Cash Budget & Pro-forma Statements Case

Case: Utensil Box Inc.

Due Date: Friday December 11,2020

This assignment is worth (10 %)of your course grade.

Required:

1.

Produce projected income statements, balance sheets, and cash budgets for

Utensil Box Inc. up to July 31, 2020 for all three production scenarios 5,000,

10,000 and 30,000 units.

2.

Based on your analysis of the information provided in the case, what concerns do

you have with their business plan? What changes would you suggest?

(400 - 500 words)

3.

If you were Mr. Reid, would you invest in Utensil Box Inc. at July 31

st

2019? If

yes, how much considering the parameters provided? Why or why not?

(400 - 500 words)

UTENSIL BOX BALANCE SHEET As of July 15, 2017 Assets Current Total Current Assets Equipment Single Cavity Mold Tools and Dies Blister Package Mold Office Equipment 23,300 4,200 4,430 865 32,795 Other Patent Total Assets 13,800 $ 46,595 12,200 Liabilities Current Accounts Payable Equity Common Stock Total liabilities and Equity 34,395 $ 46,595 Exhibit 3 JACOBS Personal Balance Sheet As of July 15, 2017 $ 345 69,000 12,075 Assets Cash Real Estate Automobile Stocks, Bonds, Etc. Household & Personal Effects Invested in Chefs Toolkit Total Assets 43,125 34,395 $ 158,940 Liabilities Bank & Finance Co. Loans Mortgages Other Liabilities 20,700 51,750 6,775 79,225 79,715 $ 158,940 Net Worth Total liabilities and Net Worth Month Exhibit 4 Production schedule in Units - 10,000 per month Production Sales Promotion Molded Packaged Inver ntory Warehouse Home 40,000 40,000 500 500 500 500 19,500 9,000 3,500 August September October November December Janauary February March April May June July 5,000 7,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5,000 7,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 UTENSIL BOX BALANCE SHEET As of July 15, 2017 Assets Current Total Current Assets Equipment Single Cavity Mold Tools and Dies Blister Package Mold Office Equipment 23,300 4,200 4,430 865 32,795 Other Patent Total Assets 13,800 $ 46,595 12,200 Liabilities Current Accounts Payable Equity Common Stock Total liabilities and Equity 34,395 $ 46,595 Exhibit 3 JACOBS Personal Balance Sheet As of July 15, 2017 $ 345 69,000 12,075 Assets Cash Real Estate Automobile Stocks, Bonds, Etc. Household & Personal Effects Invested in Chefs Toolkit Total Assets 43,125 34,395 $ 158,940 Liabilities Bank & Finance Co. Loans Mortgages Other Liabilities 20,700 51,750 6,775 79,225 79,715 $ 158,940 Net Worth Total liabilities and Net Worth Month Exhibit 4 Production schedule in Units - 10,000 per month Production Sales Promotion Molded Packaged Inver ntory Warehouse Home 40,000 40,000 500 500 500 500 19,500 9,000 3,500 August September October November December Janauary February March April May June July 5,000 7,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5,000 7,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000