 Hello in this lecture we're going to look at the master budget part six budgeted balance sheet if you haven't taken a look at the other five you might want to take a look at those first because we will be using components of those in order to compile the balance sheet at the end of this we will be able to list components of the master budget and compile the budgeted balance sheet this is going to be the components here we started with this sales budget we need to do it in this order sales budget then we had the production budget and then the production budget will be used to make the direct materials budget the direct labor budget the overhead budget as well as the capital expenditures budget the selling and administrative budget then we're going to have the cash budget then we can put together the statements the balance sheet budget and the budgeted income statement as well as the cash flow we also had some other worksheets in order to calculate the income statement we wanted to calculate the cost of goods sold in order to do that we needed to have the cost of goods manufactured so that's going to be the process that we're going through in this case and this one we're going to focus in on the balance sheet putting a lot of the stuff together in terms of the balance sheet remember when we think about the budget we often think about the income statement how we're going to perform over time the balance sheet is going to be where we are at as of the end of that point in time where we're going to be standing once the budget time period is over in terms of a balance sheet perspective all right so we have done this so far we've already done the sales budget that's number one step one we did step two we used that to do the production budget then we have the raw materials budget the direct materials budget and then the factory overhead budget the selling expense budget the general and administrative expense budget we used that to create the cash budget here and then the budgeted cost of goods manufactured so that we can get the cost of goods manufactured number that we would then use to calculate the cost of goods sold number we use that to then calculate the income statement so we've done all that so far we're going to bounce back and forth to some of these items in order to use them to create the balance sheet the point we are at at the end of the time period of course so balance sheet at the end of our budgeted time period where do we stand after this time period that we are budgeting for this quarter is ended that's what we're looking at we're not the assets will be the current assets going to start off with cash cash will be coming from the cash budget so cash budget we have the 40 000 that's where this 40 000 is here don't confuse that with the 40 000 at the beginning of last time's balance sheet so this is the balance sheet last at the end of last period which is of course the beginning numbers for this period the reason it's the same is because remember that's our minimum balance so it happens to be that we needed to take out a loan to get to 40 000 and because that's our minimum balance so don't get confused that that's the same 40 it's not the same 40 uh this is the beginning 40 this is the ending 40 the reason they're the same is because we made it the same in order to keep our minimum balance at 40 by taking out a loan in this case the loan at the end for that 8 160 all right then we got the accounts receivable we're going to have to do a bit of a calculation to figure out what the ending balance in the accounts receivable is so what we're going to do is we're going to take the beginning receivable which is going to come from last times accounts receivable so we had the balance sheet as of the end of last period which is of course the beginning of this period at 342 248 that's where we start and then we're going to add to that the credit sales so we're going to have to figure out what the credit sales are a problem's going to have to give you that in real life we're going to have to of course estimate that in this case the problem said that we have 1,447,200 in sales given by the sales budget here so here's the sales budget giving us this number here and we said that 70 percent of that the problem said was going to be on account therefore those are sales that are going to increase accounts receivable so here's where accounts receivable started then we had the sales on account increase in the receivable and then we have the cash collections from credit sales so we had to figure that out and we've done that in the past we did that on the total cash receipts from customers calculation here and so if we add these up that's what we received in terms of cash so of course that's going to be what's reducing the accounts receivable so if we take this and make it a bit larger like this we're going to say that the 342248 plus 346080 plus 329280 is going to give us this 1,017608 and then if we do the calculation we started off with 342248 people on us money plus 1013040 that's what increased accounts receivable those are the sales on account minus what people paid us which was 10170608 and that should give us the ending balance of 337680 337680 that's our ending receivable so we got to go through a bit of a calculation to get that that's what we're going to be out here on our balance sheet there's the ending receivable next item raw materials we're going to take that from step three in our budgets which is raw materials budget and we're going to take the ending balance in terms of units here and multiply it times the 21 per unit price and that will give us our ending balance of the 84,000 in this case so remember what we're looking at is where we stand as of the end of the time period that's what the balance sheet is in terms of the budget of balance sheet so we're going to take our ending amount here that's what we're going to have on the balance sheet at the end of the time period then we've got the finished goods inventory finished goods inventory we could take from the cost of goods sold calculation where we have here and this is going to be have to be something that's given in the problem it's going to have to be something that we will estimate in real life what's going to be in the ending finished goods inventory and then if we add up the total current assets then we can take out the calculator here and that would be the 40,000 plus the 337,680 plus the 8400 plus the 321360 gives us the 783040 that's our total current assets then we're going to have the equipment so we're going to look in there's a property plant and equipment we can get that