JSC Foods Corporation

Statements of Profit or Loss

For the Years Ending the 2017 sales level. Variable operating
expense is 7.5% of sales while fixed operating
December 31, 2017
Sales…………………………….₱
52,501,085.00
Cost of sales……………….. ₱
41,954,730.00 Gross
Profit…………………. ₱
10,546,355.00 Operating
Expenses……… ₱
6,497,659.00 Operating
BUDGET PREPARATION expense is 10% depreciation of PPE
amounting to 26milion from the previous
• Sales Budget
financial year plus 500,000 new acquisition.
• Production Budget As of December 31, 2017, there are two long
term loans. Both have annual interest rate of
• Operating Budget 8%. The first loan will mature on June 30,
• Cash Budget 2018 and the remaining principal balance to
be paid on June 30, 2018 is Php 1, 250,000.
Sales Budget The second loan amounting to Php 3,000,000
which was incurred on December 31, 2017 is
• It shows the expected number of sales unit of
paid at the rate of Php 500,000 principal
a period and the expected price per unit.
balance every June 30 and December 31.
Production Budget Business Income Tax Rate is 30% of Income
before Tax.
• Calculates the number of units of product
that must be manufacture and is derived a
combination of expected sales and the
planned amount of target ending inventories.

Operating Budget

• Is a list of expenses over a time

frame(accounting period)

• Before the end of 2017, the president of JSC

Foods Corporation had instructed the Vice
president for Finance to prepare 2018
projected financial statement. Sales are
expected to increase by 10% in 2018 from
• Before the end of 2017, the president of JSC
Foods Corporation had instructed the Vice
president for Finance to prepare 2018
projected financial statement. Sales are
expected to increase by 15% in 2018 from
the 2017 sales level. Variable operating
expense is 7.5% of sales while fixed operating
expense is 10% depreciation of PPE
amounting to 26milion from the previous
financial year plus 500,000 new acquisition.
As of December 31, 2017, there are two long
term loans. Both have annual interest rate of
5%. The first loan will mature on June 30,
2018 and the remaining principal balance to
be paid on June 30, 2018 is Php 1, 250,000.
The second loan amounting to Php 3,000,000
which was incurred on December 31, 2017 is
paid at the rate of Php 500,000 principal
balance every June 30 and December 31.
Business Income Tax Rate is 30% of Income
before Tax.