After completing the budget template, please write a two- to three-page summary including the following:

• Explain the process for creating an operating budget and its importance.
• Describe how revenues and expenses are grouped for planning and control in the financial statements.

Xample Manufacturing Operating Budget (2019)

	Quarter 1	Quarter 2	Quarter 3	Quarter 4	TOTAL (add across)
Revenue
Sony Contract	750,000	750,000	750,000	750.000	30,00,000
Boeing Contract	437,500	437,500	437,500	437,500	1,750,000
Ratheon Contract	45,000	45,000	45,000	45,000	180,000
Other Income	400,000	400,000	400,000	400,000	1,600,000
PROJECTED TOTAL INCOME	1,632,500	1,632,500	1,632,500	1,632,500	6,530,000
	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Costs and Expenses					TOTAL
Salaries	407,500	407,500	407,500	407,500	1,630,000
Benefits	61,250	61,250	61,250	61,250	245,000
Rent	190,000	190,000	190,000	190,000	760,000
Insurance	11,250	11,250	11,250	11,250	45,000
Depreciation	195,000	195,000	195,000	195,000	780,000
Overhead	45,000	45,000	45,000	45,000	180,000
Supplies	24,000	24,000	24,000	24,000	96,000
Raw Materials	650,000	650,000	650,000	650,000	2,600,000
PROJECTED TOTAL EXPENSES	1,584,000	1,584,000	1,584,000	1,584,000	6,336,000
PROJECTED NET PROFIT/(LOSS)	48,500	48,500	48,500	48,500	194,000