4. 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

5. 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

6. 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

7. 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

8. 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 beginning32009630 Bank at end9630

9. Repeat for the next month Estimated ReceiptsJanuaryFebruaryMarch Cash Sales1450014850 Total Receipts1450014850 Less Estimated Payments Wages21004850 Advertising300400 Cleaning Expenses320 Stock20002200 Office Expenses100 Payments to Creditors3250 Total Payments807011120 Cash Flow for the quarter64303730 Bank at beginning3200963013360 Bank at end963013360

10. And then the final month Estimated ReceiptsJanuaryFebruaryMarch Cash Sales145001485014600 Total Receipts145001485014600 Less Estimated Payments Wages210048505100 Advertising300400500 Cleaning Expenses320 Stock200022002400 Office Expenses100 Payments to Creditors3250 Total Payments80701112011670 Cash Flow for the quarter643037302930 Bank at beginning3200963013360 Bank at end96301336016290

11. 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).

12. Test on Budgeting Will be on XXth August 20XX