 we're going to be the current assets and the property plant equipment or just equipment in this case. So it equals the current assets here plus the net equipment, the equipment less the accumulated depreciation. Okay so now we're going to go to the liabilities and equity liabilities and equity. So that's going to be our next kind of section here of course and then we're going to have our current assets or current liabilities I should say. Current liabilities and those will include starting off with accounts payable this time and we're going to have to do another calculation over here. Now this will be somewhat similar to the accounts receivable calculation where we will start off with the payable on the book so we're going to have to go to the balance sheet where did we start off with the accounts payable 200,500, 200,500 and then we only have purchases that's the only thing we use our payables for to purchase inventory so we can we can then go up to our purchases of inventory we have the standardized purchase we always buy all the inventory for the month and then we pay for it by following month. So we're going to go ahead and say this equals and scroll up to our purchases area up top where we purchase the materials so we're going to scroll up to the purchases we have the 611 474 of purchases of materials that's the only thing we use the payable accounts for in this company so then we have the payments for raw materials then so we have to sum up the actual payments that we made for the raw materials which is going to reduce the payable so we're going to go up we could find that on our cash disbursements so we have the cash disbursements here and we're looking for the payments for material so again we could have just taken up the total the 623 49 or we could sum up the column again it's going to add up to the 623 49 for July August and September these are what we paid off so the payable at the end is going to equal the payable at the beginning plus what we purchased on account meaning accounts payable goes up because we got stuff and we didn't pay for it we put it on credit minus the part that we paid off like the part of the kind of the credit card that we paid off that gives us our ending payable of the 191 625 so we're just going to say this equals and i'm going to scroll back over here that number right there okay so next time we're going to have the short term loan payable so remember we had the small loan to get us up to that minimum balance of 40 000 we can pick that up we can pick that up and the cash flow we needed this 8001 60 to bring us up to that 40 000 there so we have the loan and then we have the income taxes payable income taxes payable so we calculated the income tax and of course we haven't paid it yet at this point so whatever's on the income statement in terms of income tax is what we owe or what we will owe in the budgeted so we have the income tax here we owe that we we're going to incur it and then owe it of course at that point so we have the total current liabilities is then going to be the sum of our current liabilities so we're going to equal the sum of this 191 625 down to the 23263 we could underline this as well we can go to the home tab we can go to the font group we can underline this as well then we have our long term we have one long term liability which is a long term note payable and note that hasn't changed we've been we're still at the same start part where we started from we're paying interest on it but the principal has not going down we've just been paying off the interest paying like the rent on the money still at 500 000 we're just paying off the interest so we're going to go down here and we still got that big 500 000 loan that we owe back so we're going to have the common stock now the common stock hasn't changed so we're going to scroll back up here and say the common stock we haven't issued any more common stock so we're still at the 335 335 000 and so we haven't we haven't issued any more and remember if we issue common stock that's kind of like an investment if we were sole proprietor the more investors putting money in we do however have a change in retained earnings so we are going to have a change in the retained earnings i'm going to indent this here we're going to have our last little worksheet over here to calculate that difference in retained earnings and this will be kind of like our many statement of equity here that will show us this change retained earnings so i'm going to scroll back over here i'm going to say our beginning retained earnings the beginning retained earnings we had was 208 788 so this is 208 788 that's where we started with and of course retained earnings goes up by net income and we calculated that on the budgeted income statement to be the 43204 and we also have dividends so remember that's the like draws that's the amount that's that's being taken out or given to shareholders and we we see that that happened on the cash flows one place where we can't see it so there was this 10 000 of dividends that were paid out so therefore the ending retained earnings is going to be what we started with plus the income that was earned minus the dividends that were paid out therefore kind of the amount the earnings that are that still retained at this point are the 241 992 so that'll give us our total stockholders equity and we'll calculate that over here i don't know why i made this negative i'm going to make that positive i'm going to i put a negative sign in front of that i'm going to take that away so we're going to add those two up we're going to say this equals the sum of the common stock and the retained earnings so we have that and now we have our last number which will of course be the total stockholders equity and liabilities liabilities and liabilities and equity and of course we're hoping that after we add these up it'll add up to the total assets and meaning that we will be in balance and this will this kind of my check number here that'll go to zero if that's the case so i'm going to say this equals the sum of the current liabilities the long-term liabilities and the stockholders equity and hopefully when we hit enter this number will go to zero if we hit enter that's going to go and it all right so this number then equals this number we are in balance so we feel good and that is the master budget