Jan	Feb and etc till December
Units sold
Turnover
Cost of goods sold
Gross profit
Other expenses
Net profit
Cash flow budget
Cash inflow:
Opening cash balance	146,250
Received from customers
Bank loan
Total cash inflow
Cash outflow:
Goods produced
Fixed costs
Bank loan repayment
Total cash outflow
Net cash flow
Closing cash balance
Balance sheet
Assets
Cash	146250
Accounts receivable	68750
Stock	35000
Total	250,000
Liabilities & Equity
Short-term loan
Common stock	250000
Retained earnings
Total	250,000

Exercise 3: Budgeting Company X sells action games. Each game sells for Eur 55 and it costs Eur 35 (variable cost) to produce it. The company has monthly fixed costs of Eur. 10,000. By December 31, the company was in operation for three months and its balance sheet looked like this: Assets Cash Debtors Inventory Total Assets Liabilities & Equity Common Stock Ret. Earnings 250000 0 146250 68750 35000 250000 Total Liab& Equity 250000 13.03.2019 Exercise 3: Budgeting (cont.) . The number of units sold in Dec. was 750, in Nov. -500. . The turnover for Jan. is expected to be 1000 units, and then will increase by 500 each month. . To provide for prompt deliveries, the finished goods had to be ready 30 days before the planned sales. . The clients pay two months after delivery. . All fixed costs are paid in the month they occur. The Company would like to keep 30,000 minimum cash balance. Task . Prepare monthly budgeted profit/loss, balance sheet and cash flow statement. Is there a need to borrow additional cash? If yes, when and how much? 13 03 2019