Professional Documents
Culture Documents
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
900
975
950
1,000
1,167
1,155
1,171
175
188
201
196
232
238
245
90
102
95
107
118
117
123
$499,500 $547,800 $541,900 $569,000 $654,600 $655,800 $676,100
1,176
247
120
$673,500
$425,368
$248,132
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$17,968
$20,672
$20,709
$21,351
$21,268
$6,289
$7,235
$7,248
$7,473
$7,444
June
Unit production
and sales
- Chairs
- Tables
- Cabinets
- Total revenuea
- Cash sales:
(25%+35%)/
95% of revenue
- Credit card
sales: 35%/95%
of rev.
- Exporter sales:
40% of rev. in
2003; all cash
in 2004
- Bad debts: 3%
of export sales
- Cash sales
discounts: 5%
of cash sales
- Cred. card fees:
3% of credit
card sales
July
Aug.
Sept.
Oct.
Nov.
Dec.
Total
1,180
1,170
1,175
1,198
1,195
1,183
1,168
250
237
248
238
243
239
250
123
121
119
124
123
123
117
$682,400 $665,100 $672,400 $677,000 $679,100 $673,100 $669,200 $7,947,300
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$21,549
$21,003
$21,234
$21,379
$21,445 $21,256
$21,133
$250,967
$7,542
$7,351
$7,432
$7,483
$7,396
$87,839
$7,506
a Chair price is $200, table price is $900, and cabinet price is $1,800.
$7,440
Dec.
July
Aug. Sept. Oct. Nov. Dec.
1,786.5 1,8041,818.21,823.51,808.7 1,794.2
11
11
11
11
11
11
14
14
17
17
1,892
0
77.4
17
15
94.6
2,924
0
17
86
17
94.6
17
86
15
17
94.6
17
17
94.6
94.6
94.6
94.6
94.6
b Carpenter hours for chairs, tables, and cabinets are 0.4, 2.5, and 6, respectively.
c Add new carpenters if projected monthly overtime exceeds 5% of total regular carpenter hours
available.
Cash inflows
- From 3 months previous:
17% of export sales
- From 2 months previous:
50% of export sales
- From 1 month previous: 30% of
export sales + 97% of credit
card sales
- From current month:
95% of cash sales
- Interest on cash balance: 3%/yr if
previous mo. Ending bal. .> $50,000
- Total cash inflows
Jan.
Feb.
Mar.
Apr.
May
June
$0
$0
$0
240,688
409,440
109,560 108,380
1
68
1,03
90
1,160
0
51
9
2
0
$733,929 $741,884 $664,952 $641,054 $646,616 $651,287
Cash inflows
July
Aug.
Sept.
Oct.
Nov.
Dec.
- From 3 months previous:
17% of export sales
$0
$0
$0
$0
$0
$0
- From 2 months previous:
50% of export sales
0
0
0
0
0
0
- From 1 month previous: 30% of
export sales + 97% of credit
card sales
243,868 237,686 240,295 241,938 242,689 240,545
- From current month:
95% of cash sales
399,060 403,440 406,200 407,460 403,860 401,520
- Interest on cash balance: 3%/yr if
previous mo. Ending bal. .> $50,000
1,421
1,173
1,424
1,684
1,575
1,840
- Total cash inflows
$644,349 $642,299 $647,918 $651,083 $648,124 $643,904
Cash outflows
Jan.
Feb.
Mar.
Apr.
May
June
- Carpenter wages:
$24 per regular hr.;
$36 per overtime hr.
$37,152 $42,533 $42,684 $45,408 $45,408 $45,408
- Helper wages:
$14 per regular hr.;
$21 per overtime hr.
33,712 37,216 37,349 40,936 40,936
40,936
- Supplies, etc.:
$5 per carpenter hr.
7,660
8,774
8,795
9,095
9,040
9,175
- Flexible support costs:
$20 per carpenter hr.
30,640 35,096 35,180 36,378 36,158
36,700
- Maintenance costs:
$15 per carpenter hr.
22,980 26,322 26,385 27,284 27,119
27,525
- Wood costs:
$30 per unit of woodd 125,190 143,790 144,420 149,280 148,560 150,750
- Factory rent:
$150,000 per quarter
150,000
0
0 150,000
0
0
- Capacity-related costs:
$40,000 per month
40,000 40,000 40,000 40,000 40,000
40,000
- Administrative
salaries:
$25,000 per month
25,000 25,000 25,000 25,000 25,000
25,000
- Selling costs:
$30,000 per month
30,000 30,000 30,000 30,000 30,000
30,000
- Advertising
expenditures:
$50,000 per mo.
50,000 50,000 50,000 50,000 50,000
50,000
e
42,185 48,515 48,590 50,095 49,895
50,555
- Shipping costs
- Flex. selling costs: 6%
of product list prices
34,140 39,276 39,348 40,566 40,410
40,944
- Interest on line of
credit: 10%/yr based
on last months balance
0
0
0
0
0
0
- Mach. purch.: $5,000
no. of carpenters (Jan.
45,000
0
0
0
0
0
and July)
- Total cash outflows
$673,659 $526,522 $527,751 $694,041 $542,525 $546,993
Cash outflows
July
Aug.
Sept.
Oct.
Nov.
Dec.
- Carpenter wages:
$24 per regular hr.;
$36 per overtime hr.
$45,408 $45,408 $45,408 $45,408 $45,408 $45,408
- Helper wages:
$14 per regular hr.;
$21 per overtime hr.
40,936 40,936 40,936 40,936 40,936 40,936
- Supplies, etc.:
$5 per carpenter hr.
8,933
9,020
9,091
9,118
9,044
8,971
- Flexible support costs:
$20 per carpenter hr.
35,730 36,080 36,364 36,470 36,174 35,884
- Maintenance costs:
$15 per carpenter hr.
26,798 27,060 27,273 27,353 27,131 26,913
- Wood costs:
$30 per unit of woodd 146,430 148,320 148,860 149,520 148,200 147,690
- Factory rent:
$150,000 per quarter
150,000
0
0 150,000
0
0
- Capacity-related costs:
$40,000 per month
40,000 40,000 40,000 40,000 40,000 40,000
- Administrative
salaries:
$25,000 per month
25,000 25,000 25,000 25,000 25,000 25,000
- Selling costs:
$30,000 per month
30,000 30,000 30,000 30,000 30,000 30,000
- Advertising
expenditures:
$50,000 per mo.
50,000 50,000 50,000 50,000 50,000 50,000
e
49,290 49,810 50,180 50,325 49,885 49,565
- Shipping costs
- Flex. selling costs: 6%
of product list prices
39,906 40,344 40,620 40,746 40,386 40,152
- Interest on line of
credit: 10%/yr based on
last months balance
0
0
0
0
0
0
- Mach. purch.: $5,000
no. of carpenters (Jan.
55,000
0
0
0
0
0
and July)
- Total cash outflows
$743,430 $541,978 $543,732 $694,875 $542,163 $540,519
d Units of wood: chairs are $1, tables $8; and cabinets $15
e Packaging and shipping costs: chairs are $15, tables are $65, and cabinets are $135.
Dec.
Jan.
Feb.
Mar.
Apr.
May
$50,000 $110,270 $325,632 $462,833 $409,846
June
$513,938
60,270
215,362
137,201
52,987
104,091
104,294
110,270
325,632
462,833
409,846
513,938
618,232
50,000
110,270
325,632
462,833
409,846
513,938
618,232
Judds Reproductions
Projected Income Statement
for the Year Ended December 31, 2004
Cash Sales to Exporters
Revenue
Chairs
Tables
Cabinets
$2,787,600
2,576,700
2,583,000
531,041
476,701
320,141
426,854
476,838
588,890
106,714
1,751,010
300,000
46,000
600,000
360,000
480,000
600,000
0
250,967
87,839
13,047
Depreciation:
Machinery, Jan. 1, 2004
Purchases: $45,000 in January and $55,000 in July
Depreciation expense: 10% of year-end balance
Machinery, Dec. 31, 2004
$360,000
100,000
(46,000)
$414,000
$7,947,300
4,678,189
$3,269,111
1,786,000
925,759
$557,352
Judds Reproductions
Projected Balance Sheet
December 31, 2004
Cash Sales to Exporters
Cash
Accounts
receivablea
Machinery and
equipmentb
Total assets
$889,211
239,151
Bank
loan
414,000
Owners
equity
$1,542,362
$1,542,362
$1,542,362
$0
$360,000
100,000
(46,000)
$414,000