MGMT 30B Lecture Notes - Lecture 12: Income Statement, Earnings Before Interest And Taxes

• School: UC-Irvine
• Department: Management
• Course: MGMT 30B
• Professor: Machiavelli Chao

Document Summary

Sg & a expenses budget how much cash do we have to pay these sg & Budgeted unit sales x variable sg&a cost per unit = total variable sg&a expenses + fixed sg&a expenses = total sg&a expenses. Non cash (depreciation, amortization) sg&a expenses = cash disbursements for sg&a expenses. A. 7) cash budget how much cash do we have? (a. 7. a) Beginning cash balance + collections from customers = total cash available. Cash disbursements for direct materials total direct labor cost cash disbursements for manufacturing overhead cash disbursements for sg&a expenses cash used for equipment purchases . Cash used to pay dividends = excess/deficiency of cash. + loans and borrowings loans and borrowings repayments interest expense = Sales cost of goods sold = gross margin sg&a expenses = Net operating income interest expense = net income/loss. Ii) developing a flexible budget: variance analysis cycle. Start cycle over again: flexible budget variances. Start with planning budget and actual results from operations.