MAA103 Lecture Notes - Lecture 3: Net Profit, Bank Statement, Income Statement
Document Summary
The projected statement of financial position (balance sheet: summarises a business" expected financial position at the end of a budget period, projected, assets, liabilities; and, owners" equity. Current assets: benefits realised within 12 months, e. g. cash, inventory, accounts receivable. Non-current assets: benefits last more than 12 months, e. g. property, plant and equipment, the same is true for. Current liabilities: obligations settled within 12 months, e. g. accounts payable, salaries payable. Non-current liabilities: obligations settled beyond 12 months, e. g. bank loans. Start with a list of assets you think you"ll need. this should have been done in the. Production assets required (capex) section. for each asset, research its estimated value: once you have compiled your list of assets, calculate the value of total. Assets; and think about where the money" will come from in order to get these assets. With top-down budgeting there is not much low level participation (i. e. by junior managers). targets are set by top management.
