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Essay / Research Paper Abstract
This 8 page paper presents a sales budget, production budget, cash budget, profit and loss account, draft balance sheet and break even analysis for a projected new business. All calculations are shown. The bibliography cites 1 source.
Page Count:
8 pages (~225 words per page)
File: TS14_TEsalbud.rtf
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Unformatted sample text from the term paper:
the number of sales that are expected and the level of revenue received for the sales. Usually sales are accounted for in this type of budget when they are made
and the payment is received. IN this case we will make the assumption that the goods are paid for in the same moth the sale is made. To demonstrate
the use of a sales budget we will assume that a new firm is starting up; Widgets R Us has a new way of making widgets that it believes will
allow it to gain a good market share. They will have a single product; a new style of widget that they will sell to other businesses. The first part of
the planning will be the sales budget that will estimate the level of sales. We may assume that these are based on accurate sales production based on the input of
the buyers who are prepared to sign contracts for the following year. We will also assume that there is some seasonal demand and that as winter nears there is a
drop in the demand. Table 1 Sales Budget for 12 months Jan Feb Mar Apr May Jun Units sold 500 1,000 1,000 2,000 2,000 2,500 Revenue per
unit 10.00 10.00 10.00 10.00 10.00 10.00 Total revenue 5,000 10,000 10,000 20,000 20,000 25,000 Accumulative total 5,000 15,000 25,000 45,000 65,000 90,000 Jul Aug Sept Oct
Nov Dec Units sold 2,500 2,700 2,500 2,000 1,500 1,500 Revenue per unit 10.00 10.00 10.00 10.00 10.00 10.00 Total revenue 25,000 27,000 25,000 20,000 15,000 15,000 Accumulative total
115,000 142,000 167,000 187,000 202,000 217,000 With the knowledge of what will be sold, the next consideration is the level of production that will be needed to meet that demand.
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