Planning for Profit and Cost Control

1. Describe the budgeting process and the benefits it provides.

2. Explain the relationship between budgeting and human behavior.

3. Prepare a sales budget and related schedule of cash receipts.

4. Prepare an inventory purchases budget and related schedule of cash payments.

5. Prepare a selling and administrative expense budget and related schedule of cash payments.

6. Prepare a cash budget.

7. Prepare a pro forma income statement, balance sheet, and statement of cash flows.

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