Budgeted Balance Sheet Examples for Businesses

Explore diverse examples of developing a budgeted balance sheet to enhance financial planning.
By Jamie

Understanding Budgeted Balance Sheets

A budgeted balance sheet is an essential financial tool that helps businesses forecast their expected financial position at a future date. It outlines projected assets, liabilities, and equity, enabling organizations to plan for resource allocation and assess financial health. Below are three diverse, practical examples of developing a budgeted balance sheet that illustrate how different businesses can approach this important task.

Example 1: Start-Up Technology Company

Context

A start-up technology company is preparing for its first year of operations. They need to create a budgeted balance sheet to secure funding from investors.

To develop their budgeted balance sheet, the company estimates the following:

  • Current assets: Cash, Accounts Receivable, and Inventory
  • Non-current assets: Equipment and Software Development Costs
  • Current liabilities: Accounts Payable and Short-term Loans
  • Long-term liabilities: Bank Loans
  • Equity: Owner’s Capital

Budgeted Balance Sheet

Assets Amount Liabilities & Equity Amount
Current Assets Current Liabilities
Cash \(50,000 Accounts Payable \)15,000
Accounts Receivable \(20,000 Short-term Loans \)10,000
Inventory $30,000 Long-term Liabilities
Total Current Assets \(100,000 Bank Loans \)25,000
Non-current Assets Equity
Equipment \(40,000 Owner’s Capital \)60,000
Software Development Costs $25,000
Total Non-current Assets \(65,000 Total Liabilities & Equity \)100,000
Total Assets $165,000

Notes

  • The start-up anticipates spending significantly on equipment and software development, crucial for their operations.
  • They will need to manage cash flow carefully to cover liabilities.

Example 2: Established Retail Business

Context

An established retail company aims to create a budgeted balance sheet for the upcoming fiscal year to evaluate expansion opportunities.

The company assesses its existing assets and liabilities, projecting changes based on expected sales growth and inventory turnover.

Budgeted Balance Sheet

Assets Amount Liabilities & Equity Amount
Current Assets Current Liabilities
Cash \(60,000 Accounts Payable \)25,000
Accounts Receivable \(35,000 Short-term Loans \)15,000
Inventory $80,000 Long-term Liabilities
Total Current Assets \(175,000 Long-term Debt \)50,000
Non-current Assets Equity
Property & Equipment \(200,000 Retained Earnings \)150,000
Total Non-current Assets \(200,000 Total Liabilities & Equity \)175,000
Total Assets $375,000

Notes

  • This retail business anticipates a 10% increase in sales, allowing for a higher inventory level.
  • The budget will assist in determining how much capital is required for the expansion.

Example 3: Non-Profit Organization

Context

A non-profit organization is developing a budgeted balance sheet to assess its financial position before launching a new community program.

The organization expects donations and grants to increase and needs to plan for potential expenses.

Budgeted Balance Sheet

Assets Amount Liabilities & Equity Amount
Current Assets Current Liabilities
Cash \(30,000 Accounts Payable \)5,000
Accounts Receivable \(15,000 Short-term Grants Payable \)10,000
Total Current Assets $45,000 Long-term Liabilities
Non-current Assets Equity
Equipment \(10,000 Unrestricted Funds \)20,000
Total Non-current Assets \(10,000 Total Liabilities & Equity \)45,000
Total Assets $55,000

Notes

  • The non-profit expects an increase in donations by 20%, which will influence both assets and equity.
  • This budgeted balance sheet will help in strategic decision-making for resource allocation for the community program.