Samples and Examples

Cash from Product Sales Example Note

Cash from Product Sales:

The Company is assuming that payment, in full, will be received by each client.  Therefore, we will have no accounts receivable.  In other words, the timing of cash coming into the business from sales each month will be the result of the number of units expected to sell each month multiplied by the weighted average selling price.

Example of Dividends

NOTE 28 - DIVIDENDS PAID

The Company has forecasted the following dividends to be paid in November of each year:

Example of Internet Expense

NOTE 14 - INTERNET STORAGE AND ACCOUNTS

This account represents the costs associated with storing the training information on an Internet server and the costs associated with purchasing three (3) Internet assess accounts for our workers. These are presented below.

Example of Advertizing Expense - Note 3

NOTE 3 - ADVERTISING EXPENSE

The Company's advertising budget has been established as follows:

Example of Interest Expense on Loan | Note 13

NOTE 13 - INTEREST EXPENSE FROM LOAN

In December 200W, the Company will receive a $20,000 loan to help finance the initial product development costs. An annual interest rate of 10% has been applied to the loan, thus resulting in an interest expense of $2,000. Below shows the balances in the interest expense account during the forecasted periods.

Example of Amortizing Development Costs

NOTE 19 - AMORTIZATION OF FUTURE DEVELOPMENT COSTS

Future Development Costs refer to costs that are expected to be spent in researching and developing future products. Below provides a listing of the Company's budgeted R&D.

Example of Ending Cash Balance

NOTE 21 - ENDING CASH BALANCE

The following chart summarizes the ending cash balances at various dates throughout the forecasted period.

Example of Revenue from Sales - Assumption 1

NOTE 1 - TOTAL REVENUE FROM SALES

The following chart depicts the figures used in calculating the Company's Total Revenue from Sales:

Example of Depreciating computer equipment

NOTE 16 - COMPUTER EQUIPMENT & ACCESSORIES

A variety of computer equipment and computer accessories has been budgeted at various stages throughout the forecasted period. The following equipment budget is allotted to the computer equipment account.

Cash Outflows Example for J&B Incorporated

NOTE 27 - CASH OUTFLOWS FROM PRODUCT COSTS

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