 Hello, in this lecture, we're going to talk about the master budget. We're going to go through the sales budget, the production budget and the materials budget. At the end of this, we will be able to list the components of the master budget, create the sales budget, create the production budget and create the materials budget. So we're going to start off, we just want to look at the list and the activities that go through the master budget for a production company, and this is similar to many types of budgets when we think about the most basic type of budget many people think of. Well, let's take a look at the income statement, how we did last year, basically divided by 12, make some adjustments and that will be our budget for the months going forward to the next year. That's the most basic kind of components of the budget and that's how any budget kind of starts off. We're going to look at last time's material, what happened, how did we perform and then make some adjustments into the future. As we get more sophisticated, of course, we want to think about other things into the future other than just past performance, like what's the economy going to be like.