1ST 2ND 3RD

BUDGETED UNIT SALES 40,000 60,000 100,000

SELLING PRICE $8.00 $8.00 $8.00
TOTAL SALES $320,000 $480,000 $800,000

CASH COLLECTION
1ST 2ND 3RD
BEGINNING ACCOUNTS RECEIVABLE $65,000
1ST QUARTER SALES $240,000 $80,000
2ND QUARTER SALES $360,000 $120,000
3RD QUARTER SALES $600,000
4TH QUARTER SALES
TOTAL COLLECTIONS $305,000 $440,000 $720,000
4TH YEAR 2
50,000 250,000
$8.00 $8.00
$400,000 $2,000,000

4TH YEAR 2
$65,000
$320,000
$480,000
$200,000 $800,000
$300,000 $300,000
$500,000 $1,965,000
 1ST 2ND 3RD
BUDGETED UNIT SALES 40,000 60,000 100,000
DESIRED ENDING INVENTORY 18,000 30,000 15,000
TOTAL PRODUCTION REQUIREMENT 58,000 90,000 115,000
BEGINNING INVENTORY 12,000 18,000 30,000
UNITS TO BE PRODUCED 46,000 72,000 85,000
4TH YEAR 2 1ST - YEAR 3
50,000 250,000 70,000
21,000 21,000 24,000
71,000 271,000 94,000
15,000 12,000 21,000
56,000 259,000 73,000
 1ST 2ND 3RD
UNITS TO BE PRODUCED 46,000 72,000 85,000
MATERIAL REQUIREMENT PER UNIT 5 5 5
PRODUCTION NEEDS 230,000 360,000 425,000
DESIRED ENDING INVENTORY 36,000 42,500 28,000
TOTAL MATERIALS NEEDED 266,000 402,500 453,000
BEGINNING INVENTORY 23,000 36,000 42,500
MATERIALS TO BE PURCHASED 243,000 366,500 410,500
MATERIAL COST PER POUND $0.80 $0.80 $0.80
TOTAL COST OF DIRECT MATERIALS $194,400 $293,200 $328,400

CASH PAYMENTS
1ST 2ND 3RD
BEGINNING ACCOUNTS PAYABLE $81,500
1ST QUARTER PURCHASES $116,640 $77,760
2ND QUARTER PURCHASES $175,920 $117,280
3RD QUARTER PURCHASES $197,040
4TH QUARTER PURCHASES
TOTAL PAYMENT FOR DIRECT MATERIALS $198,140 $253,680 $314,320
4TH YEAR 2 1ST - YEAR 3
56,000 259,000 73,000
5 5 5
280,000 1,295,000 365,000
36,500 36,500
316,500 1,331,500
28,000 23,000
288,500 1,308,500
$0.80 $0.80
$230,800 $1,046,800

4TH YEAR 2
$81,500
$194,400
$293,200
$131,360 $328,400
$138,480 $138,480
$269,840 $1,035,980
 1ST 2ND 3RD
UNITS TO BE PRODUCED 12,000 10,000 13,000
DIRECT LABOR HOUR PER UNIT 0.2 0.2 0.2
TOTAL DIRECT LABOR HOURS REQUIRED 2,400 2,000 2,600
DIRECT LABOR RATE PER HOUR $12 $12 $12
TOTAL DIRECT LABOR COSTS $28,800 $24,000 $31,200
4TH YEAR
14,000 49,000
0.2 0.2
2,800 9,800
$12 $12
$33,600 $117,600
 1ST 2ND 3RD
UNITS TO BE PRODUCED 12,000 10,000 13,000
DIRECT LABOR HOUR PER UNIT 0.2 0.2 0.2
TOTAL DIRECT LABOR HOURS REQUIRED 2,400 2,000 2,600
VARIABLE MFG. OH RATE PER DLH $1.75 $1.75 $1.75
TOTAL VARIABLE MFG. OVERHEAD $4,200 $3,500 $4,550
TOTAL FIXED MFG. OVERHEAD $86,000 $86,000 $86,000
TOTAL MANUFACTURING OVERHEAD $90,200 $89,500 $90,550
TOTAL NONCASH MFG. OVERHEAD $23,000 $23,000 $23,000
TOTAL PAYMENT FOR MFG. OVERHEAD $67,200 $66,500 $67,550
4TH YEAR
14,000 49,000
0.2 0.2
2,800 9,800
$1.75 $1.75
$4,900 $17,150
$86,000 $344,000
$90,900 $361,150
$23,000 $92,000
$67,900 $269,150
 1ST 2ND 3RD
BUDGETED UNIT SALES 15,000 16,000 14,000
VARIABLE S AND A EXP. PER UNIT $2.50 $2.50 $2.50
TOTAL VARIABLE S AND A EXPENSE $37,500 $40,000 $35,000
ADVERTISING EXPENSE $8,000 $8,000 $8,000
EXECUTIVE SALARIES $35,000 $35,000 $35,000
DEPRECIATION $20,000 $20,000 $20,000
TOTAL FIXED S AND A EXPENSE $63,000 $63,000 $63,000
INSURANCE $5,000 $5,000
PROPERTY TAXES $8,000
TOTAL S AND A EXPENSE $105,500 $111,000 $103,000
DEPRECIATION $20,000 $20,000 $20,000
TOTAL PAYMENT FOR S AND A EXPENSE $85,500 $91,000 $83,000
4TH YEAR
13,000 58,000
$2.50 $2.50
$32,500 $145,000
$8,000 $32,000
$35,000 $140,000
$20,000 $80,000
$63,000 $252,000
$10,000
$8,000
$95,500 $415,000
$20,000 $80,000
$75,500 $335,000
 MAY CASH BUDGET
BEGINNING CASH BALANCE $9,000
CASH COLLECTIONS $184,000
TOTAL CASH AVAILABLE $193,000

CASH PAYMENT FOR PURCHASES $111,000

CASH PAYMENT FOR S AND A EXPENSES $72,000
PURCHASE OF EQUIPMENT $6,500 $189,500

NET CASH AVAILABLE (USED) $3,500

FINANCING:
PAYMENT OF NOTE PAYABLE -$14,500
INTEREST -$100
LOAN OBTAINED FROM BANK $20,000 $5,400

ENDING CASH BALANCE $8,900

CASH COLLECTIONS
MAY JUNE
APRIL SALES $54,000
MAY SALES $130,000 $70,000
TOTAL COLLECTIONS $184,000 $70,000

CASH PAYMENTS FOR PURCHASES

MAY JUNE
APRIL PURCHASES $63,000
MAY PURCHASES $48,000 $72,000
TOTAL PAYMENTS $111,000 $72,000
 MINDEN COMPANY
BUDGETED INCOME STATEMENT
FOR THE MONTH ENDED MAY 31, XXXX

SALES
COST OF GOODS SOLD:
BEGINNING INVENTORY $30,000
PURCHASES $120,000
TOTAL GOODS AVAILABLE FOR SALE $150,000
ENDING INVENTORY $40,000
GROSS PROFIT
SELLING AND ADMINISTRATIVE EXPENSE
NET OPERATING INCOME
INTEREST EXPENSE
NET INCOME
$200,000

$110,000
$90,000
$74,000
$16,000
$100
$15,900

CASH
ACCOUNTS RECEIVABLE
INVENTORY
BUILDING AND EQUIPMENT, NET
TOTAL ASSETS
ACCOUNTS PAYABLE
NOTES PAYABLE
CAPITAL STOCK, NO-PAR
RETAINED EARNINGS
TOTAL LIABILITIES AND SHE
MINDEN COMPANY
BUDGETED BALANCE SHEET
MAY 31, XXXX
ASSETS
FROM CASH BUDGET
TO BE COLLECTED IN JUNE
FROM THE BUDGETED INCOME STATEMENT
207,000 + 6,500 - 2,000
LIABILITIES AND STOCKHOLDERS' EQUITY
TO BE PAID IN JUNE
FROM CASH BUDGET
42,500 + 15,900
 $8,900
$70,000
$40,000
$211,500
$330,400

$72,000
$20,000
$180,000
$58,400
$330,400