Sales Budget

January February March April

Forecasted Sales Unit 5000 6000 5500 7000
Price Per Unit 150 150 150 150
Gross Sales 750000 900000 825000 1050000

Production Budget
January February March April
Forecasted Sales Unit 5000 6000 5500 7000

Direct Material Budget

January February March April
Forecasted Sales Unit 5000 6000 5500 7000
Lumbar 50 50 50 50
Paint 4 4 4 4
Mis. Sup 5 5 5 5
Total Purchase Cost 295000 354000 324500 413000

Direct Labor Budget

January February March April
Forecasted Sales Unit 5000 6000 5500 7000
Labor Wages per unit 40 40 40 40
Total Labor Wages 200000 240000 220000 280000

Factory Overhead Budget

January February March April
Factory salaries 25000 25000 25000 25000
Taxes 5000 5000 5000 5000
Depreciation 22000 22000 22000 22000
Total Factory Overheads 52000 52000 52000 52000
 Cost of Goods Sold

Direct Material Purchases 1386500

Beginning Direct Material -60000
Ending Direct Material 84000
Direct Material Cost 1410500

Direct Labor Cost 940000

Manufacturing Overheads 208000
Total Manufacturing Costs 2558500

Beginning WIP 20000

Ending WIP -25000

Costs of Good Sold 2553500

Selling and Admin Expenses Budget

January February March April
Advertising Cost 4000 4000 4000 4000
Sales Commission 3750 4500 4125 5250
CEO Salary 12500 12500 12500 12500
CFO Salary 10000 10000 10000 10000
Admin Assistant 4000 4000 4000 4000

Mis. Office Expenses 1000 1000 1000 1000

Office Equipment Dep 500 500 500 500
Total Expenses 35750 36500 36125 37250

Proforma Income statement

January February March April

Gross Sales 750000 900000 825000 1050000

Direct Material Cost 295000 354000 324500 413000
Direct Labor Cost 200000 240000 220000 280000
Factory Overhead Cost 52000 52000 52000 52000
Total Selling and Admin Expenses 35750 36500 36125 37250
Gross Profit 167250 217500 192375 267750
 Cash Budget
January February March April
A/R 240000 660000
Cash Collected 450000 840000 855000 960000

A/P -180000 -200000

Cash Flow 510000 840000 855000 1420000

Cash in hand -72750 84750 307125 944875

Profit Margin
January February March April

PM 22.30% 24.17% 23.32% 25.50%

 Profit Margin is significantly close to expected profit margin of CEO.

 By 31 Mar they will not have enough money to move along with expansion. Because the cash
flow for march is 307125 USD.