This work aims to highlight the importance of the budget as an element of planning and control expressed in economic and financial terms within the framework of a strategic plan, capable of being an instrument or tool that promotes integration in the different areas that the company has.
Participation as a contribution to the set of initiatives within each responsibility center and the responsibility expressed in terms of programs established for compliance in terms of a clearly defined structure for this process.
However, the budget horizon is short-term (1 year) and the projection of the provisional financial statements such as the balance sheet, the statement of resolution and the cash flow statement is consolidated or is intended.
budget-system-design-for-a-shoe-factory2. GENERAL
2.1 IDENTIFICATION OF THE COMPANY
OWNERS NAME: Emilse Hurtado, Alex Castellanos
BUSINESS NAME: Eclipse footwear
NIT: 37,722,157 - 0
ECONOMIC ACTIVITY: Manufacture of children's footwear for men and women, sale of footwear for women and men, manufacture and sale of sports shoes, formal and informal, for children, women and men.
LOCATION: Cra 18 No. 6-49 comuneros neighborhood, Bucaramanga
LEGAL ASPECTS: Simplified regime. Non-declarant. Non-retainer. It is registered in the chamber of commerce. It has all the operating documentation up to date. Commercial registration: 05-115700-01-2004-08-2
PHONE: 6717118
2.2 MISSION
Eclipse footwear is a company dedicated to the manufacture and sale of footwear for men, women and children. Our commitment is to satisfy the needs of our clients, working under the principles of quality, experience, service, compliance and respect for our people within the philosophy of continuous improvement.
As a human team we have the opportunity to work daily with honest people with a high sense of belonging and professionalism.
2.3 VISION
Calzado eclipse will be a solid, profitable and nationally and internationally recognized company, with an excellent image for having a human team of great performance and productivity, willing to provide quality processes and products to satisfy our customers, thus contributing to social development.
2.4 HISTORICAL OVERVIEW
Eclipse arises in 2004, a time when the production and marketing of footwear is booming in Bucaramanga; in which only small artisanal factories producing footwear existed on the market and timidly began to produce it.
Alex Hurtado, under the encouragement of his father, designed a small and medium-sized company to manufacture footwear; This with the help of his right hand, his wife Emilse Hurtado, who has been the person who has supported him in all the decisions that are made in favor of the development of the company.
Eclipse began its productive activity on September 21, 2004 and is part of the best companies in Bucaramanga for the production and sale of footwear; positioning itself in the sector as a competitive company with quality and price to offer a good product to society.
This leadership in the industry was achieved in the first year of activities and since then he has worked to maintain productivity levels and permanent technological development that allow him to continue at the forefront of the national footwear sector.
2.5 ORGANIZATIONAL STRUCTURE
Currently the company does not have an organizational structure , the positions that exist in it are explained below.
- MANAGER: Owner, in charge of the general management of the company, establishes the administrative and financial part, is the head of part of the production. DEPUTY MANAGER: Owner, is in charge of buying the raw material, looks for new businesses, is the head of part of the production. CUTTER: It is in charge of cutting the raw material into pieces according to molds and according to the quantity established in the work orders, then tap and list. ASSEMBLER: He is in charge of assembling or shaping the cut. TRIM: It is in charge of sewing the shoe. ASSEMBLER: It is responsible for taking the formed cut, and giving it the shape of the foot. FLOORING:It is in charge of assembling the cut with the sole, and cleaning it. EMPLANTILLADOR: He is in charge of shoe makeup, insoles, cleaning, packing, and quality control.
2.6 GENERAL DESCRIPTION OF THE COMPANY
2.6.1 ACTIVITY
Manufacture of children's footwear for women and men, sale of footwear for women and men, manufacture and sale of sports shoes, formal and informal, for children, women and men.
2.6.2 POSITIONING IN THE MARKET
CALZADO ECLIPSE begins its work focusing on a production line: that of a lady. Currently, it manages the three lines for women, men and children, which have been liked nationally, opening its market in Bogotá, Cali, Valledupar, among other cities in the country, for their designs and quality, especially on the Colombian coast.
In the objectives demarcated since their beginning of work are those of quality, and they understand that a product of optimal conditions remains on the market and supports a good name and recognition in the environment.
In the production they are working with, mainly synthetic leather materials have been used; In addition, its short-term goals include the possibility of starting commercialization in Venezuela and other countries.
In the production they use synthetic material brought from China, guaranteeing an original product desired by its clients.
The prices are stipulated according to the place of delivery, the shoes are cheaper if they are distributed in the city; Its clients make their orders according to the favorable seasons, considering the high season the months of September, October, November and December, the others are low season where the orders are in less quantity.
Below is a chart summarizing leads and orders placed in high and low seasons.
Table N. 1 Amounts sold on average by city
| CLIENT | PED. TEM. HIGH | PED. TEM. LOW | UNIT PRICE |
| Valledupar | 32% | 22% | 18,000 |
| Bogota | 37% | 39% | 19,000 |
| Barranquilla | twenty-one% | 30% | 20,000 |
| Bucaramanga | 10% | 9% | 19,000 |
It is found that the footwear company eclipses in the high season, has as potential clients in the city of Bogota Mrs. Maria Luz Sandoval; which covers 37% of its production, followed by Valledupar with 32%; and as retail clients in the city of Barranquilla with 21% and Bucaramanga with 10% of their sales.
In this way, it is analyzed that footwear eclipse in the low season, has as potential clients in the city of Bogota the lady Maria Luz Sandoval; which covers 39% of its production, followed by Barranquilla with 30%; Valledupar with 22% and Bucaramanga with 9% of its sales.
Graph N. 1 Amounts sold on average by city
2.6.3 ECONOMIC CONDITION
The company begins its fourth year of existence, has shown a downward trend in its income, due to some unforeseen events in the last two years, since the latest machinery has been implemented, and the highest quality MPs are purchased To be competitive in the market, they have also had to hire more staff; because their sales have increased.
Table N. 2 Income per year
| YEAR | INCOME |
| 2004 | 26,000,000 |
| 2,005 | 19,000,000 |
| 2006 | 9,000,000 |
Graph N. 2 Income per year
2.6.4. TECHNOLOGICAL CONDITION
The technological part of eclipse footwear has:
2.7 CONSULTING AND / OR ADVISORY AREA
2.7.1 GENERAL PROBLEM OF THE COMPANY
Currently Calzado ECLIPSE does not have a structured or designed accounting, cost or budget information system, becoming a necessity due to the volume of operations, which will bring about a regime change, which will require an investment to implement these systems., which allows you to record your transactions, process information, issue financial reports and calculate exactly the real cost of your product, this in turn generates deficiencies in the calculation that they currently make to the shoe process.
They live day by day, since they do not have a budget system implemented to know the inconveniences that could arise in the future.
Another problem is found in hiring, for which there is no regulation, and most staff are not legally linked to social security affiliations.
At this time, Footwear ECLIPSE does not have adequate facilities for the proper performance of employee functions and this makes the development of processes somewhat uncomfortable since operators find it difficult to carry out their functions with complete satisfaction. due to the little space that exists in the production part.
This company does not have a warehouse that allows it to have sufficient space to locate the raw material and the finished product in an orderly manner, there is no corresponding order for the location of the materials and this means that there is no adequate control in inventories.
2.7.2 OBJECTIVES
OVERALL OBJECTIVE
Design a budget system that allows the entrepreneur to analyze, plan, and control the financial development of the company.
SPECIFIC OBJECTIVES
- Identify areas of the company Identify procedures to carry out the activities Classify the elements to budget Define the budget to apply Design production format Establish controls Establish accounting entries Assign accountants Analyze variations Establish cash flow, budgeted balance sheet and Budgeted income statements Prepare initial balance sheets, accounting documents, accounting procedures and financial statements.
3. CURRENT CONDITION OF THE WORK AREA
3.1 METHODOLOGICAL DESIGN
3.1.1 INSTRUMENTS
The methods used to collect the information were: observation of the production process, dialogue with the owners and operators, which allowed obtaining the following data:
- Interview conducted with company managers, on the general knowledge of the company.Dialogue with the production staff of the different processes, inquiring about the functions performed, working hours, explanation of the process, materials, supplies and machinery used.: By means of a business visit to the factory, data was taken according to what was seen in the process of making footwear. Consultation: We had access to the accounting and cost books.
3.2 DESCRIPTION OF THE CURRENT CONDITION
Information recording form
- Preparation of invoices: By means of a pre-printed stub with the logo of the shoe factory, they record the sales made to the different clients. The daily sales records are made in a designed Excel format. Cash movements, suppliers and clients are kept there. Cash movements of cash inflows and outflows, such as cash sales, payment to suppliers, payroll, additional expenses, are recorded, resulting in a final balance. cash, for the available box. For suppliers, the purchase date, concept, invoice number, value and amortizations made to these accounts payable are recorded. For customers, sales made on credit are recorded. Depending on the term for each payment, the budget is calculated according to the units you want to produce,they do this hypothetically; since they do not have a budget system implemented in the company.
Report generation within the company
- Weekly “Mini Balance”, which allows obtaining the profit or loss generated, after reducing the payments to the providers of the total accounts receivable plus the cash balance. Nomination: it is settled weekly according to the tasks carried out by each operator For this, each time a task is assigned, a production order tear-off is given indicating the reference, number of pairs to be made, numbering and type of material to be used.These tear-outs are delivered by the operators at the end of the week, for the administrator to perform the calculations, according to a default value of pay per task.
3.3 EVALUATION OF THE CURRENT CONDITION
3.3.1 IDENTIFICATION OF THE PROBLEM
- Suppliers: there are no records as such, due to the short time in the ECLIPSE footwear market; therefore, it is carried out by means of quotes. Creditors: like the providers, they are not defined. Regarding the payment of payroll, it is observed that no social security discounts are made, and no provision is made. Clients: We currently have four potential customers in different cities, and some retailers in Bucaramanga. There are no established credit policies. The costs are not assigned by an established system, they do not handle the formats indicated for the calculation of the three elements of the cost, it is only done in a general way. Based on previous experiences, the sale price of footwear is calculated according to the policies established in the footwear sector.They do not manage a budget that allows them to clearly determine the objective that the company wants to achieve with respect to the level of sales in a given period, as well as the strategies that will be developed to achieve it. By not managing budgets they cannot Control or measure the quantitative results, qualitative; Furthermore, they cannot set responsibilities in the different dependencies of the company to achieve the goals set.Furthermore, they cannot set responsibilities in the different dependencies of the company to achieve the goals set.Furthermore, they cannot set responsibilities in the different dependencies of the company to achieve the goals set.
CAUSES
- The lack of an organized accounting system prevents having a control and record of suppliers, customers, expenses, costs and inventories that allows management to make decisions, although control of the three elements of cost is carried out when determining the cost of sale, the product must be submitted to the market price, due to the competition in the sector. Recruitment of employees is carried out without taking into account the requirements of the law. By not managing a budget, you cannot foresee the eventualities that will occur in the future.
CONSEQUENCES
- Not having the accounting system generates decision making with a significant margin of error. They can lose money selling below cost, since the pressure of competitive prices cause their products to increase or decrease their selling value. In the event of an accident at work, the company would incur compensation and leave for not affiliating employees to comprehensive security, which would entail an additional unforeseen cost that may negatively influence the organizational economy, since they do not have a budget, in case of situations outside of normal working capital could be lost.
STRENGTHS
- The company is positioned in the national market. The brand is recognized. The products are presented at different events and fairs in the footwear sector. The products are original. Internal customers are committed to the company. It seeks to position the brand in neighboring countries. to diversify the market. There are a variety of suppliers, so the products are easily available in the market. The company has bank support if capital is required.
WEAKNESSES
- Supplies are insufficient to meet current demand, as well as the necessary machinery. The sector is highly competitive.
3.3.2 CONCLUSION OF THE CURRENT CONDITION
Studying the current behavior of the company, it has been noted that costs are not appropriately assigned and historical records that help their owners in decision-making are not kept.
They do not have a financial budget that allows them to estimate in advance the destination of the items that flow through the economic activity of the company.
As for the accounting part, as it is a simplified regime company, not obliged to keep accounting, it cannot make decisions based on historical records, so the implementation of this system is essential.
4. DESIGN OF THE ACCOUNTING AND BUDGETING SYSTEM
4.1 PROPOSAL
After analyzing the facilities, economic and organizational situation of Calzado Eclipse; Needs were determined such as: they do not have an accounting system, the way of determining the budgets is empirical, an adequate control of the three elements is not being carried out and their organizational form would make it more efficient in the development of daily activities.
These situations are intended to be solved through the following proposals.
- Accounting System Proposal: Implementation of an accounting system that allows the collection of company information that is generated as a result of the development of its operations, based on accounting supports, forms, reports, books, etc. and that presented to the manager help him in making financial decisions. (It will be developed in the costing proposal) Proposal of the budget system: For the development of this proposal, a tool will be disclosed that facilitates administration by objectives, establishing for the administration the goals to be achieved, expressed in monetary terms; this thanks to the budgets that are implemented in the eclipse shoe company; This is why they will carry out and formulate some budgets to implement in the company, in order to measure or achieve future goals and objectives proposed by the organization.
4.2 JUSTIFICATION
In a competitive business environment such as the footwear sector, they make organizations remain in constant technological innovation, with excellent product quality, and high levels of efficiency and effectiveness that allow them to remain in the market.
4.3 THEORETICAL FRAMEWORK
4.3.1 Definition of terms
- OBJECTIVES: Goals towards which the efforts and resources of the company should be focused. Three are basic: survival, growth and profitability. POLICIES: A series of principles and lines of action that guide behavior towards the future. PLANS: Set of decisions to achieve the proposed objectives. STRATEGY: Art of directing operations. Way of acting before certain situation. PROGRAM: Each of the specific parts of a plan to which the necessary resources are assigned to achieve the proposed goals. ORGANIZE: Allocate human, economic and financial resources, structuring them in a way that allows reaching the companies' goals. RUN:Put plans into action. CONTROL: Compare what was planned against what has been executed. It includes the assignment of responsibilities and the measurement of the forecasts regarding variations and causes thereof. PREVENT: Determine in advance what you will produce.
4.3.2 Budget
The budget is the programmed estimate, in a systematic way, of the operating conditions and the results to be obtained by an organization in a given period. He also says that the budget is a formal quantitative expression of the objectives that the administration of the company intends to achieve in a period, with the adoption of the necessary strategies to achieve them.
The budgeting process tends to reflect in a quantitative way, through budgets, the objectives set by the company in the short term, by establishing the appropriate programs, without losing the long-term perspective, since it will determine the plans that They will allow the achievement of the ultimate goal to which the management of the organization is oriented.
Budgets serve as a means of communicating the plans of the entire organization, providing the bases that will allow evaluating the performance of the different segments, or areas of activity. The process culminates with budgetary control, by means of which the result of the actions undertaken is evaluated, allowing, in turn, to establish an adjustment process that enables the setting of new objectives.
Budget objectives
- Plan comprehensively and systematically all the activities that the company must develop in a given period. Control and measure the quantitative and qualitative results, and set responsibilities in the different dependencies of the company to achieve compliance with the planned goals. Coordinate the different centers of cost to ensure the running of the company in an integral way.
Purposes of the budgets
- Plan the results of the organization in money and volumes. Control the management of income and expenses of the company. Coordinate and relate the activities of the organization. Achieve the results of periodic operations.
Budget classification
Budgets can be classified from different points of view, namely:
According to flexibility
- Rigid, static, fixed or assigned They are those that are elaborated for a single level of activity and do not allow necessary adjustments to be made due to the variation that occurs in reality. They leave aside the environment of the company (economic, political, cultural, etc.). Budgets of this type were previously used in the public sector. Flexible or variable, they are prepared for different levels of activity and can be adapted to the changing circumstances of the environment. They are widely accepted in the field of modern budgeting. They are adaptive dynamics, but complicated and expensive.
According to the period of time
- Short term. They are those that are carried out to cover the planning of the organization in the cycle of operations of a year. This system is adapted to countries with inflationary economies. Long-term. This type of budget corresponds to the development plans that are generally adopted by states and large companies.
- According to the field of application in the company
- Operational or economic. They take into account the detailed planning of the activities that will be carried out in the period after which they are carried out, and their content is summarized in a Profit and Loss Statement. These budgets include:
- Sales Budgets: They are generally prepared by months, geographic areas and products. Production Budgets: They are commonly expressed in physical units. The information needed to prepare this estimate includes machine types and capacities, economical quantities to produce, and material availability. Purchase Budget: It is the budget that provides for purchases of raw materials and / or merchandise that will be made during a certain period. They are generally made in units and costs. Production-Cost Budget: Sometimes this information is included in the production budget. By comparing the cost of production with the selling price, it shows whether the profit margins are adequate.Cash flow budget: It is essential in any company. It must be prepared after all other estimates have been completed. The flow budget shows the anticipated receipts and expenses, the amount of working capital. Master Budget: This budget includes the main activities of the company. It brings together and coordinates all the activities of the other budgets and can be conceived as the "budget budget".
- Treasury Budget: Takes into account the predicted estimates of funds available in cash, banks and easy-to-carry values. It can also be called cash flow or cash flow budgeting because it is used to forecast the monetary resources that the organization needs to develop its operations. It is formulated for short periods monthly or quarterly. Capitalizable expenditure budget: It is the one that controls, basically all investments in fixed assets. It allows evaluating the different investment alternatives and the amount of financial resources required to carry them out.
- According to the sector of the economy in which they are used
- Public Sector Budgets. they are those that involve the plans, policies, programs, projects, strategies and objectives of the State. They are the most effective means of controlling public spending and they contemplate the different alternatives for allocating resources for expenses and investments. Private Sector Budgets. They are used by private companies, They are also known as business budgets. They seek to plan all the activities of a company.
Budgeting principles
- Principles of Forecasting: Predictability, Quantitative Determination and, Objective. Planning Principles: Forecasting. Costability, Flexibility, Unity, Trust, Participation, Opportunity and, Accounting by areas of responsibility. Principles of organization: Order and Communication. Principles of management: Authority and Coordination. Principles of control: Recognition, Exception, Standards and, Cost Awareness.
Budget calendar
It is the agenda in which the execution and control (evaluation) of the budget are defined over time. It depends on the type of organization and can be daily, weekly, biweekly, monthly, quarterly, semi-annually or annually.
Budget organization
Every organization, when formulating its plans, must specifically define the attributions and responsibilities, so that each person knows how to act without fear of overreaching or injuring the rights of other people. An organic and objective plan shows management who must be held accountable for each phase on the go. Budget purposes
Addressing a good budget
4.4 MASTER BUDGET
It is a Budget that provides an overall plan for an upcoming financial year. It is generally set at one year, and should include the utility objective and the coordinated program to achieve it.
It also consists of forecasting about an uncertain future because the more accurate the budget or forecast, the better the planning process will be, set by the Company's senior management.
Benefits:
- Define basic objectives of the company. Determine the authority and responsibility for each of the generations. It is opportune for the coordination of the activities of each unit of the company. It facilitates the control of the activities. It allows to carry out a self-analysis of each period. The company's resources must be managed effectively and efficiently.
Limitations:
- The Budget is only an estimate and it is not possible to establish exactly what will happen in the future. The budget should not replace the administration, on the contrary, it is a dynamic tool that must adapt to the changes of the company. Its success depends on the effort. that applies to each event or activity. It is putting too much emphasis on the data from the budget. This may cause the administration to try to adjust it or force them into false facts.
Preparation of the master budget
The starting point of a master budget is the formulation of a long-term goal by management. This process is known as "strategic planning."
The budget is used as a vehicle to guide the company in the desired direction, once the budget is drawn up, it serves as a useful tool in cost control.
The first step in developing the master budget is the sales forecast, the process ends with the preparation of the statement of budgeted income, the cash budget and the budgeted balance sheet.
Approaches:
- Top management approach.- Sales, production, finance and administration executives should forecast sales based on experience and knowledge of the company and the market.Organization based approach.- He forecast starts from below With each of the sellers, the advantage is that all levels of the company participate in some way in the development of the budget estimate.
4.3.1 DEVELOPMENT OF THE MASTER BUDGET
Operating budgets
They take into account the detailed planning of the activities that will be carried out in the period after which they are carried out, and their content is summarized in a Statement of Profits and Losses.
Sales Budget
A sales budget is the representation of a scheduled estimate of sales, in quantitative terms, made by an organization.
The sales budget is the first step to make a master budget, which is the budget that contains all the planning.
If the sales plan is not realistic and the forecasts have not been carefully and accurately prepared, the next steps in the budgeting process will not be reliable, since the sales budget supplies the data to prepare the production, purchase, and production budgets. of sales expenses and administrative expenses.
- STEPS TO MAKE A SALES BUDGET
Each of the steps that the company must take to prepare a sales budget is discussed below. However, these steps can be modified and executed in different ways, depending on the characteristics of the business and the skills of the administration.
- Prepare Sales Forecasts
A forecast is a quantified statement or assessment of future conditions surrounding a particular situation or matter, based on one or more explicit assumptions.
Sales forecasts are an important source of information in the development of resource management strategies and commitments, so they must be prepared before any decision and indicate probable sales under various alternative assumptions.
Industry sales forecast
These sales reflect the business potential that can be encompassed by all the companies in the sector or those that constitute real competition.
The expected sales of the competition merit knowledge of factors such as business trends, employment level, installed capacity, product policies and the intention to expand its offer through investment projects. It is very important to maintain reliable and updated information systems.
Company sales forecast
The company's sales forecasts are set based on its market share. Management must establish whether or not it is feasible to achieve the desired participation from the recognition of productive capacities, the situation of the company, the current state of intervention and the rational study of the marketing policies that can be implemented.
- Compile Other Relevant Data
When developing a budget, all other relevant information should be gathered and evaluated. This information must be related to both restrictions and opportunities. The main limitations to be evaluated are:
- Manufacturing capacity; There is no point in planning a higher volume of sales than can be produced, nor is it convenient to operate a plant beyond its economic capacity. Sources of supply of raw materials and general supplies. Availability of key people and a workforce; if significant increases in sales and production are planned. Capital availability; to finance production. Availability of alternative distribution channels; redesign of old products, introduction of new products, as well as changes in sales territories. Both the effects and the expected actions on potential competitors must be evaluated.
- Design formats for preparing this budget
Eclipse footwear
Production Units Budget
Year
Production Order No.
Product:
Reference No.
| PERIOD | I | II | III | IV | YEAR |
| PROJECTED SALES | |||||
| FINAL INVENTORY | |||||
| TOTAL NEEDS | |||||
| INITIAL INVENTORY | |||||
| TOTAL TO PRODUCE |
- Development of a Sales Planning
Using the information provided in the previous steps, management develops a sales plan.
The main purposes of a sales plan are:
- Reduce uncertainty about future revenue. Incorporate management judgments and decisions in marketing plans. Provide information needed to develop other elements of the master budget. Facilitate administrative control of sales activities.
A sales plan comprises two different, but related plans: the strategic plan and the tactical sales plan.
Strategic sales plan
It is one that develops over the long term, normally 5 or 10 years and it establishes the alternatives for courses of action to face changes in the environment. It involves an in-depth analysis of potential market futures, such as changes in population, the general state of the economy, industry projections, and company goals.
The administration's long-term strategies will affect areas such as long-term pricing policy, new product development and current product innovation, new directions for marketing efforts, expansion or changes in channels of marketing and cost patterns.
Tactical sales plan
It is one that is developed in the short term, for twelve months, initially detailing the plan by quarters, and by months for the first quarter. At the end of each month or quarter of the year covered, the sales plan is reviewed and modified by adding a future period, while removing the period just ended. Accordingly, tactical sales plans are subject to review and modification on a quarterly basis. In addition, it must be detailed; by products, by marketing areas.
Product lines on a sales budget
Determining the number and variety of products a company plans to sell is crucial in developing a sales budget. Both strategic and tactical plans should include tentative decisions about new product lines to be introduced, product lines planned to discontinue, innovations and product mix.
- Factors that affect the volume of sales Specific factors.
Adjustment factors.
They are transitory disturbances that affect the volume of sales. These adjustment factors will tell us what actual sales might have been if such shocks had not occurred.
The factors of change
These are new modalities introduced by the average administrative staff, with lasting repercussions on the volume of sales.
Changes in the product: are those that change the appearance, quality or design of the product. They have a certain influence on costs and the virtue of attracting customers as a magnet; either by adding qualities to the product that make it more attractive, or because they constitute a condition of advantage when purchasing it.
Changes in production: are those readjustments in the rhythm and amount of production, aimed at covering extraordinary or urgent orders, and reducing costs. Or it can also be the installation of a quality control system; which will normalize the product and increase its demand.
Changes in market conditions: are those operated in terms of market potential. These changes could be due to:
Executions of large public or private works; therefore the citizenship will receive higher income and will increase their purchasing power; making itself felt, therefore, the effects of the "Expenditure Multiplier".
Changes in the sales policy: are all those, by means of which the conditions under which sales have been carried out are varied; such as; change in prices, expansion of services, product demonstrations, radical intensification of advertising, improvements in distribution systems, new incentives for sellers, expansion of credit to customers, better payment facilities, etc.
Growth factors.
Every well-served customer tends to buy more, and as their purchasing power increases, they will buy larger quantities. As the population increases, the sales of the good commercial credit company will increase. As the development of the industry increases, the operations of the companies in that industry tend to increase.
- General economic strength.
- National Consumer Price Index. Gross National Product. Per-Capita Income. Sale and Production by Branch of Activity. Potential market and its geographical distribution. Establishment of new companies. Loss in the purchasing power of the currency. Wholesale and retail prices. Retail. Occupation and unemployment. Loans granted. Purchase and sale of securities on the stock exchange, etc. Regional and local trends and variations, normally referred to the economic conditions of a particular legal or regional market. Seasonal variations. Product classification according to its economic sensitivity.
- Influence of management
- Changes in the type of product. Change in the design or type of article to adapt it to a particular area or market. Restriction or expansion of the offer. Advertising policy. Through different channels and scales: Cinema, radio, television, newspapers, specialized magazines, etc.; National, regional or local scale. Price policy.
- METHODS FOR FORECASTING
- By Identity Executive Voting. It consists of a formal vote by the entity's governing body, based on ideas and opinions about sales possibilities for a future period. Statistical analysis. It consists of the statistical study on sales trends of the entity, considered in isolation or relating it to the general business trend or to certain external factors, whose influence on it is important. Semi-average method.It is very simple even if not very suitable; It consists of dividing the period under study into two equal parts and determining a year that does not constitute half of the series, the averages are computed dividing the total sales of each of the two series, by the number of years to which The same refers, and capture these semi-averages in a coordinate graph, drawing a line to join them and that would be indicating the trend of the entity's sales. Moving Average Method.The direct and important effect of this method is that the cyclical fluctuations are averaged and the influence of irregular fluctuations is eliminated, which are normally shorter than the cyclical ones; in practice it is difficult to select a period that satisfies these theoretical considerations, because the successive cycles of an entity vary considerably in its duration. Regression Method. It is also called as correlative analysis and is developed based on the straight line formula; The use of this equation is normally used to describe a long-term trend and its application in the correlative analysis is similar. Least Squares Method.It can be used to compute the trend of a straight or curved line; in this case the developed theory is limited to the method to compute the trend of the straight line by the method of least squares; calculating the trend of the curved line uses the same principles, but involves more complicated mathematics; trend estimates are computed in such a way that, for example: the sum of the squared deviations of the actual sales in relation to the estimated sales reaches a minimum, hence the term least squares.
- BUDGETING METHODS
- Direct Estimates of Agents and Sellers: It is characterized by being a formal method whose guide is analytical data from the past and whose basis are the client-entity commitments, being the same nature the partial budgets that are reached, the collars must be concentrated to obtain the sales summary. Economic - Administrative Method: The most complicated thing in the application of this method resides in gathering, ordering and valuing the required internal and external information, basically the economic data. Theoretically it is applicable to any type of entity; however, it could be expensive for medium and small entities; its advantage is fundamentally completeness, being one of the most technical and reflecting this in greater accuracy.
Production budget
They are estimates that are closely related to the sales budget and the desired inventory levels.
In reality the production budget is the projected sales budget and adjusted for the change in inventory, first you have to determine if the company can produce the quantities projected by the sales budget, in order to avoid an exaggerated cost on hand of busy work.
Elaboration of a production program:
It consists of estimating the time required to carry out each activity, avoiding an unnecessary expense in payment of occupied labor.
Once the sales budget has been determined, the production plan must be drawn up. This is important since the entire requirements plan with respect to the different inputs or resources that will be used in the production process depends on it.
To determine the quantity to be produced of each of the lines that the organization sells, the following variables must be considered:
- Budgeted sales for each line Desired ending inventories for each line type Starting inventory for each line
Production Budget per line
Budgeted Sales + Desired Finished Inventory of Finished Items -Started Inventory of Finished Items = Production budget per line
The previous formula assumes that inventories in process have little significant changes. If not, they should be considered within the analysis to determine the production of each line.
Until now, the need to know the inventory levels at the beginning and at the end of the productive period has been raised, however, within this period it is necessary to determine what is the desired policy for each company regarding production.
The most common policies are:
- Stable production and variable inventory. Variable production and stable inventory. Combination of the previous two
Material requirement budget
They are estimates of purchases prepared under normal production conditions, as long as there is no lack of materials this allows the quantity to be set on a certain standard for each type of product as well as the quantity budgeted for each line, it must respond to the requirement production, the purchasing department must prepare the program that is consistent with the production budget, if there is a need for a greater requirement, the flexibility of the first budget will be taken for a timely expansion and thus cover the production requirement.
Budget labor
It is the diagnosis required to have a diversity of human factor capable of satisfying the planned production requirements.
Indirect labor is included in the indirect manufacturing cost budget, it is essential that the person in charge of the staff distribute it according to the different stages of the production process to allow 100% use of the capacity of each worker.
Components:
- Diverse personnel Amount of hours required Amount of quarterly hours Value per unit hour
Manufacturing expense budget
They are estimated to be directly or indirectly involved in the entire stage of the production process, they are expenses that must be charged to the cost of the product.
Production cost budget.
They are estimates that specifically intervene in the entire unit manufacturing process of a product, that is to say that from the total budget of the material requirement, the quantity required per type of line produced must be calculated, which must agree with the production budget.
Eclipse footwear
Production Budget
Year ___
Production Order No.
Product: Lady's shoe
Reference No.
| PERIOD | I | II | III | IV | YEAR ___ |
| RAW MATERIAL BUDGET | |||||
| LABOR BUDGET | |||||
| CGF BUDGET | |||||
| TOTAL AVERAGE BUDGET |
Characteristics:
- Only the materials required for each line or mold must be considered. The cost must be estimated. Not all of them require the same materials. The final value must coincide with the unit cost established in the cost of production.
Selling budget
It is the Budget of greater care in its management due to the expenses it causes and its influence on Financial expenses.
It is considered as projected estimates that originates during the entire marketing process to ensure its placement and acquisition in the consumer markets.
Eclipse footwear
Sales Expense Budget
Year ___
| PERIOD | I | II | III | IV | YEAR ___ |
| IMP. INDUSTRY AND COMMERCE | |||||
| ADVERTISING | |||||
Characteristics:
- It includes all Marketing. It is the basis for calculating the Profit Margin. It is permanent and expensive. It ensures product placement. Wide consumer market. It is done at all costs.
Disadvantages:
- It does not generate profitability. It can be misused.
Administrative expenses budget
Considered as the core part of any budget because most of it is allocated; They are estimates that cover the immediate need to have all kinds of personnel for its different units, seeking to make the system operational.
It should be as austere as possible without this implying a delay in the management of the company's plans and programs.
Eclipse footwear
Administration Expenses Budget
Year ___
| PERIOD | I | II | III | IV | YEAR ___ |
| WAGES | |||||
| ACCOUNTING ADVICE | |||||
| MAINTENANCE | |||||
| STATIONERY | |||||
| SERVICES | |||||
| DEPRECIATION EQU. COMPUT. | |||||
| LEASE |
characteristics
- Remuneration is set according to the economic reality of the company and not parallel to inflation. They are indirect expenses. They are expenses considered within the price that is set for the product or service. Governing their legal aspect in current labor legislation.
Observations
To calculate the net total, the deduction of withholdings and contributions by law of each country must be calculated to the total.
The objective is to determine in advance for the projection period all expenses for the period that do not correspond directly to financing or sales management.
The items of administrative expenses must be determined according to the needs derived from the organizational structure and the sales administration.
They will be classified as follows:
Salaries, social charges, amortizations, insurance, office maintenance, stationery and bookstore supplies, administration expenses.
These expenses must be adjusted, classifying the different items that make them up according to the period or month in which it is estimated that they will originate. Then, the coefficients representative of the variations in the purchasing power of the currency that have occurred from the estimated period or month of origin to the date of the projection closing period must be applied.
Shopping budget
This estimate specifies the desired quantities of each material and part and the approximate dates when they are needed; therefore, a purchasing plan must be developed. The materials and parts purchase budget specifies the quantities to be purchased of these supplies, the estimated cost and the required delivery dates.
Eclipse footwear
Shopping budget
Year ___
Production Order No.
Product:
Reference No.
| PERIOD | I | II | III | IV | TOTAL |
| UNITS | |||||
| PURCHASE PRICE | |||||
| TOTAL PURCHASES |
Financial budget
It consists of setting the sales investment estimates, miscellaneous income to finally develop a cash flow that measures the economic and real state of the company.
Capital budget
It includes the entire table of machine and equipment renewal that has been depreciated due to its constant use and the intangible means aimed at protecting the investments made, either for high costs or for reasons that ensure the production process and expand coverage in other markets..
Understands:
- Buy tangible asset Buy intangible asset.
Cash flow budget
The statement of cash flows is the basic financial statement that shows the cash generated and used in operating, investing and financing activities. The change of the different items of the Balance Sheet that affect the cash must be determined for its implementation.
General objective:
The objective of this statement is to present pertinent and concise information regarding the cash collections and disbursements of an economic entity during a period so that the users of the financial statements have additional elements to examine the entity's ability to generate future flows of Cash, to assess the ability to meet its obligations, determine internal and external financing, analyze changes in cash, and establish the differences between net income and collections and disbursements.
To meet the general objective, the variation that the cash has had during the period must be clearly shown compared to the activities of:
- Operation: Those that affect the results of the company are related to the production and generation of goods and the provision of services. Cash flows are generally a consequence of cash transactions and other events that go into determining net profit. Investment: They include the granting and collection of loans, the acquisition and sale of investments and all operations considered as non-operational. Financing: determined by obtaining resources from the owners and the reimbursement of returns. All changes in liabilities and equity other than operating items are considered.
The effects of investment and financing activities that change or modify the financial situation of the company, but that do not affect the cash flows during the period must be disclosed at the time. Additionally, a reconciliation between net income and cash flow must be presented.
Cash budget
The purpose of this budget is to obtain timely information on the behavior of money flows, in such a way that it allows you an optimal administration of liquidity.
The liquidity of a company is its ability to convert assets into cash and, in general, to have adequate means of payment to timely fulfill its commitments.
When diagnosing the behavior of the cash flow, your company must detect in which periods there will be shortages or surpluses of cash and how much they will amount, as well as determine if the collection and payment policies are optimal, since that depends on when there are entries for payment to customers, or outlets for payment to suppliers.
This budget compares cash inflows (or outflows) and cash outlays (or outflows).
In some periods, the inputs could be large enough to cover the outputs, in which case, part of these inputs could be invested, so that they could generate interest; On the contrary, there may be periods in which the entries are not enough to cover the exits, in which case, it will be necessary to plan how to cover those shortages, either by keeping a reserve in the periods when there are surpluses or considering the possibility of obtaining funds borrowed.
Opinions vary as to how much cash should be kept. Some companies prefer to maintain a reasonable balance according to their needs in cash and banks, and have the rest invested in securities that can be easily converted into cash; others, on the other hand, prefer to keep small cash reserves and rely on bank loans when necessary. It can be said that the cash budget is a forecast of cash inflows and outflows, which diagnoses shortages or future surpluses and, consequently, requires planning the investment of surpluses and the recovery or obtaining of shortages.
Cash inflows can come from:
- Cash sales Customer collections Interest on investments New contributions from partners Loans obtained Sales of assets Cash outflows may be due to: Payment to suppliers Payroll Payment of taxes Dividend payments Acquisition of Assets. Payments of other liabilities.
The result between cash inflows and outflows gives us the cash flow generated in the budgeted period that, added to the initial cash balance, will give us the cash balance at the end of the budget period.
Investment budget
The investment budget is a plan for the acquisition of different properties such as buildings, machinery, equipment and other types of long-term investments. It is necessary that you take into account these plans to have the necessary cash for your purchase, or for the monthly payment that you would have to make, if you buy them in installments.
For example, if the income you will get is not enough to cover planned projects, it will be necessary to postpone them or borrow to carry them out.
Budgeted income statement
Planning, when referring to the annual budget, should be aimed at achieving a convenient situation for the company in a period, which can be achieved by preparing the budgeted financial statements.
Hence the importance of carefully preparing the projected financial statements, because they will be the frame of reference for the entire organization.
The budgeted income statement is the integration of the different budgets that make up the operating budget. As such, it reflects the net book value that the company plans to achieve after one year (or by periods).
This projection serves as the basis for detecting and proposing improvements in costs and expenses.
The control of its execution, of which reports will be issued periodically and regularly, allows obtaining specifications of deviations for:
- Adjust budgets, correct them in a timely manner, assign responsibilities.
Thus, control becomes a true process of feedback to the planning and control system.
Analysis techniques are applied to this income statement: vertical, horizontal, relationships, indices (liquidity, solvency, indebtedness), margins, rotation, variations in working capital, operating advantage, break-even point, margin of safety, etc., for analysis and interpretation.
It also makes it possible to know in advance that indicator set as one of the company's objectives: profitability.
Because the events have not yet occurred or the programs have not been executed, there is time to look for another alternative, to elaborate, to design other plans and budgets with greater feasibility to achieve the proposed goals.
Components of the budgeted income statement
SALES BUDGET
(-) SALES COST BUDGET: This gathers the information from the previous budgets, to determine the value that the production function has managed for the company. It is useful to analyze this budget monthly, as its variations directly affect the projected results for the business. It can even be prepared separately for each line of business (previously distributing fixed costs). The responsibility for preparing this program is usually the accounting function, with the support of the line managers (Production, Administration and Finance)
(=) GROSS PROFIT
(-) BUDGET FOR SALES AND ADMINISTRATION EXPENSES:
Within the cost and expense structure of the company, there are items that correspond to all those expenses incurred outside the scope of production. These costs ("non-production costs") are generated by the areas complementary to the production function and generally the person in charge is the head of each area.
Thus, there are several budgets, among which are the sales and marketing expenses budget, the distribution and transportation expenses program, the administration and general services program. It is usual for these programs to be prepared with a monthly detail of the projected expenses, where only the sales and marketing expenses are differentiated by products (model). For the elaboration of these budgets (which can be as many or as few, according to the line of business and the diversity of functions), it is important to recognize fixed and variable expenses (similar to the case of indirect manufacturing costs).
(=) OPERATIONAL PROFIT
(+) NON-OPERATING INCOME
(-) NON-OPERATING EXPENSES
(=) PROFIT BEFORE TAX
(*.34%) INCOME TAX
LEGAL RESERVE (10% ON PROFIT)
(=) PROFIT FOR THE YEAR
Budgeted balance sheet
To prepare the budgeted balance sheet, the last step is to see what changes the accounts that make up your assets, liabilities and capital will undergo, for which you will have to perform the following calculations:
- Cash in cash and banks. The final balance will be the one obtained in the cash budget. Accounts receivable. The final balance is the cost obtained in the operating budget of both final inventory of raw materials and final inventory of finished items. Non-current. Depending on the asset in question, new acquisitions are added to the opening balance and sales corresponding to said assets are subtracted. The same procedure applies to depreciation. Accounting capital. Social capital. It will increase when there are new contributions and it will decrease due to capital losses. Accumulated profits. The balance corresponds to the total profits retained by the company in the years prior to the budget. Profit for the year. The balance comes from the profit obtained in the budgeted income statement.
Acumulated utilities:
The balance represents the profits retained by the company corresponding to previous periods.
Usefulness of the exercise:
The balance corresponds to the operating profit obtained in the budgeted Statement of Income.
Finally, the balance sheet together with the income statement make up the company's master budget, which will be very useful for comparing what is planned with what will actually happen, in addition to having the necessary tools to make decisions and improve operations. of your company.
4.5 DESCRIPTION OF THE PROCEDURE AND DEVELOPMENT PROPOSAL FOR THE IMPLEMENTATION OF BUDGETS
Eclipse footwear has the following machinery for the development of its activities:
| MACHINERY, EQUIPMENT AND FURNITURE AND SETS | |||
| two | Pole machine | 1,500,000 | 3,000,000 |
| one | Mower | 1,200,000 | 1,200,000 |
| one | Finishing machine | 1,000,000 | 1,000,000 |
| two | Bag Gluer | 800,000 | 1,600,000 |
| one | Compressor | 1,500,000 | 1,500,000 |
| one | manual die cutter | 500,000 | 500,000 |
| TOTAL | 8,800,000 | ||
| 6 | Tables | 60,000 | 360,000 |
| two | Desks | 1,800,000 | 3,600,000 |
| TOTAL | 3,960,000 |
Eclipse footwear has the following orders for two of its products by units, ladies shoe (reference 350) and girl shoe (reference 351).
The company wants to end at the end of the period with an inventory stock of 10% of the total of each item. The required units are increased by customer orders by 7% for each production period. The initial inventory for Ref. 350 is 900 units and for Ref. 351 of 950, the ending inventory for the last period is 2600 for Ref. 350 and 5100 for Ref. 351.
The necessary inputs for the production of the production required by the clients are:
| Quantity | Description | Vr. Unitary | Vr. Total |
| 3,300 | Synthetics | 1,500 | 4,950,000 |
| 3,300 | Threads | 200 | 660,000 |
| 3,300 | Linings | 500 | 1,650,000 |
| 3,300 | Marquilla | 350 | 1,155,000 |
| 3,300 | Sole | 4,000 | 13,200,000 |
| 3,300 | Template | 300 | 990,000 |
| 3,300 | Laces | 250 | 825,000 |
| 3,300 | Glue | 700 | 2,310,000 |
| 3,300 | Toecap | 150 | 495,000 |
| 3,300 | Packing | 300 | 990,000 |
| 3,300 | Buttress | 150 | 495,000 |
| 3,300 | Foam | 100 | 330,000 |
| 28,050,000 |
These Supplies are calculated for the requisition of the first month and will increase equal to the increase in sales.
WORKFORCE
| CUNITIES TO PROD | Job Description | PAY PER PAIR | Vr. Total |
| 3,300 | Cutters | 600 | 1,980,000 |
| 3,300 | Shipowners | 1,000 | 3,300,000 |
| 3,300 | Trimmers | 800 | 2,640,000 |
| 3,300 | Fitter | 600 | 1,980,000 |
| 3,300 | Dildo | 500 | 1,650,000 |
| 3,300 | Template | 400 | 1,320,000 |
| 19,800 | 12,870,000 |
The value of labor is obtained by multiplying the number of pairs to be produced by the cost of the labor of one pair.
Eclipse footwear
Production Units Budget
Year 2007
Production Order No. 201
Product: Lady's shoe
Reference No. 350
| PERIOD | I | II | III | IV | YEAR 2007 |
| PROJECTED SALES | 2500 | 2675 | 2862 | 3063 | 11100 |
| FINAL INVENTORY | 250 | 268 | 286 | 3100 | 3100 |
| TOTAL NEEDS | 2750 | 2943 | 3148 | 6163 | 14200 |
| INITIAL INVENTORY | 900 | 500 | 268 | 286 | 900 |
| TOTAL TO PRODUCE | 1850 | 2693 | 2880 | 5877 | 13300 |
Eclipse footwear
Production Units Budget
Year 2007
Production Order No. 201
Product: Girl's shoe
Reference No. 351
| PERIOD | I | II | III | IV | YEAR 2007 |
| PROJECTED SALES | 2000 | 2140 | 2290 | 2450 | 8880 |
| FINAL INVENTORY | 200 | 214 | 229 | 2600 | 2600 |
| TOTAL NEEDS | 2200 | 2354 | 2519 | 5050 | 11480 |
| INITIAL INVENTORY | 950 | 200 | 214 | 229 | 950 |
| TOTAL TO PRODUCE | 1250 | 2154 | 2305 | 4821 | 10530 |
Eclipse footwear
Shopping budget
Year 2007
Production Order No. 201
Product: Lady's shoe
Reference No. 350
| PERIOD | I | II | III | IV | TOTAL |
| Units | 1850 | 2693 | 2880 | 5877 | 13300 |
| Purchase Pr. | 8500 | 8500 | 8500 | 8500 | 8500 |
| TOTAL | 15,725000 | 22,890,500 | 24,480,000 | 49,954,500 | 113,050,000 |
Eclipse footwear
Shopping budget
Year 2007
Production Order No. 201
Product: Girl's shoe
Reference No. 351
| PERIOD | I | II | III | IV | TOTAL |
| Units | 1250 | 2154 | 2305 | 4821 | 10530 |
| Purchase Pr. | 8500 | 8500 | 8500 | 8500 | 8500 |
| TOTAL | 10,625,000 | 18,309,000 | 19,592,500 | 40,978,500 | 89,505,000 |
Eclipse footwear
Production Budget
Year 2007
Production Order No. 201
Product: Lady's shoe
Reference No. 350
| PERIOD | I | II | III | IV | YEAR |
| Raw material. | 15,725,000 | 22,890,500 | 24,480,000 | 49,954,500 | 113,050,000 |
| Workforce | 7,215,000 | 10,502,700 | 11,232,000 | 22,920,300 | 51,870,000 |
| General Cost | 481000 | 700,180 | 748,800 | 1,528,020 | 3,458,000 |
| Total | 23,421,000 | 34,093,380 | 36,460,800 | 74,402,820 | 168,378,000 |
Eclipse footwear
Production Budget
Year 2007
Production Order No. 201
Product: Girl's shoe
Reference No. 351
| PERIOD | I | II | III | IV | YEAR |
| Raw material | 10,625,000 | 18,309,000 | 19,592,500 | 40,978,500 | 89,505,000 |
| Workforce | 4,875,000 | 8,400,600 | 8,989,500 | 18,801,900 | 41,067,000 |
| General Cost | 325,000 | 560,040 | 599,300 | 1,253,460 | 2,737,800 |
| TOTAL | 15,825,000 | 27,269,640 | 29,181,300 | 61,033,860 | 133,309,800 |
Eclipse footwear
Administration Expenses Budget
Year 2007
| PERIOD | I | II | III | IV | YEAR 2007 |
| WAGES | 3000000 | 3000000 | 3000000 | 3000000 | 12000000 |
| ACCOUNTING ADVICE | 360000 | 360000 | 360000 | 360000 | 1440000 |
| MAINTENANCE | 360000 | 36000 | 360000 | 360000 | 1440000 |
| STATIONERY | 120000 | 120000 | 120000 | 120000 | 480000 |
| SERVICES | 90000 | 91000 | 92000 | 93000 | 366000 |
| Computing depreciation. | |||||
| LEASE | 1290000 | 1290000 | 1290000 | 1290000 | 5160000 |
| Total |
Eclipse footwear
Sales Expense Budget
Year 2007
| PERIOD | I | II | III | IV | YEAR 2007 |
| Impto. Industry and Commerce | 48000 | 48000 | 48000 | 48000 | 192000 |
| Advertising | 210000 | 210000 | 210000 | 210000 | 840000 |
| Total |
| DESCRIPTION | 2007 | 2008 | 2,009 | 2,010 | 2011 |
| ACTIVE | |||||
| Available | |||||
| Box | 11,728,606,311 | 20,403,832,592 | 29,710,825,979 | 39,602,917,420 | 50,082,238,741 |
| Accounts receivable | 63,070,000 | 68,458,701 | 74,307,812 | 80,656,672 | 87,547,978 |
| Inventories | 32,210,750 | 34,962,836 | 37,962,355 | 41,212,298 | 44,740,301 |
| Total current assets | 11,633,325,561 | 20,300,411,055 | 29,598,555,811 | 39,481,048,450 | 49,949,950,462 |
| Machinery and equipment | 8,800,000 | 8,800,000 | 8,800,000 | 8,800,000 | 8,800,000 |
| Office team | 3,960,000 | 3,960,000 | 3,960,000 | 3,960,000 | 3,960,000 |
| Computer equipment | 1,900,000 | 1,900,000 | 1,900,000 | 1,900,000 | 1,900,000 |
| (-) Accumulated depreciation | 1,656,000 | 3,312,000 | 4,968,000 | 6,624,000 | 8,280,000 |
| Machinery and equipment | 880,000 | 880,000 | 880,000 | 880,000 | 880,000 |
| Office team | 396,000 | 396,000 | 396,000 | 396,000 | 396,000 |
| Computer equipment | 380,000 | 380,000 | 380,000 | 380,000 | 380,000 |
| Total prop.plant.and equip. | 13,004,000 | 11,348,000 | 9,692,000 | 8,036,000 | 6,380,000 |
| TOTAL ASSETS | 11,620,321,561 | 20,289,063,055 | 29,588,863,811 | 39,473,012,450 | 49,943,570,462 |
| PASSIVE | |||||
| Financial obligations | |||||
| National banks | 712,720,800 | 712,720,800 | 648,896,800 | 502,799,745 | 328,123,450 |
| Providers | |||||
| Nationals | 29,733,000 | 32,273,388 | 35,178,355 | 38,261,258 | 41,612,199 |
| Debts to pay | |||||
| Taxes | 4,640,153,558 | 4,925,231,112 | 5,240,721,750 | 5,543,286,807 | 5,861,732,202 |
| TOTAL LIABILITIES | 3,897,699,758 | 4,180,236,925 | 4,556,646,594 | 5,002,225,805 | 5,491,996,553 |
| Heritage | |||||
| Social contributions | 178,180,200 | 178,180,200 | 178,180,200 | 178,180,200 | 178,180,200 |
| Legal reserve | 0 | 0 | 3,354,481,731 | 6,923,838,166 | 10,699,265,937 |
| Profits for the year | 0 | 7,900,802,003 | 11,674,593,950 | 15,690,119,940 | 19,937,476,182 |
| TOTAL ASSETS | 7,722,621,803 | 16,108,826,130 | 25,032,217,217 | 34,470,786,645 | 44,451,573,908 |
| TOTAL PAS. + PATRIM. | 11,620,321,561 | 20,289,063,055 | 29,588,863,811 | 39,473,012,450 | 49,943,570,462 |
BIBLIOGRAPHY
- Copeland, Ronald M. (1979). Administrative accounting budgets. Editorial LimusaBurbano Ruiz, Jorge. Budgets. Mc Publishing. Graw Hill.Venitzky, Guillermo. Strategic planning and budget. Editorial SAMerlo Bookstore, José. Management control and budget control. Mc Publishing. Graw Hill.Cárdenas Nápoles, Raúl Andrés. Budgets: Theory and practice. Mc Publishing. Graw Hill.
