Intro to Master Budget

Slide Show #4 Intro to Master Budget AGEC 489/689 Spring 2009 Master Budget Preparation • Annual operating budgets – – – – – – Sales budget: number of units sold Production budget: output and inventory Direct materials budget: materials used Direct labor budget: labor used Other budgets: selling and administrative Inputs to preparing the cash budget • Other annual budgets and statements – – – – Capital expenditure budget Preparing budgeted cash flow statement Preparing budgeted income statement Preparing budgeted year end balance sheet Sales Budget Sales Budget Production Budget Sales Budget Production Budget Direct Materials Budget Direct Labor Budget Overhead Budget Sales Budget Production Budget Direct Materials Budget Direct Labor Budget Overhead Budget Selling and Administrative Expense Budget Sales Budget Production Budget Direct Materials Budget Direct Labor Budget Overhead Budget Selling and Administrative Expense Budget Capital Expenditure and Cash Budgets Sales Budget Production Budget Direct Materials Budget Direct Labor Budget Overhead Budget Selling and Administrative Expense Budget Capital Expenditure and Cash Budgets Budgeted Cash Flow Statement Sales Budget Production Budget Direct Materials Budget Direct Labor Budget Overhead Budget Selling and Administrative Expense Budget Capital Expenditure and Cash Budgets Budgeted Cash Flow Statement Budgeted Income Statement Sales Budget Production Budget Direct Materials Budget Direct Labor Budget Overhead Budget Selling and Administrative Expense Budget Capital Expenditure and Cash Budgets Budgeted Cash Flow Statement Budgeted Income Statement Budgeted Balance Sheet