From the course: Accounting Foundations: Budgeting

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Closer look at our sample sales budget

Closer look at our sample sales budget

From the course: Accounting Foundations: Budgeting

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Closer look at our sample sales budget

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- Now, in our example, Brigham Boat Company has projected sales for the first two quarters of 2019 to be a total of 60 boats and the anticipated sales price for each boat is $10,000. Now, for most organizations, they divide their yearly sales budget into monthly, weekly, or even daily budgets in order to plan production schedules and cash flows more precisely. For Brigham Boat Company, they project their boat sales on a quarterly basis and we're going to look at just the first two quarters of 2019 as well as the last quarter of 2018. Now, keep in mind that given where we are standing, the beginning of 2019 in this example, the last quarter of 2018 has already happened. These are actual data. Now, regardless of whether the budget is on a quarterly or a yearly basis, the concepts are the same. For this example, we have narrowed our focus down to one actual quarter, the last quarter of 2018, and two forecasted quarters, just to keep things simple. Now, as you can see, the sales budget…

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