Before a quarter starts, a trading business drafts three budgeted financial statements: an Income Statement for expected profit, a Cash Flow Statement for expected cash in and out, and a Balance Sheet for where it expects to stand at the end. Raise the share of sales made on credit, then add one extra plan, and watch which figures move in each report.
Raise credit sales. Add one extra plan. Follow the two linked figures.
Example surf shop, budget for the coming quarter. All figures are budgeted, in dollars, with GST left out. Brackets mean money going out.
A budgeted Income Statement counts revenue when it is earned, a budgeted Cash Flow Statement counts cash when it moves, and the budgeted Balance Sheet holds the difference.