Budgeted Income Statement


Budgeted Income Statement:

Definition and Explanation:

A budgeted income statement can be prepared from the data developed in:

The budgeted income statement is one of the key schedules in the budget process.

It shows the company’s planned profit for the upcoming budget period, and it stands as a benchmark against which subsequent company performance can be measured.

Example | Sample of Budgeted Income Statement:

Following schedule contains the budgeted income statement for Hampton Freeze Inc.

Hampton Freeze Inc.
Budgeted Income Statement
For the Year Ended December 31, 2009

Other Budgets References

Sales Sales budget $2,000,000
Less cost of goods sold* Sales budget, Ending finished goods inventory budget 1,300,000
————–
Gross margin 700,000
Less selling and administrative expenses Selling and administrative expense budget 577,800
————–
Net operating income 122,200
Less interest expense Cash budget 14,000
————–
Net income $108,200
======

You may also be interested in other articles from “Budgeting and planning” chapter:

  1. Profit Planning
  2. Participative or Self Imposed budgeting
  3. Human Factors in Budgeting
  4. Zero Based Budgeting (ZBB)
  5. Budget Committee
  6. Master Budget
  7. Sales Budget
  8. Production Budget
  9. Inventory Purchases Budget for a Merchandising Firm
  10. Material Budgeting | Direct Materials Budget
  11. Labor Budget
  12. Manufacturing Overhead Budget
  13. Ending Finished Goods Inventory Budget
  14. Selling and Administrative Expense Budget
  15. Cash Budget
  16. Budgeted Income Statement
  17. Budgeted Balance Sheet
  18. International Aspects of Budgeting

Other Related Accounting Articles:

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