I See The Light Projected Income Statement For the Period Ending December 31, 20x1 25,000 lamps@ $45.00 @ $30.00 Sales 1,125,000.00 750,000.00 375,000.00 Cost of Goods Sold Gross Profit $ Selling Expenses: Fixed 23,000.00 75.000,00 $ (Commission per unit) @ $3.00 Variable 98,000.00 Administrative Expenses: Fixed 42,000.00 92,000.00 Variable @ $2.00 50,000.00 190,000.00 Total Selling and Administrative Expenses: Net Profit 185,000.00 I See The Light Projected Balance Sheet As of December 31, 20x1 Curent Assets Cash $ 34,710.00 67,500.00 Accounts Receivable Inventory Raw Material 500 $16.00 Lamp Kits 8,000.00 Work in Process 0 Finished Goods 3000 @ $30.00 90,000.00 200,210.00 Total Curent Assets Fixed Assets $ 20,000.00 Equipment Accumulated Depreciation 6,800.00 Total Fixed Assets 13,200.00 Total Assets 213,410.00 Current Liabilities Accounts Payable 54,000.00 54,000.00 $ Total Liabilities Stockholder's Equity $ 12,000.00 Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity 147,410.00 159,410.00 213,410.00 8 Cash Budget Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and Payables of 12/31/x1 will have a cash impact in 20x2.) 1. 17.00% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and February. 2. 89.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February. 3. All other manufacturing and operating costs are paid for when incurred. 4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses. 5. Minimum Cash Balance needed for 20x2, $165,000 . I See The Light Projected Cash Budget For the Year Ending December 31, 20x2 Round dollars to two places, $##.## Beginning Cash Balance Cash Inflows: Sales Collections: Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available Cash Outflows: Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less: Depreciation Total Cash Outflows Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) Budgeted Cash Balance I See The Light Projected Income Statement For the Period Ending December 31, 20x1 25,000 lamps@ $45.00 @ $30.00 Sales 1,125,000.00 750,000.00 375,000.00 Cost of Goods Sold Gross Profit $ Selling Expenses: Fixed 23,000.00 75.000,00 $ (Commission per unit) @ $3.00 Variable 98,000.00 Administrative Expenses: Fixed 42,000.00 92,000.00 Variable @ $2.00 50,000.00 190,000.00 Total Selling and Administrative Expenses: Net Profit 185,000.00 I See The Light Projected Balance Sheet As of December 31, 20x1 Curent Assets Cash $ 34,710.00 67,500.00 Accounts Receivable Inventory Raw Material 500 $16.00 Lamp Kits 8,000.00 Work in Process 0 Finished Goods 3000 @ $30.00 90,000.00 200,210.00 Total Curent Assets Fixed Assets $ 20,000.00 Equipment Accumulated Depreciation 6,800.00 Total Fixed Assets 13,200.00 Total Assets 213,410.00 Current Liabilities Accounts Payable 54,000.00 54,000.00 $ Total Liabilities Stockholder's Equity $ 12,000.00 Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity 147,410.00 159,410.00 213,410.00 8 Cash Budget Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and Payables of 12/31/x1 will have a cash impact in 20x2.) 1. 17.00% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and February. 2. 89.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February. 3. All other manufacturing and operating costs are paid for when incurred. 4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses. 5. Minimum Cash Balance needed for 20x2, $165,000 . I See The Light Projected Cash Budget For the Year Ending December 31, 20x2 Round dollars to two places, $##.## Beginning Cash Balance Cash Inflows: Sales Collections: Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available Cash Outflows: Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less: Depreciation Total Cash Outflows Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) Budgeted Cash Balance
