Budgeted Revenue Income Statement

A budget income statement also known as the pro forma income statement is a financial report that analyzes the estimated revenue and expense numbers with the real numbers.

Budgeted revenue income statement. The budgeted income statement can be prepared quarterly or yearly. If you re doing a budgeted income statement for your business you ll have far more expenses taxes and budgets to consider. In other words it s a report that lists the predicted numbers side by side with the actual numbers to show the company performance compared with the expected performance. In simple words it predicts income statements for future periods of time.

The company s income tax rate is 28 percent. However it is advisable to prepare the current year financial projections at quarterly intervals to monitor the actual performance as compared to budgeted numbers at the end of every quarter. A budgeted income statement is a financial report that compares the budgeted revenue and expense figures with the actual performance numbers achieved during the period. The budgeted income statement contains all of the line items found in a normal income statement except that it is a projection of what the income statement will look like during future budget periods.

It is compiled from a number of other budgets the accuracy of which may vary based on the realism of the inputs to the budget model. It is a report that puts the estimated numbers alongside the real numbers to evaluate the company s performance. Meaning the budgeted income statement is useful to report all the earnings and expenses for a particular period of time for a given period of time say a month quarter and year. This statement forms the focal part of every enterprise s financial planning.

Budgeted income statement definition. Following the multi step format it starts with sales revenue and then subtracts cost of goods sold to arrive at gross profit. Now you have an idea of how to do your budgeted income statement for the coming months. It is merely the combination of sales revenue budget cost of goods sold budget operating expense budget and cash budget.

Also called a pro forma income statement it is a financial report that compares the estimated revenue and expense numbers with the real numbers. The budgeted accounts receivable balance contributes to the total assets appearing on a budgeted balance sheet.