Sales budget

year in units in dollars

Estimated sales 2,007 475,000.00 4,750,000.00
2,008 500,000.00 5,000,000.00
2,009 500,000.00 5,000,000.00

sales pattern
jan 1%
feb 5%
mar 1%
apr 10%
may 1%
jun 1%
jul 2%
aug 2%
sept 2%
oct 15%
nov 20%
dec 40%
100%

Ending Inventory for the year 2007

25% of Jan, 2008 sales 2008 sales % sale of the month Desired Inventory
500,000.00 1% 5,000.00

September to december Additional cost

20,000.00 per month payable at the beg. Of the month

Materials requirement
SAA 5kg/unit 0.45 per kg
Maintains 40% of following month's production

A/P payment schedule

Month of purchase 20%
Next month 45%
3rd month 35%
100%

A/P balance
Jan 2008 balance
Purchases Nov-07 223,875.00 78,356.25 to be paid in Jan 2008
Dec-07 162,563.00 130,050.40
Jan 1 2008 A/P balance 208,406.65
Production cost
DL is paid at per unit basis
average at 9.00 per hour payable when inccured

each unit spend 18 mins. In production

0.30 hours per unit

Variable MOH
Per unit cost
Utilities 0.60
Indirect materials 0.20
Plant Maintenance 0.30
Environmental fee 0.14
Others 0.06
Total 1.30

Fixed MOH

Training and development 43,200.00 paid evenly per month

Property and business taxes 39,000.00 Payable, june 30 2007
Supervisor's salary 149,400.00 paid evenly per month
Amortization on Equipment 178,800.00 straight line amort
insurance 96,000.00 payable September 1
Other 117,600.00
624,000.00 585,000.00

Property and business taxes for the next year Jan - Jun
39,600.00 payable june 30 2008 Fixed Cost 51,950.00

Sellig and Admin cost

Level of SALES Cost
High 750,000.00 1,022,460.00
Low 375,000.00 778,710.00
difference 375,000.00 243,750.00

Variable portion 0.65

Fixed portion 534,960.00 44,580.00

y = 534960 + 0.65x

not included the bad debt expense

Sales collection
Cash basis 100%

Credit basis Month of sale 55.0%

2nd month 35.0%
3rd month 9.5%
Bad debts 0.5%
100.0%

a/r balance
sales Collectible
Sales nov 2007 700,000.00 66,500.00 9.5% remaining
Sales dec 2007 1,500,000.00 667,500.00 44.5% remaining
2,200,000.00 734,000.00

income tax payments

During 2008 5,000.00 monthly tax payments
25% of net income shall be payable next year

Apr-08 21,500.00 outstanding tax from 2007

60,000.00
81,500.00
326,000.00 Net income before tax 2007 (assumption)

Purchase of equipment, 2008

Equipment cost 204,300.00

Paid in november 81,720.00
Paid in december 122,580.00

Cost of inventory
RM/ unit 2.2500
DL/unit 2.7000
MOH/unit 2.5480
Cost/unit 7.4980

2007 1,250.00 7.30 9,125.00

2008 1,250.00 7.50 9,372.50
esired Inventory

o be paid in Jan 2008

 43,200.00
19,800.00 19,200.00 149,400.00
3,200.00 117,600.00
310,200.00 Cash expenses
25,850.00 monthly cash expenses

48,750.00 3,300.00
39,600.00
Jul to Dec 19,800.00 Ending balance for balance sheet
52,050.00
 Sales b

Jan Feb Mar

Sale in units 5,000.00 25,000.00 5,000.00
Selling Price 10.00 10.00 10.00
Sales in dollars $ 50,000.00 $ 250,000.00 $ 50,000.00

Productio

Jan Feb Mar

Sales in units 5,000.00 25,000.00 5,000.00
Desired Inventory, End 6,250.00 1,250.00 12,500.00
Total 11,250.00 26,250.00 17,500.00
Expected Inventory, Beg (1,250.00) (6,250.00) (1,250.00)
Required Production in units 10,000.00 20,000.00 16,250.00

Raw materials P

Jan Feb Mar

Required Raw Materials 50,000.00 100,000.00 81,250.00
Desired Inventory, End 40,000.00 32,500.00 77,500.00
Total 90,000.00 132,500.00 158,750.00
Expected Inventory, Beg (20,000.00) (40,000.00) (32,500.00)
Required Purchases in units 70,000.00 92,500.00 126,250.00
Purchase Price 0.45 0.45 0.45
Required Purchases in Dollars $ 31,500.00 $ 41,625.00 $ 56,812.50

Direct Lab

Jan Feb Mar

Required Production in units 10,000.00 20,000.00 16,250.00
Direct Labor hours per unit 0.30 0.30 0.30
Required Direct Labor Hours 3,000.00 6,000.00 4,875.00
Cost per Direct Labor Hour 9.00 9.00 9.00
Cost of Direct Labor 27,000.00 54,000.00 43,875.00

Manufacturing O

Jan Feb Mar

Required Production in units 10,000.00 20,000.00 16,250.00
Variable Manufacturing Overhead Rate 1.30 1.30 1.30
Total Variable Manufacturing Overhead 13,000.00 26,000.00 21,125.00
Fixed Cost 51,950.00 51,950.00 51,950.00
Total Manufacturing Overhead 64,950.00 77,950.00 73,075.00

Selling and Admi

Jan Feb Mar

Sale in units 5,000.00 25,000.00 5,000.00
Variable S & A rate 0.65 0.65 0.65
Variable S & A Expense 3,250.00 16,250.00 3,250.00
Fixed S & A Expense 44,580.00 44,580.00 44,580.00
Rent for storage facility
Bad Debts Expense 250.00 1,250.00 250.00
Total Selling and Administrative Expense 48,080.00 62,080.00 48,080.00

Cash Collec

Jan Feb Mar

Sales in dollars 50,000.00 250,000.00 50,000.00
Collection For this month 27,500.00 137,500.00 27,500.00
Collection For Last month 525,000.00 17,500.00 87,500.00
Collection For 2 months ago 66,500.00 142,500.00 4,750.00
Total collection for the month 619,000.00 297,500.00 119,750.00

Cash Payment

Jan Feb Mar

Required Purchases in Dollars 31,500.00 41,625.00 56,812.50
Payment for this month 6,300.00 8,325.00 11,362.50
Payment for last month 73,153.58 14,175.00 18,731.25
Payment for 2 months ago 78,356.25 56,897.23 11,025.00
Total Payment for the month 157,809.83 79,397.23 41,118.75

Cash B

Jan Feb Mar

Cash,Beginning Balance] 83,365.00 425,875.18 472,297.95
Collections from customers 619,000.00 297,500.00 119,750.00
Payments to workers' wages (27,000.00) (54,000.00) (43,875.00)
Payments to suppliers (157,809.83) (79,397.23) (41,118.75)
Cash Expenses, Manufacturing Overhead (38,850.00) (51,850.00) (46,975.00)
Property and business taxes
Insurance
Selling and Admin Expenses (47,830.00) (60,830.00) (47,830.00)
Monthly Tax Payments (5,000.00) (5,000.00) (5,000.00)
Total cash Provided (used) from Operating Activities 342,510.18 46,422.78 (65,048.75)
Total 425,875.18 472,297.95 407,249.20
Payments to Equipment Puchased -
Total cash Provided (used) from Investing Activities -
Total 425,875.18 472,297.95 407,249.20
Dividends declared (50,000.00)
Borrowings
Repayment of principal and interest
Total cash Provided (used) from Financing Activities - - (50,000.00)
Cash,Ending Balance 425,875.18 472,297.95 357,249.20
 Sales budget

Apr May Jun Jul Aug Sep Oct

50,000.00 5,000.00 5,000.00 10,000.00 10,000.00 10,000.00 75,000.00
10.00 10.00 10.00 10.00 10.00 10.00 10.00
$ 500,000.00 $ 50,000.00 $ 50,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 750,000.00

Production Budget

Apr May Jun Jul Aug Sep Oct

50,000.00 5,000.00 5,000.00 10,000.00 10,000.00 10,000.00 75,000.00
1,250.00 1,250.00 2,500.00 2,500.00 2,500.00 18,750.00 25,000.00
51,250.00 6,250.00 7,500.00 12,500.00 12,500.00 28,750.00 100,000.00
(12,500.00) (1,250.00) (1,250.00) (2,500.00) (2,500.00) (2,500.00) (18,750.00)
38,750.00 5,000.00 6,250.00 10,000.00 10,000.00 26,250.00 81,250.00

Raw materials Purchase Budget

Apr May Jun Jul Aug Sep Oct

193,750.00 25,000.00 31,250.00 50,000.00 50,000.00 131,250.00 406,250.00
10,000.00 12,500.00 20,000.00 20,000.00 52,500.00 162,500.00 250,000.00
203,750.00 37,500.00 51,250.00 70,000.00 102,500.00 293,750.00 656,250.00
(77,500.00) (10,000.00) (12,500.00) (20,000.00) (20,000.00) (52,500.00) (162,500.00)
126,250.00 27,500.00 38,750.00 50,000.00 82,500.00 241,250.00 493,750.00
0.45 0.45 0.45 0.45 0.45 0.45 0.45
$ 56,812.50 $ 12,375.00 $ 17,437.50 $ 22,500.00 $ 37,125.00 $ 108,562.50 $ 222,187.50

Direct Labor Budget

Apr May Jun Jul Aug Sep Oct

38,750.00 5,000.00 6,250.00 10,000.00 10,000.00 26,250.00 81,250.00
0.30 0.30 0.30 0.30 0.30 0.30 0.30
11,625.00 1,500.00 1,875.00 3,000.00 3,000.00 7,875.00 24,375.00
9.00 9.00 9.00 9.00 9.00 9.00 9.00
104,625.00 13,500.00 16,875.00 27,000.00 27,000.00 70,875.00 219,375.00

Manufacturing Overhead Budget

Apr May Jun Jul Aug Sep Oct

 38,750.00 5,000.00 6,250.00 10,000.00 10,000.00 26,250.00 81,250.00
1.30 1.30 1.30 1.30 1.30 1.30 1.30
50,375.00 6,500.00 8,125.00 13,000.00 13,000.00 34,125.00 105,625.00
51,950.00 51,950.00 51,950.00 52,050.00 52,050.00 52,050.00 52,050.00
102,325.00 58,450.00 60,075.00 65,050.00 65,050.00 86,175.00 157,675.00

Selling and Administrative Budget

Apr May Jun Jul Aug Sep Oct

50,000.00 5,000.00 5,000.00 10,000.00 10,000.00 10,000.00 75,000.00
0.65 0.65 0.65 0.65 0.65 0.65 0.65
32,500.00 3,250.00 3,250.00 6,500.00 6,500.00 6,500.00 48,750.00
44,580.00 44,580.00 44,580.00 44,580.00 44,580.00 44,580.00 44,580.00
20,000.00 20,000.00
2,500.00 250.00 250.00 500.00 500.00 500.00 3,750.00
79,580.00 48,080.00 48,080.00 51,580.00 51,580.00 71,580.00 117,080.00

Cash Collection Budget

Apr May Jun Jul Aug Sep Oct

500,000.00 50,000.00 50,000.00 100,000.00 100,000.00 100,000.00 750,000.00
275,000.00 27,500.00 27,500.00 55,000.00 55,000.00 55,000.00 412,500.00
17,500.00 175,000.00 17,500.00 17,500.00 35,000.00 35,000.00 35,000.00
23,750.00 4,750.00 47,500.00 4,750.00 4,750.00 9,500.00 9,500.00
316,250.00 207,250.00 92,500.00 77,250.00 94,750.00 99,500.00 457,000.00

Cash Payment (to suppliers)

Apr May Jun Jul Aug Sep Oct

56,812.50 12,375.00 17,437.50 22,500.00 37,125.00 108,562.50 222,187.50
11,362.50 2,475.00 3,487.50 4,500.00 7,425.00 21,712.50 44,437.50
25,565.63 25,565.63 5,568.75 7,846.88 10,125.00 16,706.25 48,853.13
14,568.75 19,884.38 19,884.38 4,331.25 6,103.13 7,875.00 12,993.75
51,496.88 47,925.00 28,940.63 16,678.13 23,653.13 46,293.75 106,284.38

Cash Budget

Apr May Jun Jul Aug Sep Oct

357,249.20 357,572.33 418,217.33 288,496.70 227,138.58 176,305.45 20,856.70
316,250.00 207,250.00 92,500.00 77,250.00 94,750.00 99,500.00 457,000.00
(104,625.00) (13,500.00) (16,875.00) (27,000.00) (27,000.00) (70,875.00) (219,375.00)
(51,496.88) (47,925.00) (28,940.63) (16,678.13) (23,653.13) (46,293.75) (106,284.38)
(76,225.00) (32,350.00) (33,975.00) (38,850.00) (38,850.00) (59,975.00) (131,475.00)
(39,600.00)
(96,000.00)
(77,080.00) (47,830.00) (47,830.00) (51,080.00) (51,080.00) (71,080.00) (113,330.00)
(6,500.00) (5,000.00) (5,000.00) (5,000.00) (5,000.00) (5,000.00) (5,000.00)
323.13 60,645.00 (79,720.63) (61,358.13) (50,833.13) (249,723.75) (118,464.38)
357,572.33 418,217.33 338,496.70 227,138.58 176,305.45 (73,418.30) (97,607.68)

357,572.33 418,217.33 338,496.70 227,138.58 176,305.45 (73,418.30) (97,607.68)

(50,000.00) (50,000.00)
145,000.00 120,000.00
(725.00) (1,325.00)
- - (50,000.00) - - 94,275.00 118,675.00
357,572.33 418,217.33 288,496.70 227,138.58 176,305.45 20,856.70 21,067.33
Nov Dec Total
100,000.00 200,000.00 500,000.00
10.00 10.00
$ 1,000,000.00 $ 2,000,000.00 $ 5,000,000.00

Nov Dec Total

100,000.00 200,000.00
50,000.00 1,250.00
150,000.00 201,250.00
(25,000.00) (50,000.00)
125,000.00 151,250.00 500,000.00

Nov Dec Total

625,000.00 756,250.00
302,500.00 20,000.00
927,500.00 776,250.00
(250,000.00) (302,500.00)
677,500.00 473,750.00
0.45 0.45
$ 304,875.00 $ 213,187.50 $ 1,125,000.00

Nov Dec Total

125,000.00 151,250.00 500,000.00
0.30 0.30 0.30
37,500.00 45,375.00 150,000.00
9.00 9.00 9.00
337,500.00 408,375.00 1,350,000.00

Nov Dec Total

 125,000.00 151,250.00 500,000.00
1.30 1.30 1.30
162,500.00 196,625.00 650,000.00
52,050.00 52,050.00 624,000.00
214,550.00 248,675.00 1,274,000.00

Nov Dec Total

100,000.00 200,000.00 500,000.00
0.65 0.65 0.65
65,000.00 130,000.00 325,000.00
44,580.00 44,580.00 534,960.00
20,000.00 20,000.00 80,000.00
5,000.00 10,000.00 25,000.00
134,580.00 204,580.00 964,960.00

Nov Dec Total

1,000,000.00 2,000,000.00
550,000.00 1,100,000.00 2,750,000.00
262,500.00 350,000.00 1,575,000.00
9,500.00 71,250.00 399,000.00
822,000.00 1,521,250.00 4,724,000.00

Nov Dec Total

304,875.00 213,187.50
60,975.00 42,637.50 225,000.00
99,984.38 137,193.75 483,469.20
37,996.88 77,765.63 347,681.60
198,956.25 257,596.88 1,056,150.80

Nov Dec Consolidated

21,067.33 21,031.08 83,365.00
822,000.00 1,521,250.00 4,724,000.00
(337,500.00) (408,375.00) (1,350,000.00)
(198,956.25) (257,596.88) (1,056,150.80)
(188,350.00) (222,475.00) (960,200.00)
(39,600.00)
(96,000.00)
(129,580.00) (194,580.00) (939,960.00)
(5,000.00) (5,000.00) (61,500.00)
(37,386.25) 433,223.13 220,589.20
(16,318.93) 454,254.20 303,954.20
(81,720.00) (122,580.00) (204,300.00)
(81,720.00) (122,580.00) (204,300.00)
(98,038.93) 331,674.20 99,654.20
(50,000.00) (200,000.00)
121,000.00 386,000.00
(1,930.00) (260,930.00) (264,910.00)
119,070.00 (310,930.00) (78,910.00)
21,031.08 20,744.20 20,744.20
Sales 5,000,000.00
Cost of Goods Sold
Raw Materials Inventory, Beg 9,000.00
Raw Materials Purchased 1,125,000.00
Raw Materials Inventory, End (9,000.00)
Raw Materials Used 1,125,000.00
Direct Labor 1,350,000.00
Manufacturing Overhead 1,274,000.00
Total Manufacturing Cost 3,749,000.00
Work In Process Inventory,Beg -
Work In Process Inventory,End -
Cost of Goods Manufactured 3,749,000.00
Finished Goods Inventory, Beg 9,125.00
Finished Goods Inventory, End (9,372.50) (3,748,752.50)
Gross Income 1,251,247.50
Selling and Administrative Expense (964,960.00)
Interest Expense (5,910.00)
Net income before tax 280,377.50
Income tax (70,094.38)
Net Income After Tax 210,283.13
Assets

Cash 20,744.20
Accounts Receivable 985,000.00
Inventory-Raw materials 9,000.00
Inventory-Finished goods 9,372.50
Prepaid insurance 64,000.00
Prepaid Property and Business Taxes 19,800.00
Capital Assets (net) 749,500.00
Total Assets 1,857,416.70

Liabilities and Equity

Accounts Payable 277,256.20

Loans Payable 127,000.00
Income Taxes Payable 30,094.38
Capital Stock 1,000,000.00
Retained Earnings 423,066.13
Total Liabilities and Equity 1,857,416.70
 Cash Accounts Rece
Beg 83,365.00 Beg
Collections 4,724,000.00 1,056,150.80 Payments to supplier Sales
Loan 386,000.00 1,350,000.00 payments to workers
960,200.00 Overhead payments
39,600.00 B. Tax payments
61,500.00 I. tax payments End
96,000.00 Insurance payment
939,960.00 Selling and admin exp
204,300.00 Purchase of equipment
264,910.00 Loan payments
200,000.00 Dividend payment
5,193,365.00 5,172,620.80
End 20,744.20

Raw materials Inventory Finished goods i

Beg 9,000.00 Beg
Purchased 1,125,000.00 1,125,000.00 Used in production Produced
1,134,000.00 1,125,000.00
End 9,000.00 End

Capital Assets Accounts pa

Beg 724,000.00 Beg
Purchase 204,300.00 178,800.00 Depreciation Purchases
928,300.00 178,800.00
End 749,500.00 End

Income Taxes Payable Retained earnings

Beg 21,500.00 Beg 412,783.00
Tax 70,094.38 61,500.00 Net income 210,283.13
91,594.38 61,500.00 623,066.13
End 30,094.38 423,066.13
 Accounts Receivable
734,000.00
5,000,000.00 4,724,000.00 Collections
25,000.00 Bad debts

5,734,000.00 4,749,000.00
985,000.00

Finished goods inventory

9,125.00
3,749,000.00 3,748,752.50 COGS
3,758,125.00 3,748,752.50
9,372.50

Accounts payable
208,407.00
1,125,000.00 1,056,150.80 Payments
1,333,407.00 1,056,150.80
277,256.20

Retained earnings

200,000.00 Dividends
200,000.00