Advice whether the client can comfortably achieve break-even level of sales based on the firms recent performance and its budgeted level of sales??
PART 6 (A) - BUDGETING 1. INVENTORY BUDGET 2023 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Sales 2380 1428 1420 1428 1420 1420 1428 2380 2380 Cost of Goods Sold 1428 1428 1428 856.8 856.8 856.8 056. 8 856.8 856.8 1428 1428 1428 pening Inventory 200 200 200 160 180 780 200 200 200 - Cost of Goods Sold -1428 -1428 -1428 -856.8 -856.8 -856.8 -856.8 -856.8 -856.8 -1428 -1428 -1428 Purchases 1428 1428 1408 856.8 856.8 856.8 856.8 856.8 876.8 1428 1428 1428 Closing Inventory 200 200 180 180 180 180 180 180 200 200 200 200 2. CASH BUDGET 2022 Oct Nov Dec Sales 2380 2380 2380 Purchases 1428 1428 34 1 $000 2023 10% 40% 50% Jan Feb Mar Apr May Jun Jul Aug Sep Nov Dec Sales 2380 2380 2380 1428 1428 1428 1428 1428 1428 2380 2380 2380 Purchases 1428 1428 1406 856.8 856.8 856.8 856.8 856.8 876.8 1428 1428 1428 Cash Received From Customers: sales from 3 months ago 238 238 238 238 238 238 142.8 142.8 142.8 142.8 142.8 142.8 sales from 2 months ago 352 957 352 957 952 571.2 571.2 571.2 571.2 571.2 571.2 952 sales from last month 1130 1190 1190 1190 714 714 714 714 714 714 1130 1790 Total Cash Received From Custom 2380 2380 2380 2380 1904 |1523.2 1428 1428 1428 1428 1904 2284.8 FALSE Payments To Suppliers: purchases from 2 months ago 714 714 714 704 428.4 428.4 428.4 428.4 428.4 438.4 purchases from last month 714 714 714 704 128.4 428.4 428.4 428.4 428.4 438.4 714 714 Total Payments to Suppliers 1428 1428 1428 1418 1132.4 856.8 856.8 856.8 856.8 866.8 1152.4 1428 Cash Received From Customers 2380 2380 2380 2380 1904 1523.4 1428 1428 1428 1428 1904 2284.6 Payments to Suppliers -1428 -1428 -1428 -1418 -1132.4 -856.8 -856.8 -856.8 -856.8 -866.8 -1152.4 -1428 - Wages -300 -300 -300 -240 -240 -240 -240 -240 -240 -300 -300 -300 - Operating Expenses -410 -410 -410 -410 -410 -410 -410 -410 -410 -410 -410 -410 Total Cash Paid 2138 2138 2138 2068 782 1506.8 1506.8 1506.8 1506.8 1576.8 1862.4 2138 Net Change in Cash 242 242 242 312 122 16.2 -78.8 -78.8 -78.8 148.8 41.6 146.8 Opening Cash 30 352 574 816 1128 1250 1266.2 1187.4 1108.6 1023.6 1178.6 1120.2 Net Change in Cash 242 242 242 312 122 16.2 -78.8 -78.8 -78.8 148.4 41.6 146.8 Closing Cash 332 574 816 1128 1 1266.2 1187.4 1108.6 1029.8 1178.6 1120.2 1367 3. ACCOUNTS RECEIVABLE BUDGET Enter Student Part Inst ions Part 6 (A) Part 6 (B)_purchases from last month 714 714 714 704 428.4 428.4 428.4 428.4 428.4 438.4 714 714 Total Payments to Suppliers 1428 1428 1420 1418 1132.4 856.6 856.8 856.8 856.8 866.8 1752.4 1420 Cash Received From Customers 2380 2380 2380 2360 1904 1523.4 1428 1428 1428 1428 2284.8 - Payments to Suppliers -1428 -1428 -1428 -1418 -1132.4 -856.8 -856.8 -856.8 -856.8 -866.8 -1152.4 -1428 - Wages -300 -300 -300 -240 -240 -240 -240 -240 -240 -300 -300 -300 - Operating Expenses -410 -410 -410 -410 -410 -410 -410 -410 -410 -410 -410 -410 Total Cash Paid 2138 2138 2138 2068 1782 1506.8 1506.8 1506.8 1506.8 1576.8 1862.4 2138 Net Change in Cash 242 242 242 312 122 16.2 -78.8 -78.8 -78.8 148.8 41.6 146.0 Opening Cash 90 332 574 816 1128 1250 1266.2 1187.4 1108.6 1029.8 1178.6 1120.2 Net Change in Cash 242 242 242 312 122 6.2 -78.8 -78.8 -78.8 148.4 41.6 146.8 Closing Cash 332 574 816 1128 1250 1266.2 1187.4 1108.6 1029.8 1178.6 1120.2 1367 3. ACCOUNTS RECEIVABLE BUDGET 2023 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Opening Accounts Receivable 3808 3808 3808 3808 2856 2380 2284.8 2284.8 2284.6 | 2284.8 |3236.6 3712.8 + Credit Sales 2380 2380 2380 1428 1428 1428 1428 1428 1428 2380 2380 2380 - Payments Received -2380 -2380 -2380 -2380 -1904 -1523.2 -1428 -1428 -1428 -1428 -1904 -2284.8 = Closing Accounts Receivable 3808 3808 3808 2856 2380 2284.8 2284.8 2284.8 2284.8 3236.8 3712.8 1428 4. ACCOUNTS PAYABLE BUDGET 2023 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Opening Accounts Payable 2142 2142 2142 2122 1560.8 1258.2 1258.2 1258.2 1258.2 1305.2 1866.4 2142 + Credit Purchases 1428 1428 1408 856.8 856.8 856.8 856.8 856.8 876.8 1428 1428 1428 - Payments Made -1428 -1428 -1428 -1418 -1132.4 -856.8 -856.8 -856.8 -856.8 -866.8 -1152.4 -1428 = Closing Accounts Payable 2142 2142 2122 1560.8 1285.2 1258.2 1258.2 1258.2 1305.2 1866.4 2142 2142 5. Briefly analyse these budgets. Highlight any areas of concern and give advice to your client.6. BREAK-EVEN ANALYSIS (Enter actual dollars in this part, not thousands.) What is the variable component of the wages cost? 2.14 per unit What is the fixed component of the wages cost? 150,200 What is the total value of all fixed costs for this firm? un 560,200 What is the variable cost of raw materials? 20.40 per unit What is the total value of all variable costs for this firm? 22.54 per unit What is the firm's break-even point? 48,883 units 7. Advise whether the client can comfortably achieve the break-even level of sales based on the firm's recent performance and its budgeted level of sales
