In-Puts

Sales 1,000,000 1,200,000 1,500,000

Gross Profit as %age of Sales 60% 60% 60%
%age of CGS Purchased as inv 200% 200% 200%
Cost of Inv Purchased 800,000 960,000 1,200,000
%age of inv purchased on cash 50% 50% 50%

Out-Puts
Cash Budget for each of the 3 months and total for the first quarter
Cash Inflows M1 M2 M3 TOTAL Q1
Investment by owners 7,000,000 0 0 7,000,000
Collection of Sales 1,000,000 1,200,000 1,500,000 3,700,000
Total Inflows (a) 8,000,000 1,200,000 1,500,000 10,700,000

Cash Outflows
Pagri 5,000,000 0 0 5,000,000
paid for inventory Purchases 400,000 480,000 600,000 1,480,000
Business License 6,000 - - 6,000
Organizational Cost 10,000 0 0 10,000
Advance Rent 120,000 0 0 120,000
Fixture & Furniture 600,000 0 0 600,000
Advertising 100,000 50,000 50,000 200,000
Salaries 0 60,000 60,000 120,000
Utilities 0 20,000 20,000 40,000
Corp. Income Tax 121,364 171,923 225,761 519,048

Total Outflows (b) 6,357,364 781,923 955,761 8,095,048

Net Cash Flows (a - b) 1,642,636 418,077 544,240 2,604,952
add beg Cash Balance 0 1,647,850 2,069,669 0
Less Minim Cash Required (j) 200,000 200,000 200,000 200,000
Surplus or Shortage of Cash m) 1,442,636 1,865,927 2,413,908 2,404,952
½ % Interest Income on surplus (n) 5,214 3,742 3,201 12,157
ST bank loan needed & taken
Short term bank loan repaid
Interest paid 1% on bank loan
Short tern bank loan balance
Cash after loan & Interest (k=m+n)) 1,447,850 1,869,669 2,417,109 2,417,109
Ending Cash Balance (J +k) 1,647,850 2,069,669 2,617,109 2,617,109

Projected Income Statements for the first 3 Months, and total first quarter
M1 M2 M3 TOTAL Q1
Sales 1,000,000 1,200,000 1,500,000 3,700,000
CGS 400,000 480,000 600,000 1,480,000
GP 600,000 720,000 900,000 2,220,000
Operating Expenses
Rent 10,000 10,000 10,000 30,000
Salaries 60000 60000 60000 180,000
Advertising 100,000 50,000 50,000 200,000
Utilities 20,000 20,000 20,000 60,000
License amortization 500 500 500 1,500
Depr. Expense fixture 10,000 10,000 10,000 30,000
Amortization of Org. cost 166 166 166 498
Total Op. Expenses 200,666 150,666 150,666 501,998

Operating Profits (EBIT) 399,334 569,334 749,334 1,718,002

Add Interest Income 5,214 3,742 3,201 12,157
Less Interest Expense 0
EBT 404,548 573,076 752,535 1,730,159
Corp Income Tax 30% 121,364 171,923 225,761 519,048
NI 283,184 401,153 526,775 1,211,111
Projected Balance Sheets on the last day of each of the next three months
balance sheet on the last day of month 3 and on the last day of quarter 1 is same.
I hope you understand why?

ASSETS M1 M2 M3 Last day of

Quatrter 1
Cash 1,647,850 2,069,669 2,617,109 2,617,109
Account Receivable 0 0 0 0
Inventory 400,000 880,000 1,480,000 1,480,000
Fixtures 600,000 600,000 600,000 600,000
Less: Accumul depreciation 10,000 20,000 30,000 30,000
Fixture (net) 590,000 580,000 570,000 570,000
Organizational cost 9,834 9,668 9,502 9,502
License fee 5,500 5,000 4,500 4,500
Prepaid Rent 110,000 100,000 90,000 90,000
Pagri 5,000,000 5,000,000 5,000,000 5,000,000
Total Assets 7,763,184 8,644,337 9,771,111 9,771,111

Accounts Payable 400,000 880,000 1,480,000 1,480,000

Salaries Payable 60,000 60,000 60,000 60,000
Utilities Payable 20,000 20,000 20,000 20,000
Advertising Payable 0 0 0 0
Income Tax Payable 0 0 0 0
Total Liabilities 480,000 960,000 1,560,000 1,560,000
Paid -up Share Capital 7,000,000 7,000,000 7,000,000 7,000,000
RE 283,184 684,337 1,211,111 1,211,111
OE 7,283,184 7,684,337 8,211,111 8,211,111
TL & OE 7,763,184 8,644,337 9,771,111 9,771,111

Notes:
1: cash outflow for corp. income tax was taken from income statement
2:End Acc P/Ables in balance sheet was calculated as shown below
Beg Acc P/Able + Purchases - End Acc P/Ables = cash paid for purchases of inventory
3: End Inventory in the balance sheet was calculated as shown below
Beg inventory + Purchases of inventory - End Inventory = CGS
4: End cash balance from cash budget was taken to balance sheet as an asset Cash
5: End RE in balance sheet was calculated as shown below
End RE = Beg RE + NI - cash dividends - stock dividends