<Company Name>

Annual Operating Budget for Manufacturing CompaniesInputs and Assumptions

<Year>

General Notes and Assumptions

<Document key financial planning assumptions here.>

Key Model Inputs

1. Fringe Rate for Labor

2. Number of Years for Straight-Line
Depreciation of Capital Assets
3. Tax Rate
4. Annual Financial Plan Revenue
per Employee

25%
5
30%
$225,000

<Company Name>
Annual Operating Budget for Manufacturing CompaniesExpenses by Business Unit
<Year>
Gray cells are calculated for you and generally should not be altered.
All currency amounts are in thousands.

Business Unit BudgetsOperations, Sales and Marketing, and General and Administrative
A. Operations and Capital Budgets
Operations Expenses:
Labor
Fringe benefits (benefits, training, etc.)
Depreciation
Supplies
General and miscellaneous
Total Operations Expenses

Q1
$491.25
122.81
20.50
25.00
25.00
$684.56

Q2
$543.75
135.94
22.25
25.00
25.00
$751.94

Q3
$562.50
140.63
21.63
25.00
25.00
$774.75

Q4
$592.50
148.13
23.38
25.00
25.00
$814.00

Annual Total
$2,190.00
547.50
87.75
100.00
100.00
$3,025.25

Operations Head Count Analysis by Role:

Vice president
Director
Operations manager
Operations analyst
TBD
TBD

Number of Full-Time Employees (FTEs)

1.00
1.00
1.00
2.00
3.00
3.00
5.00
6.00
6.00
15.00
15.00
16.00
0.00
0.00
0.00
0.00
0.00
0.00

1.00
4.00
6.00
16.00
0.00
0.00

1.00
4.00
6.00
16.00
0.00
0.00

Total Operations Head Count

23.00

25.00

26.00

27.00

27.00

Q1

Q2

Q3

Q4

$37.50
60.00
112.50
281.25
0.00
0.00
$491.25

$37.50
90.00
135.00
281.25
0.00
0.00
$543.75

$37.50
90.00
135.00
300.00
0.00
0.00
$562.50

$37.50
120.00
135.00
300.00
0.00
0.00
$592.50

Operations Labor Expense Breakdown by Role:

Vice president
Director
Operations manager
Operations analyst
TBD
TBD
Total Operations Labor Expense

Annual Cost
$150.00
120.00
90.00
75.00
0.00
0.00

CAPITAL ASSETS AND EQUIPMENT

Machinery and equipment
IT (servers, network hardware, etc.)
Other capital equipment
Total Capital Equipment
Depreciation Base
B. Sales and Marketing
Sales and Marketing Expenses:
Labor
Fringe benefits (benefits, training, etc.)
Marketing programs
Public relations
Travel and entertainment
Supplies
General and miscellaneous
Total Sales and Marketing Expenses
Sales and Marketing Head Count Analysis by Role:
Vice president
Director
Marketing and product managers

Q3
Q4
Purchases (Dispositions)
($20.00)
$15.00
5.00
15.00
2.50
5.00
($12.50)
$35.00

Annual Total

Depreciation amounts based on depreciation base

Annual total should equal financial plan target.
Annual total should equal financial plan target.

Q2

$5.00
0.00
0.00
$5.00

$25.00
5.00
5.00
$35.00

$405.00

$410.00

$445.00

$432.50

$467.50

$467.50

Q1
$746.25
186.56
75.00
15.00
150.00
25.00
25.00
$1,222.81

Q2
$833.75
208.44
50.00
15.00
150.00
25.00
25.00
$1,307.19

Q3
$852.50
213.13
65.00
15.00
160.00
25.00
25.00
$1,355.63

Q4
$915.00
228.75
70.00
15.00
160.00
25.00
25.00
$1,438.75

Annual Total
$3,347.50
836.88
260.00
60.00
620.00
100.00
100.00
$5,324.38

2.00
3.00
6.00

NOTES

$150.00
360.00
517.50
1,162.50
0.00
0.00
$2,190.00

Q1

Rev:

Calculation based on labor and input sheet

NOTES

Beginning Balance
$350.00
30.00
25.00
$405.00

Number of Full-Time Employees (FTEs)

2.00
2.00
2.00
2.00
2.00
2.00
5.00
6.00
6.00

NOTES
See Operations Labor Expense Breakdown by Role

Annual Total

NOTES

$375.00
55.00
37.50
$467.50

2.00
3.00
6.00

NOTES

Marketing analysts
Sales representatives
Account managers
Customer service
TBD
Total Sales and Marketing Head Count
Sales and Marketing Labor Expense Breakdown by Role:
Vice president
Director
Marketing and product managers
Marketing analysts
Sales representatives
Account managers
Customer service
TBD
Total Sales and Marketing Labor Expense

Annual Cost
$150.00
120.00
110.00
75.00
130.00
110.00
75.00
0.00

C. General and Administrative

General and Administrative Expenses:
Labor
Fringe benefits (benefits, training, etc.)
Other depreciation
Rent
Insurance
Professional services
Dues and subscriptions
Bank charges
Telephone
Recruiting
Postage
Interest
Administrativetravel and entertainment
Administrativeother supplies
Miscellaneous
Total General and Administrative Expenses
General and Administrative Head Count Analysis by Role:
Chief executive officer
Chief financial officer
Chief information officer
Vice president of human resources
Administrative staff
Human resources director
Human resources staff
Information technology director
Information technology manager
Information technology analyst
Finance director or controller
Finance and accounting
TBD
Total General and Administrative Head Count

3.00
9.00
4.00
4.00
0.00
30.00

3.00
9.00
4.00
5.00
0.00
31.00

3.00
10.00
4.00
5.00
0.00
33.00

Q1

Q2

Q3

Q4

$75.00
60.00
137.50
56.25
260.00
82.50
75.00
0.00
$746.25

$75.00
60.00
165.00
56.25
292.50
110.00
75.00
0.00
$833.75

$75.00
60.00
165.00
56.25
292.50
110.00
93.75
0.00
$852.50

$75.00
90.00
165.00
56.25
325.00
110.00
93.75
0.00
$915.00

$300.00
270.00
632.50
225.00
1,170.00
412.50
337.50
0.00
$3,347.50

Q1
$613.75
153.44
40.00
0.00
12.00
10.00
5.00
2.00
25.00
20.00
10.00
10.00
15.00
25.00
2.00
$943.19

Q2
$613.75
153.44
40.25
0.00
12.00
20.00
5.00
2.00
25.00
20.00
10.00
10.00
15.00
25.00
3.00
$954.44

Q3
$613.75
153.44
40.50
0.00
12.00
10.00
5.00
2.00
25.00
20.00
10.00
10.00
15.00
25.00
4.00
$945.69

Q4
$646.25
161.56
40.50
0.00
12.00
10.00
5.00
2.00
25.00
20.00
10.00
10.00
15.00
25.00
5.00
$987.31

Annual Total
$2,487.50
621.88
161.25
0.00
48.00
50.00
20.00
8.00
100.00
80.00
40.00
40.00
60.00
100.00
14.00
$3,830.63

Number of Full-Time Employees (FTEs)

1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
6.00
6.00
6.00
1.00
1.00
1.00
4.00
4.00
4.00
1.00
1.00
1.00
2.00
2.00
2.00
3.00
3.00
3.00
2.00
2.00
2.00
3.00
3.00
3.00
0.00
0.00
0.00
26.00
26.00
26.00

General and Administrative Labor Expense Breakdown by Role:

Chief executive officer
Chief financial officer
Chief information officer
Vice president of human resources
Administrative staff

3.00
8.00
3.00
4.00
0.00
27.00

Annual Cost
$300.00
225.00
200.00
160.00
50.00

Annual Total

NOTES

NOTES

NOTES
1.00
1.00
1.00
1.00
6.00
1.00
5.00
1.00
2.00
4.00
2.00
3.00
0.00
28.00

Q1

Q2

Q3

Q4

$75.00
56.25
50.00
40.00
75.00

$75.00
56.25
50.00
40.00
75.00

$75.00
56.25
50.00
40.00
75.00

$75.00
56.25
50.00
40.00
75.00

Rev:

3.00
10.00
4.00
5.00
0.00
33.00

1.00
1.00
1.00
1.00
6.00
1.00
5.00
1.00
2.00
4.00
2.00
3.00
0.00
28.00
Annual Total
$300.00
225.00
200.00
160.00
300.00

NOTES

Human resources director

Human resources staff
Information technology director
Information technology manager
Information technology analyst
Finance director or controller
Finance and accounting
TBD
Total General and Administrative Labor Expense

90.00
60.00
100.00
90.00
70.00
120.00
70.00
0.00

OTHER DEPRECIABLE ASSETS

Buildings
Other
Other
Total Other Depreciable Assets
Depreciation Base

22.50
60.00
25.00
45.00
52.50
60.00
52.50
0.00
$613.75
Q1

Beginning Balance
$800.00
0.00
0.00
$800.00

$0.00
0.00
0.00
$0.00

$800.00

$800.00

22.50
60.00
25.00
45.00
52.50
60.00
52.50
0.00
$613.75

22.50
60.00
25.00
45.00
52.50
60.00
52.50
0.00
$613.75

22.50
75.00
25.00
45.00
70.00
60.00
52.50
0.00
$646.25

Q2
Q3
Purchases (Dispositions)
$0.00
$0.00
5.00
0.00
0.00
5.00
$5.00
$5.00

Q4

$805.00

Rev:

$810.00

90.00
255.00
100.00
180.00
227.50
240.00
210.00
0.00
$2,487.50
Annual Total

$0.00
0.00
0.00
$0.00

$800.00
5.00
5.00
$810.00

$810.00

$810.00

NOTES

<Company Name>
Annual Operating Budget for Manufacturing Companies
<Year>
Gray cells are calculated for you and generally should not be altered.
All currency amounts are in thousands.

Pro Forma Annual Financial Statements Income Statement, Balance Sheet, and Cash Flow Summary
Head Count Summary
Operations
Sales and marketing
General and administrative
Total Head Count

Q1
23.00
27.00
26.00
76.00

Q2
25.00
30.00
26.00
81.00

Q3
26.00
31.00
26.00
83.00

Q4
27.00
33.00
28.00
88.00

Annual Total
27.00
33.00
28.00
88.00

Pro Forma Annual Income Statement

Income Statement
Revenues
Other income
Total revenues
Cost of goods sold
Gross Margin
Margin Contribution %

Q1
$4,500.00
10.00
$4,510.00
600.00
$3,910.00
86.7%

Q2
$5,000.00
10.00
$5,010.00
750.00
$4,260.00
85.0%

Q3
$5,200.00
10.00
$5,210.00
900.00
$4,310.00
82.7%

Q4
$5,500.00
10.00
$5,510.00
1,100.00
$4,410.00
80.0%

Annual Total
NOTES
$20,200.00 Taken from financial plan
40.00 Taken from financial plan
$20,240.00
3,350.00 Taken from financial plan
$16,890.00
83.4%

Checkpoint: Budgeted Revenue per Employee

Financial Plan Revenue per Employee
Expenses
Operations
Sales and marketing
General and administrative
Total Expenses
Operating Profit
Other gains or losses
Income Before Taxes
Taxes

30.0%

Net Income

NOTES

$230.00 Compared to financial plan

$225.00

$684.56
1,222.81
943.19
$2,850.56

$751.94
1,307.19
954.44
$3,013.56

$774.75
1,355.63
945.69
$3,076.06

$814.00
1,438.75
987.31
$3,240.06

$3,025.25 Taken from Operations section

5,324.38 Taken from Sales and Marketing section
3,830.63 Taken from General and Administrative section
$12,180.25

$1,059.44
$0.00

$1,246.44
$21.40

$1,233.94
($20.00)

$1,169.94
$35.00

$4,709.75
$36.40

$1,059.44

$1,267.84

$1,213.94

$1,204.94

$4,746.15

$317.83

$380.35

$364.18

$361.48

$1,423.85

$741.61

$887.49

$849.76

$843.46

$3,322.31

Q1

Q2

Q3

Q4

Pro Forma Annual Balance Sheet

Assets
Cash
Accounts receivable
Inventory
Other current assets
Total Current Assets
Operations capital assets
Other capital assets
Accumulated depreciation
Net Property, Plant, and Equipment

Beginning
Balance
$50.00
40.00
80.00
20.00
$190.00

$962.11
30.00
75.00
20.00
$1,087.11

$1,752.09
40.00
85.00
20.00
$1,897.09

$2,636.47
50.00
90.00
20.00
$2,796.47

$3,533.81
40.00
80.00
20.00
$3,673.81

Ending
Balance
$3,533.81
40.00
80.00
20.00
$3,673.81

$405.00
800.00
0.00

$410.00
800.00
60.50

$445.00
805.00
123.00

$432.50
810.00
185.13

$467.50
810.00
249.00

$467.50
810.00
249.00

$1,205.00

$1,149.50

$1,127.00

$1,057.38

$1,028.50

$1,028.50

Other assets

$100.00

$100.00

$100.00

$100.00

$100.00

$100.00

Total Assets

$1,495.00

$2,336.61

$3,124.09

$3,953.85

$4,802.31

$4,802.31

Liabilities and Equity

Accounts payable
Accrued liabilities

Beginning
Balance
$20.00
10.00

Q1
$25.00
10.00

Q2
$30.00
10.00

Q3
$20.00
10.00

Q4
$25.00
10.00

Ending
Balance
$25.00
10.00

NOTES

Other current liabilities

Total Current Liabilities

10.00
$40.00

10.00
$45.00

10.00
$50.00

10.00
$40.00

10.00
$45.00

10.00
$45.00

Long-term debt
Notes payable
Other long-term liabilities
Total Long-term Liabilities

$150.00
0.00
5.00
$155.00

$145.00
0.00
5.00
$150.00

$140.00
0.00
5.00
$145.00

$135.00
0.00
5.00
$140.00

$130.00
0.00
5.00
$135.00

$130.00
0.00
5.00
$135.00

Total Liabilities

$195.00

$195.00

$195.00

$180.00

$180.00

$180.00

Common stock
Retained earnings
Net income
Net Equity

$1,000.00
300.00
0.00
$1,300.00

$1,100.00
300.00
741.61
$2,141.61

$1,000.00
300.00
1,629.09
$2,929.09

$995.00
300.00
2,478.85
$3,773.85

$1,000.00
300.00
3,322.31
$4,622.31

$1,000.00
300.00
3,322.31
$4,622.31

Total Liabilities and Equity

$1,495.00

$2,336.61

$3,124.09

$3,953.85

$4,802.31

$4,802.31

Pro Forma Annual Cash Flow Summary

Sources of Funds
From operations
Net income
Plus depreciation
Changes in balance sheet accounts
Accounts receivable
Inventory
Accounts payable
Other liabilities
Sale of stock
Sale of assets and equipment
Sale of other assets
Other sources of funds
Other
Total Sources
Uses of Funds
Repurchase of stock
Debt retirement
Purchase of equipment and capital assets
Purchase of other assets
Other uses
Total Uses

Q1

Q2

Q3

Q4

$741.61
60.50

$887.49
62.50

$849.76
62.13

$843.46
63.88

10.00
5.00
5.00
0.00
100.00
0.00
0.00

(10.00)
(10.00)
5.00
0.00
0.00
0.00
0.00

(10.00)
(5.00)
(10.00)
0.00
0.00
7.50
0.00

10.00
10.00
5.00
0.00
5.00
0.00
0.00

0.00
$922.11

0.00
$934.99

0.00
$894.38

0.00
$937.33

Q3

Q4

0.00
(5.00)
(5.00)
0.00
0.00
($10.00)

Q2
(100.00)
(5.00)
(40.00)
0.00
0.00
($145.00)

Net Change in Cash

$912.11

Cumulative Cash
Opening Balance
Closing Balance

Summary Trend Data for Chart

Quarterly revenue
Quarterly margin
Quarterly net income (loss)
Quarterly cash flow
Quarterly total assets

Q1

NOTES

(5.00)
(5.00)
0.00
0.00
0.00
($10.00)

0.00
(5.00)
(35.00)
0.00
0.00
($40.00)

$789.99

$884.38

$897.33

$912.11

$1,702.09

$2,586.47

$3,483.81

$50.00
$962.11

$962.11
$1,752.09

$1,752.09
$2,636.47

$2,636.47
$3,533.81

Q1
$4,510.00
3,910.00
741.61
912.11
$2,336.61

Q2
$5,010.00
4,260.00
887.49
789.99
$3,124.09

Q3
$5,210.00
4,310.00
849.76
884.38
$3,953.85

Q4
$5,510.00
4,410.00
843.46
897.33
$4,802.31

NOTES

Quarterly Trend for Key Financial Metrics

All amounts are in

thousands.

6,000.00

5,000.00

4,000.00

3,000.00

2,000.00

1,000.00

0.00
Q1
Quarterly revenue
Quarterly cash flow

Q2
Quarterly margin
Quarterly total assets

Q3
Quarterly net income (loss)

Q4