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Here is a budget income statement explanation.
00:14
The budget income statement provided by the previous course account and there is a financial document that projects the expected financial performance of cct corporation for a specific period, in this case an annual budget.
00:31
It consists of several key components such as revenue, the budget estimates revenue based on the number of customers served queue and unit price per customer, in this case revenue budget is $172 ,800 with a favourable variance of $14 ,400 due to increased customer demand.
01:11
Second expenses, the budgeted expense include wages and salaries, supplies, insurance and mays, shillers, expenses.
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Each expense item is calculated based on a formula involving the activity level queue and the other cost drivers.
01:30
The total expenses are budgeted as $160 ,900 and third net operating income.
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The net operating income is calculated as a difference between revenue and the total expenses.
01:49
In this budgeted it is projected as $11 ,900 with a favourable variance of $5 ,700 indicating the company is performing better than expected.
02:08
Next annual budgeted financial statements and first gather data, collect historical financial data, market trends and any relevant information to provide a basis for budget assumptions...