How are the ratios calculated?
Schedule 12 Net sales (note 1) Less: COGS Gross Margin Less: S&A expenses Net operating income Less: Interest expense Net income S $ $ S S $ S Little Annin Flagmakers Budgeted Income Statement (US$) Quarter Ending June 30 Quarter 1,115,224 759,000 356,224 191,638 164,586 2,000 162,586 Note 1: Computation of Net Sales Sales Less uncollectible amounts Net sales $ 1,173,920 $ 58,696 $ 1,115,224 Schedule 13 Little Annin Flagmakers Budgeted Balance Sheet($) Ending March 31 Ending June 30 Current assets Cash Accounts Receivable Raw Material (note 1) Finished goods inventory $ 37,745 $ $ 132,000 $ 32,200 $ $ 30,750 $ 232,695 $ 51,000 $168,432 29,568 33,000 $ 282,000 Plant and equipment Land Building and equipment Accumulated depreciation (note 2) Total Assets $ 520,000 $ 520,000 $1,800,000 $ 2,002,420 $ (750,000) $1,570,000 $ (840,000) $ 1,682,420 $1,802,695 $ 1,964,420 $ 49,896 Liabilities Accounts Payable Bank credit line Total Liabilities Stockholders equity Common stock Retained earnings $ 55,000 0 $ 55,000 0 $ 49,896 $ 500,000 $ 500,000 $1,247,695 $1,747,695 $ 1,374,281 $ 1,874,281 Total liabilities and stock holders equity $1,802,695 $ 1,924,177 Schedule 11 April $ Cash Budget (US$) May June Quarter 37,745 $ 30,000 $ 30,000 $ 37,745 Beginning Cash balance Add: Receipts Cash collections Total Cash Available $ 234,080 $ 385,352 $ 459,360 $ 1,078,792 $ 271,825 $ 415,352 $ 489,360 $ 1,116,537 Less disbursements Cash Payments for Materials Total Direct Labor Cost ($) Cash Disbursements for MOHD Cash Disbursements for S&A Dividends Equipment purchases Total Disbursements $ 108,575 $134,571 $ 114,576 $ 357,722 $ 56,920 $ 95,040 $ 51,040 $ 203,000 $ 47,180 $ 56,710 $ 45,710 $ 149,600 $ 52,530 $ 56,072 $ 53,036 $ 161,638 $ 12,000 $ 12,000 $ 12,000 $ 36,000 $ 47,820 $ $ 47,820 $ 277,205 $402,213 $ 276,362 $ 955,780 Excess (deficiency) of cash available $ $ (5,380) $ 13,139 $ 212,998 $ 160,757 is Financing: note 1 Beginning of month loan balance Borrowing during month Subtotal due before interest calc. $ Interest accrual at month end $ Loan balance before loan repayment $ Loan repayment $ Total loan balance at month end (P+I) $ $ 50,667 $ 51,333 $ 50,000 $ $ $ 50,000 50,000 $ 50,667 $ 51,333 $ 50,000 667 $ 667 $ 667 $ 2,000 50,667 $ 51,333 $ 52,000 $ 52,000 $ $ (52,000) $ (52,000) 50,667 $ 51,333 $ $ Ending Cash Balance $ 30,000 $ 30,000 $ 51,000 $ 51,000 Note 1: The salmon-pink cells may need to be calculated and entered separately. Ratios and Other Metrics (all ratios based on end of quarter amounts): Ability to take advantage of opportunities using end of quarter amounts: Working Capital Free Cash Flow Ability to pay interest on loan: Times Interest Earned Liquidity: Current Ratio Activity: Account Receivable Turnover Days in Receivables (days) Finished Goods Inventory Turnover Days in Finished Goods (days)
