Page 166 - Budgeting for Managers

Balance Sheet as of December 31, 200x
Assets
Cash
$100,000
Accounts Receivable Tracking Your Budget 149
25,000
Inventory 20,000
Total Current Assets $145,000
Equipment $250,000
Less Accumulated Depreciation $150,000
Net Fixed Assets $100,000
Total Assets $245,000
Liabilities
Accounts Payable $50,000
Notes Payable $50,000
Accruals $25,000
Total Current Liabilities $125,000
Long-Term Debt $50,000
Total Long-Term Liabilities $50,000
Total Liabilities $175,000
Equity
Common Stock $50,000
Retained Earnings $20,000
Total Equity $70,000
Total Liabilities and Equity $245,000
Table 9-6. A balance sheet
problems in the company. Here are some examples of condi-
tions we might discover and actions we might take.
• Getting new work. If accounts receivable are low, we
might want to focus on sales and marketing to increase
work and accounts receivable.
• Finishing work. If we have contracts in place, but work is
not yet done, then we can finish the work and bill it, so
that we can move money from accounts receivable into
our checking account.
• Ordering materials. If we have money available, but
inventory is low, we can stock up on inventory or sup-