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Sample Budget of a Manufacturing Company

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					<Company Name> Annual Operating Budget for Manufacturing Companies—Inputs and Assumptions
<Year>

General Notes and Assumptions
<Document key financial planning assumptions here.>

Key Model Inputs

1. Fringe Rate for Labor 2. Number of Years for Straight-Line Depreciation of Capital Assets 3. Tax Rate 4. Annual Financial Plan Revenue per Employee

25% 5

30% $225,000

Year 2007 Annual Operating Budget for Manufacturing Companies—Expenses by Business Unit
Xerox Manufacturing Company
Gray cells are calculated for you and generally should not be altered. All currency amounts are in thousands.

Business Unit Budgets—Operations, Sales and Marketing, and General and Administrative
A. Operations and Capital Budgets Operations Expenses: Labor Fringe benefits (benefits, training, etc.) Depreciation Supplies General and miscellaneous Total Operations Expenses Operations Head Count Analysis by Role: Vice president Director Operations manager Operations analyst TBD TBD Total Operations Head Count Operations Labor Expense Breakdown by Role: Vice president Director Operations manager Operations analyst TBD TBD Total Operations Labor Expense CAPITAL ASSETS AND EQUIPMENT Machinery and equipment IT (servers, network hardware, etc.) Other capital equipment Total Capital Equipment Depreciation Base B. Sales and Marketing Sales and Marketing Expenses: Labor Fringe benefits (benefits, training, etc.) Marketing programs Public relations Travel and entertainment Supplies General and miscellaneous Beginning Balance $350.00 30.00 25.00 $405.00 $405.00 Annual Cost $150.00 120.00 90.00 75.00 0.00 0.00 Q1 $491.25 122.81 20.50 25.00 25.00 $684.56 Q2 $543.75 135.94 22.25 25.00 25.00 $751.94 Q3 $562.50 140.63 21.63 25.00 25.00 $774.75 Q4 $592.50 148.13 23.38 25.00 25.00 $814.00 Annual Total $2,190.00 547.50 87.75 100.00 100.00 $3,025.25 NOTES
See Operations Labor Expense Breakdown by Role Calculation based on labor and input sheet Depreciation amounts based on depreciation base Annual total should equal financial plan target. Annual total should equal financial plan target.

Number of Full-Time Employees (FTEs) 1.00 1.00 1.00 1.00 2.00 3.00 3.00 4.00 5.00 6.00 6.00 6.00 15.00 15.00 16.00 16.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 23.00 25.00 26.00 27.00 Q1 $37.50 60.00 112.50 281.25 0.00 0.00 $491.25 Q1 $5.00 0.00 0.00 $5.00 $410.00 Q2 $37.50 90.00 135.00 281.25 0.00 0.00 $543.75 Q3 $37.50 90.00 135.00 300.00 0.00 0.00 $562.50 Q4 $37.50 120.00 135.00 300.00 0.00 0.00 $592.50

NOTES 1.00 4.00 6.00 16.00 0.00 0.00 27.00 Annual Total $150.00 360.00 517.50 1,162.50 0.00 0.00 $2,190.00 Annual Total $375.00 55.00 37.50 $467.50 $467.50 NOTES NOTES

Q2 Q3 Q4 Purchases (Dispositions) $25.00 ($20.00) $15.00 5.00 5.00 15.00 5.00 2.50 5.00 $35.00 ($12.50) $35.00 $445.00 $432.50 $467.50

Q1 $746.25 186.56 75.00 15.00 150.00 25.00 25.00

Q2 $833.75 208.44 50.00 15.00 150.00 25.00 25.00

Q3 $852.50 213.13 65.00 15.00 160.00 25.00 25.00

Q4 $915.00 228.75 70.00 15.00 160.00 25.00 25.00

Annual Total $3,347.50 836.88 260.00 60.00 620.00 100.00 100.00

NOTES

Rev: 6/8/2009

Total Sales and Marketing Expenses Sales and Marketing Head Count Analysis by Role: Vice president Director Marketing and product managers Marketing analysts Sales representatives Account managers Customer service TBD Total Sales and Marketing Head Count Sales and Marketing Labor Expense Breakdown by Role: Vice president Director Marketing and product managers Marketing analysts Sales representatives Account managers Customer service TBD Total Sales and Marketing Labor Expense C. General and Administrative General and Administrative Expenses: Labor Fringe benefits (benefits, training, etc.) Other depreciation Rent Insurance Professional services Dues and subscriptions Bank charges Telephone Recruiting Postage Interest Administrative—travel and entertainment Administrative—other supplies Miscellaneous Total General and Administrative Expenses General and Administrative Head Count Analysis by Role: Chief executive officer Chief financial officer Chief information officer Vice president of human resources Administrative staff Human resources director Human resources staff Information technology director Information technology manager Information technology analyst Annual Cost $150.00 120.00 110.00 75.00 130.00 110.00 75.00 0.00

$1,222.81

$1,307.19

$1,355.63

$1,438.75

$5,324.38

Number of Full-Time Employees (FTEs) 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 5.00 6.00 6.00 6.00 3.00 3.00 3.00 3.00 8.00 9.00 9.00 10.00 3.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 0.00 0.00 0.00 0.00 27.00 30.00 31.00 33.00 Q1 $75.00 60.00 137.50 56.25 260.00 82.50 75.00 0.00 $746.25 Q2 $75.00 60.00 165.00 56.25 292.50 110.00 75.00 0.00 $833.75 Q3 $75.00 60.00 165.00 56.25 292.50 110.00 93.75 0.00 $852.50 Q4 $75.00 90.00 165.00 56.25 325.00 110.00 93.75 0.00 $915.00

2.00 3.00 6.00 3.00 10.00 4.00 5.00 0.00 33.00 Annual Total $300.00 270.00 632.50 225.00 1,170.00 412.50 337.50 0.00 $3,347.50 NOTES

Q1 $613.75 153.44 40.00 0.00 12.00 10.00 5.00 2.00 25.00 20.00 10.00 10.00 15.00 25.00 2.00 $943.19

Q2 $613.75 153.44 40.25 0.00 12.00 20.00 5.00 2.00 25.00 20.00 10.00 10.00 15.00 25.00 3.00 $954.44

Q3 $613.75 153.44 40.50 0.00 12.00 10.00 5.00 2.00 25.00 20.00 10.00 10.00 15.00 25.00 4.00 $945.69

Q4 $646.25 161.56 40.50 0.00 12.00 10.00 5.00 2.00 25.00 20.00 10.00 10.00 15.00 25.00 5.00 $987.31

Annual Total $2,487.50 621.88 161.25 0.00 48.00 50.00 20.00 8.00 100.00 80.00 40.00 40.00 60.00 100.00 14.00 $3,830.63

NOTES

Number of Full-Time Employees (FTEs) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 6.00 6.00 6.00 6.00 1.00 1.00 1.00 1.00 4.00 4.00 4.00 5.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 3.00 3.00 3.00 4.00

NOTES 1.00 1.00 1.00 1.00 6.00 1.00 5.00 1.00 2.00 4.00

Rev: 6/8/2009

Finance director or controller Finance and accounting TBD Total General and Administrative Head Count General and Administrative Labor Expense Breakdown by Role: Annual Cost Chief executive officer $300.00 Chief financial officer 225.00 Chief information officer 200.00 Vice president of human resources 160.00 Administrative staff 50.00 Human resources director 90.00 Human resources staff 60.00 Information technology director 100.00 Information technology manager 90.00 Information technology analyst 70.00 Finance director or controller 120.00 Finance and accounting 70.00 TBD 0.00 Total General and Administrative Labor Expense OTHER DEPRECIABLE ASSETS Buildings Other Other Total Other Depreciable Assets Depreciation Base Beginning Balance $800.00 0.00 0.00 $800.00 $800.00

2.00 3.00 0.00 26.00 Q1 $75.00 56.25 50.00 40.00 75.00 22.50 60.00 25.00 45.00 52.50 60.00 52.50 0.00 $613.75 Q1 $0.00 0.00 0.00 $0.00 $800.00

2.00 3.00 0.00 26.00 Q2 $75.00 56.25 50.00 40.00 75.00 22.50 60.00 25.00 45.00 52.50 60.00 52.50 0.00 $613.75

2.00 3.00 0.00 26.00 Q3 $75.00 56.25 50.00 40.00 75.00 22.50 60.00 25.00 45.00 52.50 60.00 52.50 0.00 $613.75

2.00 3.00 0.00 28.00 Q4 $75.00 56.25 50.00 40.00 75.00 22.50 75.00 25.00 45.00 70.00 60.00 52.50 0.00 $646.25 Q4 $0.00 0.00 0.00 $0.00 $810.00

2.00 3.00 0.00 28.00 Annual Total $300.00 225.00 200.00 160.00 300.00 90.00 255.00 100.00 180.00 227.50 240.00 210.00 0.00 $2,487.50 Annual Total $800.00 5.00 5.00 $810.00 $810.00 NOTES NOTES

Q2 Q3 Purchases (Dispositions) $0.00 $0.00 5.00 0.00 0.00 5.00 $5.00 $5.00 $805.00 $810.00

Rev: 6/8/2009

<Company Name> Annual Operating Budget for Manufacturing Companies
<Year>
Gray cells are calculated for you and generally should not be altered. All currency amounts are in thousands.

Pro Forma Annual Financial Statements Income Statement, Balance Sheet, and Cash Flow Summary
Head Count Summary Operations Sales and marketing General and administrative Total Head Count Pro Forma Annual Income Statement Income Statement Revenues Other income Total revenues Cost of goods sold Gross Margin Margin Contribution % Q1 23.00 27.00 26.00 76.00 Q2 25.00 30.00 26.00 81.00 Q3 26.00 31.00 26.00 83.00 Q4 27.00 33.00 28.00 88.00 Annual Total 27.00 33.00 28.00 88.00 NOTES

Q1 $4,500.00 10.00 $4,510.00 600.00 $3,910.00 86.7%

Q2 $5,000.00 10.00 $5,010.00 750.00 $4,260.00 85.0%

Q3 $5,200.00 10.00 $5,210.00 900.00 $4,310.00 82.7%

Q4 $5,500.00 10.00 $5,510.00 1,100.00 $4,410.00 80.0%

Annual Total NOTES $20,200.00 Taken from financial plan 40.00 Taken from financial plan $20,240.00 3,350.00 Taken from financial plan $16,890.00 83.4% $230.00 Compared to financial plan $225.00

Checkpoint: Budgeted Revenue per Employee Financial Plan Revenue per Employee Expenses Operations Sales and marketing General and administrative Total Expenses Operating Profit Other gains or losses Income Before Taxes Taxes Net Income Pro Forma Annual Balance Sheet Assets Cash Accounts receivable Inventory Other current assets Total Current Assets Operations capital assets Other capital assets Accumulated depreciation Net Property, Plant, and Equipment Other assets Total Assets Liabilities and Equity Accounts payable Accrued liabilities Beginning Balance $50.00 40.00 80.00 20.00 $190.00 $405.00 800.00 0.00 $1,205.00 $100.00 $1,495.00 Beginning Balance $20.00 10.00 Q1 $962.11 30.00 75.00 20.00 $1,087.11 $410.00 800.00 60.50 $1,149.50 $100.00 $2,336.61 Q1 $25.00 10.00 Q2 $1,752.09 40.00 85.00 20.00 $1,897.09 $445.00 805.00 123.00 $1,127.00 $100.00 $3,124.09 Q2 $30.00 10.00 Q3 $2,636.47 50.00 90.00 20.00 $2,796.47 $432.50 810.00 185.13 $1,057.38 $100.00 $3,953.85 Q3 $20.00 10.00 Q4 $3,533.81 40.00 80.00 20.00 $3,673.81 $467.50 810.00 249.00 $1,028.50 $100.00 $4,802.31 Q4 $25.00 10.00 30.0%

$684.56 1,222.81 943.19 $2,850.56 $1,059.44 $0.00 $1,059.44 $317.83 $741.61

$751.94 1,307.19 954.44 $3,013.56 $1,246.44 $21.40 $1,267.84 $380.35 $887.49

$774.75 1,355.63 945.69 $3,076.06 $1,233.94 ($20.00) $1,213.94 $364.18 $849.76

$814.00 1,438.75 987.31 $3,240.06 $1,169.94 $35.00 $1,204.94 $361.48 $843.46

$3,025.25 Taken from Operations section 5,324.38 Taken from Sales and Marketing section 3,830.63 Taken from General and Administrative section $12,180.25 $4,709.75 $36.40 $4,746.15 $1,423.85 $3,322.31

Ending Balance $3,533.81 40.00 80.00 20.00 $3,673.81 $467.50 810.00 249.00 $1,028.50 $100.00 $4,802.31 Ending Balance $25.00 10.00

NOTES

ICT Costs Total Current Liabilities Long-term debt Notes payable Other long-term liabilities Total Long-term Liabilities Total Liabilities Common stock Retained earnings Net income Net Equity Total Liabilities and Equity

10.00 $40.00 $150.00 0.00 5.00 $155.00 $195.00 $1,000.00 300.00 0.00 $1,300.00 $1,495.00

10.00 $45.00 $145.00 0.00 5.00 $150.00 $195.00 $1,100.00 300.00 741.61 $2,141.61 $2,336.61

10.00 $50.00 $140.00 0.00 5.00 $145.00 $195.00 $1,000.00 300.00 1,629.09 $2,929.09 $3,124.09

10.00 $40.00 $135.00 0.00 5.00 $140.00 $180.00 $995.00 300.00 2,478.85 $3,773.85 $3,953.85

10.00 $45.00 $130.00 0.00 5.00 $135.00 $180.00 $1,000.00 300.00 3,322.31 $4,622.31 $4,802.31

10.00 $45.00 $130.00 0.00 5.00 $135.00 $180.00 $1,000.00 300.00 3,322.31 $4,622.31 $4,802.31

Pro Forma Annual Cash Flow Summary Sources of Funds From operations Net income Plus depreciation Changes in balance sheet accounts Accounts receivable Inventory Accounts payable Other liabilities Sale of stock Sale of assets and equipment Sale of other assets Other sources of funds Other Total Sources Uses of Funds Repurchase of stock Debt retirement Purchase of equipment and capital assets Purchase of other assets Other uses Total Uses Net Change in Cash Cumulative Cash Opening Balance Closing Balance Q1 $741.61 60.50 Q2 $887.49 62.50 Q3 $849.76 62.13 Q4 $843.46 63.88 NOTES

10.00 5.00 5.00 0.00 100.00 0.00 0.00

(10.00) (10.00) 5.00 0.00 0.00 0.00 0.00

(10.00) (5.00) (10.00) 0.00 0.00 7.50 0.00

10.00 10.00 5.00 0.00 5.00 0.00 0.00

0.00 $922.11 Q1 0.00 (5.00) (5.00) 0.00 0.00 ($10.00) $912.11 $912.11 $50.00 $962.11

0.00 $934.99 Q2 (100.00) (5.00) (40.00) 0.00 0.00 ($145.00) $789.99 $1,702.09 $962.11 $1,752.09

0.00 $894.38 Q3 (5.00) (5.00) 0.00 0.00 0.00 ($10.00) $884.38 $2,586.47 $1,752.09 $2,636.47

0.00 $937.33 Q4 0.00 (5.00) (35.00) 0.00 0.00 ($40.00) $897.33 $3,483.81 $2,636.47 $3,533.81 NOTES

Summary Trend Data for Chart Quarterly revenue Quarterly margin Quarterly net income (loss) Quarterly cash flow Quarterly total assets

Q1 $4,510.00 3,910.00 741.61 912.11 $2,336.61

Q2 $5,010.00 4,260.00 887.49 789.99 $3,124.09

Q3 $5,210.00 4,310.00 849.76 884.38 $3,953.85

Q4 $5,510.00 4,410.00 843.46 897.33 $4,802.31

Quarterly Trend for Key Financial Metrics
All amounts are in thousands. $6,000.00

$5,000.00

$4,000.00

$3,000.00

$2,000.00

$1,000.00

$0.00 Q1 Q2 Q3 Q4

Quarterly revenue

Quarterly margin

Quarterly net income (loss)

Quarterly cash flow

Quarterly total assets


				
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Description: Sample Budget of a Manufacturing Company