Draft Budget - 2010/11

Sales
direct mail order
cycle shop
Budgeted total revenue
Direct materials
Indirect costs
Total Costs
Budgeted trading loss
Interest Payable
Possible tax loss recovery
Loss to Shareholders

units
950
1,300

Price
700
420

Revenue
665,000
546,000
1,211,000

846,118
446,580
1,292,698
(81,698)
(36,000)
35,000
(82,698)

Current Assets
Stocks of materials
Stock of finished machines
Trade debtors
Cash in hand
Total Assets

102,300
185,790
200,571
657

Share capital
Retained profits
Shareholders' Funds
Loan from Geraint Williams
Current Liabilities
Trade creditors
Bank overdraft
Total Capital and Liabilities

Budgeted Annual Indirect Costs

Indirect Materials
Workshop materials, including paint
Repairs and renewals

16,400
38,700

Adminstrative costs
Business rates
Heating, lighting and power
Other sundry expenses
Depreciation

43,000
21,200
5,300
4,600

74,100

Selling and Distribution costs

Advertising
Packaging and sundry materials
Travelling and hospitality
Postage and courier charges

20,000
12,640
10,400
25,000

68,040

Wages and salaries (including oncosts)

Dai Armstrong
Ffred Gregory
Janice Jones
Maldwyn Jones
Lewis Llewellyn
Emlyn Morgan
Gwyneth Morgan
Ianto Pritchard
Idris Pugh
Frieda Schleck
Gladys Wells
Total Indirect Costs

Draft Statement of Financial Position - 30 September 2010

Non-current Assets
Cost
Depr.

Freehold land
160,000
Freehold factory
80,000
32,000
Machinery and equipment
15,000
12,200

48,000
14,250
12,300
26,525
48,000
28,200
14,327
7,350
19,534
27,654
3,200

Net

160,000
48,000
2,800
210,800

489,318
700,118
30,000
205,254
235,254
200,000

87,500
177,364

264,864
700,118

55,100

249,340
446,580

Budgeted Direct costs per machine

Frame tube set
Frame lug set, including brackets
Front fork
Headset
Bottom bracket
Chain and chainset
Pedals (set)
Saddle, post and clamps
Handlebars, stem and grips
Brake levers and cables
Alloy extrusion (wheel rims)
Spokes (72 set for two wheels)
Sturmey-archer gear and brake hub
Dynamo and brake front hub
Tyres and inner tubes (set of two)
Steel sheet (mudguards and chainguard)
Wire (mudguard stays)
Paint
Basket
Rear carrier
Pump and brackets
Lock
Lamps
Assorted minor parts (kit)
Direct cost per unit

unit price

75.50
32.45
26.00
9.46
7.42
14.30
8.00
32.90
15.40
19.10
86.50
4.60
52.87
33.50
10.35
24.00
8.00
18.00
3.00
5.20
1.80
3.20
4.89
1.00

prod.
units
1
1
1
1
1
1
1
1
1
1
8
1
1
1
1
10
20
12
1
1
1
1
1
1

unit

75.50
32.45
26.00
9.46
7.42
14.30
8.00
32.90
15.40
19.10
10.81
4.60
52.87
33.50
10.35
2.40
0.40
1.50
3.00
5.20
1.80
3.20
4.89
1.00
376

Income Statement - last five years (year to 30/9/10 is unaudited draft)

year to 9/30/2010 9/30/2009 9/30/2008 9/30/2007
units
units
units
units
direct sales units
1,054
1,178
967
850
shop sales units
1,450
1,621
1,334
1,172
Total units
2,504
2,799
2,301
2,022

direct sales price

shop sales price
Total revenue

730
438
1,404,520

760
456
1,634,456

720
432
1,272,528

680
408
1,056,176

Direct material unit cost

Total direct materials
Indirect materials
Adminstrative costs
Selling and distribution
Wages and salaries
Total costs
Trading profit
Interest payable
Taxation
Shareholder profit
Dividends paid
Profit Retained

360
901,440
53,456
74,381
65,976
260,689
1,355,942
48,578
(30,401)
(5,453)
12,724
0
12,724

335
937,665
48,720
66,497
64,786
215,594
1,333,262
301,194
(25,860)
(82,600)
192,734
(150,000)
42,734

314
722,514
41,076
59,459
58,736
181,918
1,063,703
208,825
(22,674)
(55,845)
130,306
(90,000)
40,306

9/30/2006
units
743
1,010
1,753

650
390
876,850
-

Notes
Stocks of finished machines are valued at direct cost
Trade debtors represents amounts owing from cycle shop customers
The bank overdraft is unsecured

Option to "buy-in" wheels (bare - no tyres):

cost per wheel
Front wheel (dynamo)
46.00
Rear wheel (geared)
66.00

290
586,380
34,567
52,623
54,223
147,818
875,611
180,565
(20,000)
(48,170)
112,396
(80,000)
32,396

270
473,310
28,983
46,123
51,989
121,276
721,681
155,169
(20,000)
(40,551)
94,618
(60,000)
34,618