Financial Budgets Forecasting

Creating Forecasted Financial Budgets

Before you can begin forecasting your own financial statements you must collect and develop various pieces of information. This information will be organized into Financial Budgets (14 budgets in all).

This section will assist you in developing the Budgets required for creating your forecasted financial statements. By going through this process, you will gain more knowledge and confidence in your proposed business endeavors and save a great deal of time as well. Below lists the fourteen (14) Financial Budgets you’ll need to complete in order to create your Forecasted Financial Statements. Remember, we will be referring to Business Case Study example when creating the following forecasted financial budgets.

• Budget 1 Selling Price & Product Cost (per unit)
• Budget 2 Sales Budget
• Budget 3 Purchase Budget
• Budget 4 Direct Manufacturing Labor Budget
• Budget 5 Manufacturing Factory Overhead Budget
• Budget 6 Ending Inventory Budget
• Budget 7 Cost of Goods Sold Budget
• Budget 8 Fixed Asset Budget
• Budget 9 Operating Expenses Budget
• Budget 10 Drawings or Dividend Budget
• Budget 11 Cash Investment Budget
• Budget 12 Opening Balance Sheet
• Budget 13 Interest Expense Budget
• Budget 14 Income Tax Rate and Budget

 
After the above Financial Budgets have been developed, you will use them to create your own Forecasted Cash Flow Statement, Income Statement, Balance Sheet, Break-even Point, Sensitivity Analysis, Ratio Analysis, and Notes to the Forecasted Financial Statements.