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.

Since Murray decided to have the checks printed on July 1, his 200X Forecasted Cash Flow Statement will show a Cash Outflow of $75 in July only. In addition, his 200X Forecasted Income Statement will show a "Printing of Checks Expense" totaling $75.

In 200Y, Murray doesn't suspect he'll need to print any more checks. As a result, his 200Y Forecasted Income Statement and 200Y Forecasted Cash Flow Statement are NOT affected or altered.

Categories: Forecasting