- Writing a Business Plan
- Financial Statements
- Business Forecasting
- Business Checklist
Promotional Pamphlet - from Operating Expense Budget
Murray feels he should develop pamphlets explaining his business and the product he intends to sell. After a great deal of analysis, Murray decides to hire "Communication's Plus" on July 1, 200X to design and create 2,000 high quality pamphlets. The quotation provided by Communication's Plus indicated each pamphlet would cost $2.00. Therefore, his total Promotional Pamphlet Expense for 200X, appearing on his 200X Forecasted Income Statement, will be $4,000 (2,000 pamphlets x $2.00 each). The quotation also stated that payment is due in full before any pamphlets are designed or created. Therefore, Murray must pay $4,000 on July 1, 200X (the date he plans to "hire" the firm). As a result, his 200X Forecasted Cash Flow Statement would show a Cash Outflow of $4,000 for Promotional Pamphlets in the month of July.
Murray feels he will need an additional 1,000 promotional pamphlets in February 200Y. He assumes the price will not change from the original quoted price of $2.00 each. Since, no other pamphlets will be purchased in 200Y (other than the ones stipulated above), his total Promotional Pamphlet Expense for 200Y will be $2,000 (1,000 pamphlets x $2.00). In addition, Murray 200Y Forecasted Cash Flow Statement will show a Cash Outflow of $2,000 in the month of February for Promotional Pamphlets.