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.

In January of 200Y, Murray plans to replenish his office supplies by purchasing $3,000 worth. Since no other additional office supplies are scheduled to be purchased during 200Y, Murray's 200Y Forecasted Cash Flow Statement will show a Cash Outflow of $3,000 in January for office supplies. And since Murray expects these office supplies to be fully "used-up" or consumed by December 31, 200Y (year end), his 200Y Forecasted Income Statement will show an "Office Supplies Expense" of $3,000.