Hera Manufacturing Forecast in Units Month Sales MA-12 RSt DSt Jan 13,114 Year 1 Year 2 Year 3 Year 4 Average 14,057 Feb 10,793 January 0.98 0.87 0.95 0.93 10,724 Mar 12,765 Februar 1.05 1.08 0.89 1.01 11,175 Ap 13,573 March 1.17 1.16 .10 1.14 15,716 May 20,930 April 0.8 0.77 0.96 0.86 17,136 Jun 22,830 May 1.39 1.23 1.05 1.22 15.075 Jul 25,206 June 1.55 1.46 1.53 1.51 15,924 Aug 18,360 July .59 1.49 1.67 1.58 15,928 Sep 10, 199 August 1.11 1.20 1.15 13,372 Oct 12,672 September 0.79 0.73 0.76 13,522 11 Nov 12,851 October 0.92 0.95 0.94 16,973 Dec 6,246 15,795 1.03 November 0.65 0.87 0.76 16,492 13 Jan 15,716 16,012 0.98 December 1.03 1.00 0.93 0.99 16.846 14 Feb 17,341 16,557 1.05 12.86 17,230 Mar 20,032 17,163 1.17 17,537 16 Apr 14.853 17,270 0.86 17,198 17 May 24,324 17,552 1.39 19,915 18 Jur 27,890 17,974 1.55 18,416 19 Jul 29.185 18,306 1.59 18,438 20 Aug 20.494 18,484 1.11 17,778 21 Sep 15.011 18,885 0.79 19,682 22 Oct 17.786 19,311 0.92 18,979 23 Nov 2,485 19,280 0.65 16,490 24 Dec 19.547 19,555 1.00 19,844 25 Jan 17.160 19,676 0.87 18,394 26 Feb 21.596 20,030 1.08 21,457 27 Mar 23,569 20,325 1.16 20,634 28 Apr 15,779 20,402 0.77 18,270 29 May 25,183 20,474 1.23 20,618 30 Jun 30,255 20,671 1.46 19,978 31 Jul 30,999 20,822 1.49 19,584 32 Aug 25,407 21,231 1.20 22,041 33 Sep 15,542 21,276 0.73 20,378 34 Oct 20.495 21,501 0.95 21,870 35 Nov 19,115 22,054 0.87 25,246 36 Dec 20,520 22,135 0.93 20,831 Jan 21,242 22,475 0.95 22,769 38 Feb 19.968 22,340 0.89 19,840 39 Mar 24.674 22,432 1.10 21,601 40 Apr 21,972 22,948 0.96 25,440 41 May 23,949 22,845 1.05 19,609 42 Jun 35,586 23,289 1.53 23,498 43 Jul 40.042 24,043 1.67 25,298 44 Aug 32,246 24,613 1.31 27,974 45 Sep 17,480 24,774 0.71 22,918 46 Oct 21,599 24,866 0.87 23,048 47 Nov 16,875 24,679 0.68 22,288 48 Dec 21,242 24,740 0.86 21,564 Slope = 228 Intercept = 13,564\fUnits [pails of skis] ASP [] Amount [E] 80% of sales 19% of sales Cash lnw Account recelvahle Hera Manufacturing - Sales and Cash Collection Budget Year 4 Year 5 Dec 21,242 . . . 105 105 105 105 105 105 105 105 105 105 105 105 105 2,230,314 2,424,131 2,339,003 | 3 023 531 2,303,113 3,201,523 | 4 111 330 4,341,323 3,139,433 2 123 510 2,331,302 2,149,430 2 310,013 | 2,111,924 _ 2,413,329 1,345,422 2,033,221 3,294,111 3,413,293 2,551,549 1,702,856 2,110,241 1,119,544 460,705 501.532 514.472 433,233 625,390 132.351 324,903 605,993 404.423 501.132 - - 2 512 329 2 920 411 2 419 394 3 011 509 3 919 501 4 255 050 3 310 451 2 303 349 2 514 310 2 220 123 4,021,235 3,200,110 Cash Collection Expectations 80% of sales of month M are collected in M+1 19% of sales of month M are collected in M+2 1% of sales is never collected 105 2,8911 85 2,255,982 408,392 2,664,314 Your 5 Total Sales 334,009 35,070,984 Hera Manufacturing - Selling & Administrative Expense Budget Year 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Units [pairs of skis] ASP Amount Selling and Admin Expenses Total Sales salaries &benefits Sales commissions Selling expenses (TML) Advertising expenses Promotions Not collected sales Administrative salaries General Management T 7.5ME (Starting in March.) Selling expenses: Travel, meals and lodging of the 20 sales persons (Historical data indicate about 1KE/month.sales person) Advertising expenses: None in May to Aug. 100KE in Jan, Mar, Apr & Sept; 300KE in Feb and Oct; 500KE in Nov and Dec Promotions: Sell-in promotions of 50KE in Jun and Jul, of 60KE in Aug and Sell-out promotions of 500KE in Mar and Dec. Administrative salaries: 15 persons with average salary and benefits of 60KE/yr General management: Salaries &n benefits of the CEO (200KE), CMO (180KE), CFO (180KE) and a secretary (80KE) Shipping expenses: 1506 per 100 pairs of skis Office rent: 240KE/yr Office utilities: Historical data indicate average monthly expenses of 1KE Telecom expenses: Fixed monthly expenses: 1KE; Variable expenses : 0.003E /Sales amount IT expenses: 65E per person employed (exluding CEO; CMO; CFO and secretary) Insurance: 80KE paid quarterly at the begining of quarterHera Manufacturing - Direct Material Budget Desired ending Inventory - - . . . - . . . . . . Needed quanllty - - . . . - . . . . . . Beglnlng Inventory - - - - - . - . . . . Quantity to be produced - - - - - - . . . . . . Dlrect Material Budget E] Fiber glass Sci/ski pair - - - - - . . . . _ . Polymers 5Iski pair - - - - - . . . . . . Steel 7/ski pair - - - . - . .. . . . .. Plastic 1Iski pair - - - . . . _ _ _ _ Glue 1lski pair - - - - . . . . . _ . Tohl - - - - - - - - - - - - - Accounts payable 910.000 . Cash outflow (2) 910.000 - - - - - . - . . . . Inventory Desired ending inventory = 20% of following month units forecast to be sold Direct Material Budget: Fiber glass 30E per pair of skis Polymers 5 per pair of skis Steel 7 per pair of skis Plastic 1 per pair of skis Glue 1 per pair of skis Cash dlsbursement: Suppliers are paid the amount of material used in month M in Mil Closing inventory on Der; 31, Year 4 was 5'027 pairs of skis Accounts payable on Dec. 31, Year 4 were 910'000 Hera Manufacturing - Direct Labor Budget Year 5 Year 6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Units [pairs of skis] ASP Amount [E] Desired ending inventory Needed quantity Begining Inventory Quantity to be produced Direct Labour expenses Direct salaries & benefits Direct labor overtime cost Direct supervision s&b Supervision overtime costs: Engineers' salaries & benefits TI