Forecasting

Forecast Selling Prices and Product Costs

BUDGET 1  -  DETERMINING YOUR SELLING PRICE & PRODUCT COST

In this Budget, you will determine your selling price (s) and your cost to purchase or produce each product you plan to sell. In other words, Budget 1 consists of Two Parts, namely,

Part 1 -  Determine your Selling Price (s) Per Unit for each forecasted year; and
Part 2 -  Determine your Total Product Cost (s) Per Unit for each forecasted year

Categories: Forecasting

Example of Office Supplies Expense

Office Supplies Expense - from Operating Expense Budget

In July of 200X, Murray plans to purchase office supplies valued at $2,500. Therefore, his 200X Forecasted Cash Flow Statement will show a Cash Outflow of $2,500 in July  for office supplies. Since Murray expects these supplies to be fully "used-up" or consumed by December 31, 200X (Murray's year end), his 200X Forecasted Income Statement will show an "Office Supplies Expense" of $2,500.

Categories: Forecasting

How to Calculate Your Income Tax Rate

BUDGET 14  -  DEVELOPING YOUR INCOME TAX RATE & BUDGET

Categories: Forecasting

Sales Budget - Part 5

Part 5   -  Determine When Customers Will Pay You

Categories: Forecasting

Example of Employer Costs

Employer Costs - from Operating Expense Budget

Categories: Forecasting

Components of a Sensitivity Analysis

Three Components of Murray's Sensitivity Analysis:

1. THE HEADING
Notice the "Heading" of the Sensitivity Analysis depicts the name of the company (Scholarship Information Services), the type of statement to follow (Sensitivity Analysis) and the date of the analysis (for the year ending December 31, 200X).

SCHOLARSHIP INFORMATION SERVICES
SENSITIVITY ANALYSIS
FOR YEAR ENDING DECEMBER 31, 200X

 

Categories: Forecasting

Example of Printing Checks Expense

Printing of Checks Expense - from Operating Expense Budget

Murray visited his bank and asked one of the clerks "how much would it cost to purchase 250 business checks"? The clerk indicated that many styles exist, each having a different cost. Murray looked at the various samples of checks and selected a set that cost $75.00.

Categories: Forecasting

Example for Calculating Income Taxes

Income Taxes

The Income Tax a company pays is made up of state/provincial tax & federal tax.  It is calculated by applying an Income Tax Rate or percentage (%) to a company's Earnings Before Taxes.

Categories: Forecasting

Drawings and Dividends Budget

BUDGET 10  -  DRAWINGS AND DIVIDENDS BUDGET

Categories: Forecasting

Sales Budget - Part 6

Part 6  -  Determine Your Forecasted Accounts Receivable

Categories: Forecasting
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