1000 Business Lessons Every Businessman Must Know

Chapter 57 Financial Statements: A Company's Medical Examination Form (1)
[-]. Budget statement - a sharp tool for prior control
465. What can the sales budget report tell the boss?

The sales budget is the starting point for a comprehensive budget, and almost all other budgets use data from the sales budget to some extent.The sales budget includes items such as the name of the product, sales volume, unit price, and sales.In enterprises that produce and operate a variety of products, in order to avoid too complicated sales budgets, the relevant data of all products are generally not reflected in the budget in detail, but the total sales for the whole year and each quarter are listed, and several types are listed. The appendix of the sales budget for the main products is attached to the sales budget, and the products with a small quantity and low sales volume are omitted.

In order to facilitate the preparation of cash budget, the estimated cash income statement is generally attached in the sales budget. The estimated cash income should be the amount that should be received in the current planning period in the sales income of the previous period and the amount that should be received in the current period in the sales income of the current period. sum of payments.

The following table is the sales budget of ABC Company in 2009 (with the expected cash income statement).

Note: 70% of quarterly sales are received in cash in the current quarter, and the remaining 30% are recovered in the next quarter.

The sales volume and sales price in the table come from the forecast of the sales situation in the planning period; the ratio of cash received in each period to the amount of sales revenue is generally determined based on past experience.

466. What can the production budget report tell the boss?

After the sales budget is determined, the production budget can be formulated according to the sales volume in the planning period.Since enterprises generally have a certain amount of inventory to meet temporary needs, the production quantity of each period is not necessarily equal to the sales volume of the current period, but should be calculated using the following formula:

Production quantity in the current period = sales volume in the current period + finished product inventory at the end of the period - finished product inventory at the beginning of the period
The following table shows the production budget of ABC Company in 2009.In the production budget, the inventory of finished products at the end of the period is calculated by multiplying the sales quantity of the next period by a certain ratio, which is 20% in this example; the inventory of finished products at the end of the year is calculated based on the rough estimate of the sales quantity in the first quarter of the next year The quantity of finished goods inventory at the beginning of the period is the quantity of finished goods inventory at the end of the previous period.

The budget for the inventory of finished products at the end of the period is also very important to the enterprise. If there is too much remaining inventory at the end of the period, it will not only occupy a lot of funds, but also increase the cost of warehousing, storage and other aspects, causing unnecessary waste; too little inventory may cause The production of the next period is too tight to even meet the sales needs.Therefore, it is necessary to make reasonable arrangements for the amount of inventory at the end of the period.

467. What can the income and expense budget statement tell the boss

The budget of sales expenses and administrative expenses is the budget of a series of other expenses other than the production costs incurred during the planning period.Among them, the sales expense budget refers to the budget for the expenses that need to be spent to achieve the sales budget. It is based on the sales budget. When formulating, the sales expenses that occurred in the past should be carefully analyzed, and methods such as cost-volume-profit analysis should be used. Analyze the relationship between sales revenue, sales profit and sales expenses to rationally arrange sales expenses and make them most effectively used.The management expense budget is a budget for the management expenses that need to be spent during the operation of the enterprise. It should be prepared with reference to the actual expenditures that occurred in the past, combined with the analysis of the business situation of the enterprise, and strive to make the expenses more reasonable and effective.If the budget of sales expenses and management expenses includes too many items, it is also possible to prepare budgets for each part separately.

When preparing the budget for sales expenses and management expenses, variable expenses and fixed expenses should be distinguished. Variable expenses can be allocated between quarters according to sales volume, and fixed expenses can be evenly distributed over four quarters, or included in the quarter actually paid.Mixed costs should be decomposed into variable costs and fixed costs and included in the variable and fixed parts of the budget respectively. See the table below for the budget of sales expenses and management expenses of ABC Company.

468. What can the cash budget statement tell the boss?

The cash budget integrates the data in the various budgets mentioned above to reflect the planned cash receipts and expenditures, raising and using them.Cash budget includes four parts: cash receipts, cash disbursements, surplus or deficiency of cash, and financing.

Cash income includes the beginning cash balance of the planning period and the expected cash income during the planning period. The beginning cash balance is 31000 yuan, and the expected cash income data during the planning period mainly comes from the sales budget.

Cash expenditure refers to all cash paid during the planning period, including material purchase expenses, direct labor expenses, manufacturing expenses, sales expenses, management expenses, fixed asset purchase expenses, income tax expenses and dividend distribution paid in cash.The data come from the various budgets introduced earlier.

A cash surplus or deficit reflects the difference between cash receipts and disbursements.If the cash income is less than the expenditure, there is a shortage of cash, and the company needs to borrow from banks or other units to meet the needs of cash; if the cash income is greater than the expenditure, there is a surplus of cash, and the company should consider how to arrange excess cash or use it for short-term investment , or to repay the loan.

Financial intermediation refers to the specific financial arrangements made when there is excess or insufficient cash during the planning period, including borrowing from banks, repaying loans and interest, making short-term external investments, and recovering investment and interest.Pre-arrangement of financing within the planning period can avoid troubles due to cash shortage when enterprises need funds, and can also effectively use temporary excess funds for investment to obtain benefits.

Cash budgeting is an important part of a business budget.In order to effectively control cash receipts and payments, enterprises should shorten the period of cash budget preparation as much as possible.Most businesses prepare cash budgets on a monthly or quarterly basis, and some do so on a weekly or even daily basis.

In order to meet temporary cash needs, companies generally need to maintain a certain amount of cash holdings, which we call the minimum cash balance.Therefore, when the cash income is greater than the expenditure but the balance is lower than the minimum cash balance, it should also borrow from banks or other units to make up the balance, and the use of cash for external investment or repayment of loans must also be limited to the minimum cash balance. The cash budget of ABC Company is as follows.

ABC Company Cash Budget
Note:
① The amount of income tax expenditure is estimated based on the analysis and estimation of the sales situation and profit situation during the planning period.

② Assume that the loan should be an integer multiple of 1000 yuan, assuming that all borrowing occurs at the beginning of the period, and repayment occurs at the end of the period.

③ The minimum cash balance of ABC Company is 30000 yuan, so the loan amount in the first quarter should be:
54870+301300＝84870（元），由于借款为1000元的整数倍，故取整为85000元。

④ The annual interest rate of the loan is 10%.The interest paid is calculated on the principal repaid in the current period, so in this example:

The interest paid in the third quarter is:

50000×10%×（3÷4）＝3750（元）

The interest paid in the fourth quarter is:

35000×10%+10000×10%×（3÷4）＝4250（元）。

[-]. Balance sheet - the epitome of a company's financial situation
469. Structure of balance sheet

A balance sheet generally has two parts, the front and the front.Among them, the header of the table briefly describes the report name, compilation unit, date of compilation, report number, currency name, measurement unit, etc.The positive statement is the main body of the balance sheet, which lists the various items used to illustrate the financial status of the enterprise.In the positive form, it is usually reflected item by item according to the classification of assets, liabilities, and owner's equity.In other words, assets are listed in order of liquidity, specifically divided into current assets, long-term investments, fixed assets, intangible assets and other assets; liabilities are also listed in order of liquidity, specifically divided into current liabilities, long-term Liabilities, etc.; owner's equity is listed itemized by paid-in capital (or share capital), capital reserve, surplus reserve, undistributed profit and other items.

The theoretical basis of balance sheet design is "assets = liabilities + owner's equity".According to the balance relationship of this equation, the balance sheet can be divided into left and right sides, the left side lists asset items, and the right side lists liabilities and owner's equity items.This format is the expansion of the accounting equation, so the amounts on the left and right sides of the statement must be equal and balanced.

There are generally two formats of positive balance sheet: account-style balance sheet and report-style balance sheet.

The account-style balance sheet is to list the items of assets on the left side of the table, and the items of equity on the right side of the table, so that the left and right sides of the balance sheet are balanced.

470. Contents of balance sheet

The balance sheet is to properly arrange the assets, liabilities and owner's equity items of the enterprise on a certain date according to the linkage relationship between assets, liabilities, and owner's equity (or shareholder's equity, the same below), and in accordance with certain classification standards and sequences .It reflects the overall size and structure of the enterprise's assets, liabilities, and owner's equity, namely: how many assets are there; among the assets, how many are current assets and fixed assets; How much, how much in stock, etc.How much is the owner's equity? In the owner's equity, how much is the paid-in capital (or share capital, the same below), how much is the capital reserve, how much is the surplus reserve, how much is the undistributed profit and so on.

In the balance sheet, companies usually report items by asset, liability, and owner's equity.That is to say, assets are listed according to the size of liquidity, specifically divided into current assets, long-term investments, fixed assets, intangible assets and other assets; liabilities are also listed according to the size of liquidity, specifically divided into current liabilities, long-term liabilities, etc. ; Owner's equity is presented itemized by items such as paid-in capital, capital reserve, surplus reserve, and undistributed profits.

Banks, insurance companies, and non-bank financial institutions are different from general industrial and commercial enterprises in terms of business content, resulting in their assets, liabilities, and owner's equity components.However, when listed on the balance sheet, assets are usually listed according to their liquidity, specifically divided into current assets, long-term investments, fixed assets, intangible assets and other assets; Listed according to the size of liquidity, specifically divided into current liabilities, long-term liabilities, etc.; for owner's equity, it is also listed by items such as paid-in capital, capital reserve, surplus reserve, and undistributed profits.

471. The role of the balance sheet

A balance sheet is a statement that reflects the financial condition of a business as of a specific date.For example, the financial status on December 12 of each year in the Gregorian calendar is also called a static report because it reflects the situation at a certain point in time.

A balance sheet primarily provides information about the financial condition of a business.Through the balance sheet, the total amount and structure of assets on a certain date can be provided, indicating the resources owned or controlled by the enterprise and their distribution, that is: how many resources are current assets, how many resources are long-term investments, and how many resources are fixed Assets, etc.; can provide the total amount of liabilities and its structure on a certain date, indicating how many assets or labor services the company will need to use in the future to pay off debts and the time of payment, that is: how much current liabilities, how much long-term liabilities, and how much of long-term liabilities need to be used The current working capital is repaid, etc.; it can reflect the equity owned by the owner, and judge the situation of capital preservation and appreciation and the protection degree of liabilities.The balance sheet can also provide basic information for financial analysis, such as comparing current assets with current liabilities to calculate the current ratio; comparing quick assets with current liabilities to calculate the current ratio; calculating the quick ratio, etc. It can indicate the liquidity, solvency and capital turnover ability of the enterprise, thus helping the users of accounting statements to make economic decisions.

472. Format of balance sheet

A balance sheet generally has two parts, the front and the front.Among them, the header of the table briefly describes the report name, compilation unit, date of compilation, report number, currency name, measurement unit, etc.

The positive statement is the main body of the balance sheet, which lists the various items used to illustrate the financial status of the enterprise.There are generally two formats of positive balance sheet: report balance sheet and account balance sheet.The reporting balance sheet has a top-down structure, with assets listed in the upper half and liabilities and owner's equity in the lower half.

There are two specific arrangements: one is to arrange according to the principle of "assets = liabilities + owner's equity"; the other is to arrange according to the principle of "assets - liabilities = owner's equity".The account-style balance sheet has a left-right structure, with assets listed on the left and liabilities and owner's equity listed on the right.Regardless of the format, the equation that the sum of the items of assets equals the sum of the items of liabilities and owner's equity does not change.

In my country, the balance sheet adopts the account type.Each item is further divided into two columns of "beginning of the year" and "end of the period".

473. Preparation method of balance sheet

The preparation of accounting statements is mainly to collect and organize the data recorded in daily accounting to make them useful financial information.The sources of data for each item in the balance sheet of Chinese enterprises are mainly obtained through the following methods:

(1) Fill in directly according to the balance of the general ledger account.For example, "notes receivable" item, fill in directly according to the ending balance of the general ledger account of "notes receivable"; "short-term loan" item, fill in directly according to the ending balance of the general ledger item of "short-term loan".

(2) Calculate and fill in the column based on the balance of the general ledger account.For example, the "monetary funds" item is calculated and filled out based on the total ending balance of the items "cash in hand", "bank deposits" and "other monetary funds".

(3) Fill in the column according to the calculation of the balance of the detailed account.For example, "Accounts Payable", it is calculated and filled out based on the end-of-period credit balance of the relevant sub-accounts to which the "Accounts Payable" and "Accounts Payable" items belong.

(4) According to the analysis and calculation of the balance of the general ledger account and the detailed account, fill in the column.For example, "long-term loan" item, according to the closing balance of the general ledger account of "long-term loan", deduct the part of the long-term loan that will be due within one year reflected in the sub-account of the "long-term loan" item, and fill in the analysis and calculation.

(5) Fill in according to the net amount after deducting the allowance items from the account balance.For example, for the "inventory" item, fill in the net amount after subtracting the balance of the "inventory depreciation reserve" allowance account from the end-of-period balance of the "inventory" item; The balance is filled in with the net amount after subtracting the balance of the provision for "intangible asset impairment" and "accumulated amortization".

The figures in the "beginning balance" column of the balance sheet shall be filled in according to the figures in the "end of period balance" column of the balance sheet at the end of the previous year, and the figures in the "end of period balance" column shall be based on the accounts of the general ledger at the end of the accounting period and their details The balance of the account is filled out.If the titles and contents of each item stipulated in the balance sheet of the current year are inconsistent with those of the previous year, the titles and figures of the items in the balance sheet at the end of the previous year shall be adjusted according to the caliber of the reporting year, and filled in the "beginning of the year" in this form " column.

[-]. Profit statement - the report of the business results of the enterprise
474. What can the income statement reflect?

The income statement is based on the accounting equation "revenue-expenses = profit", and items are listed in a certain accounting period due to the sale of goods, provision of labor services, transfer of asset use rights (such as the lease of intangible assets), etc. Various types of income, as well as the corresponding expenses and losses of various incomes, and compare the income with the expenses and losses to obtain the current net profit.This process of comparing income with related expenses and losses to obtain net profit is called matching in accounting.Its purpose is to measure the results achieved by an enterprise in a specific period or in a specific business, as well as the price paid for these results, and to provide data for assessing operating benefits and effects.

Usually, the income statement mainly reflects the following aspects:
(1) Various elements that constitute the profit of the main business.Starting from the main business income, the main business profit is obtained after deducting the relevant expenses and taxes incurred to obtain the main business income.

(2) Various elements that constitute operating profit.On the basis of the main business profit, the operating profit is obtained after adding other business profits and subtracting operating expenses, management expenses and financial expenses.

(3) Various elements constituting the total profit (loss).On the basis of operating profit, the total profit (loss) is obtained after adding (subtracting) investment income (loss), subsidy income, and non-operating income and expenditure.

(4) Various elements constituting net profit (net loss).Net profit (loss) is obtained after deducting income tax expenses from the total profit (loss).

475. Structural Format of Income Statement
According to the accounting equation "income-expenses = profit" to reflect the operating results, due to the different arrangement of income and expenses, different formats of income statements are formed.There are mainly two formats of the income statement: single-step and multi-step.

1. One-step income statement
It is to add all the income of the current period together, and then add all the expenses together, and calculate the profit and loss of the current period through one calculation.Under this structure, all income and expenses are treated equally, regardless of priority or priority, and the information it reflects is unprocessed raw data.

2. Multi-step income statement
According to the impact of income and expenses on profits, the profit and loss of the current period is obtained through multiple calculations.The general steps are as follows: the first step is to start from the sales revenue and subtract the cost of sales to calculate the sales gross profit; the second step is to subtract the period expenses from the sales gross profit to calculate the operating profit; the third step is to calculate the operating profit Calculate the total profit (loss) realized in the current period by adding and subtracting non-operating income and expenses, plus investment income and subsidy income; the fourth step is to subtract income tax from the pre-tax accounting profit to obtain the current net profit (net loss).The characteristic of the multi-step income statement is to reflect the composition of profits according to the situation of production and operation, so it is convenient to analyze the profitability of the enterprise, and it is also helpful for the comparative analysis of different enterprises or corresponding items of the same enterprise in different periods.my country's enterprise accounting system stipulates that the format of the income statement should adopt a multi-step format.

(End of this chapter)