In this paper we show how the manager of the “XYZ” company try to find out how to control the incomes, expenses, output and every movement of the factory. In theother hand, we will analyze how much cost the labor, the direct material and other things like equipment, taxes, indirect costs. Is important to say that these cost come from theproduction of two products the AR5 and V-3m, the former are made by standard processes and the first one is a special deliver.
The goal is to make the balance sheet and theincome statement projected to December of 2006 in order to prevent all the possible changes that could appear along the period. For this, we will make six budgets, sales budget,income budget, which depends directly form the former, in third place we have the labor budget that contents two parts first of all the buy of the labor, then we will see the payrollbudget. The next is the material budget that has the same parts of the last one. The last step for making the cash flow is the indirect costs budget that is made for themanagement, indirect, taxes and equipment expenses. Finally, before doing the statement and the balance we have the cash budget (cash flow) which is the sum of the other budget in only onesquare.
We must say that it will be presented four alternatives to solve the financial problems that have the enterprise, for example in the balance the assets are bigger thanthe liabilities and capital, for this reason is mandatory to give solutions such increase the short term credits which or try to recover some part of the receivable accounts inorther to make a decrease in the asset. The first part of this paper is an increase of the 7,25% in every point including the balance and income statement of the last period.