The Budgeted Income Statement

The Budgeted Income Statement

With interest expenses gotten from the cash budget, Royal can prepare the budgeted income statement.

The Budgeted Balance Sheet

Royal reported the following account balances prior to preparing its budgeted financial statements:

• Land – $50,000
• Ordinary shares – $200,000
• Retained earnings – $146,150 (April 1)
• Equipment – $175,000

Budgeting in an International Environment

Considerations:

• Translating foreign currency
• Predicting inflation rates and prices in unstable economies
• Predicting sales in countries with different consumer preferences
• Dealing with different labour laws, social customs, and norms affecting wage rates and worker productivity