CASH BUDGET for HAMPTON MACHINE TOOL(000 $) extended Repayment with dividends

September October November December January

Receipts:

A/R Collection(assumes 30-day;Oct& Nov.

less advances of $840 and $726, respectively) $684.00 $1,323.00 $779.00 $1,604.00 $2,265.00
Bank Loan $350.00
Total Cash Inflow $684.00 $1,673.00 $779.00 $1,604.00 $2,265.00

Expenditures:
A/P Payment(paid in 30 days) $948.00 $600.00 $600.00 $600.00 $600.00
Other Op. Outlays $400.00 $400.00 $400.00 $400.00 $400.00
CAPEX $350.00
Taxes $181.00 $181.00
Interest $15.00 $15.00 $20.25 $20.25
Loan Principal $1,350.00
Dividends $150.00
Total Cash Outflow $1,544.00 $1,015.00 $1,370.25 $2,701.25 $1,000.00

Beginning Cash $1,559.00 $699.00 $1,357.00 $765.75 -$331.50

Net Monthly Cash Flow -$860.00 $658.00 -$591.25 -$1,097.25 $1,265.00
ENDING CASH $699.00 $1,357.00 $765.75 -$331.50 $933.50
Pro Forma Income Statement
Sept. -Dec. 1979
Sales
Cost of sales and other expenses
Profit before taxes
Taxes
Profit after taxes
Dividends
Addition to retained earnings
Derivation
$7,537.00 As projected for Sept., Oct., Nov., Dec.
Equals -$1320 WIP Inventories-$420 RM
Inventories-$2400 Purchases-$47
$5,857.00 Depreciation-$1600 Outlays-$70 Interest
$1,680.00
$771.00 48% of PBT -$35 ITC
$909.00
$150.00 Proposed Dec. Dividend
$759.00
ProForma Balance Sheet
Dec. 1979 Derivation
Cash -$331.00 Plug-reconcile with Cash Budget
Accounts Receivable $2,265.00 Dec. Sales
$4765-$1320 reduction in WIP Inventories-
Inventories $3,024.00 $420 RM Inventories
Current Assets $4,958.00
Gross Fixed Assets $4,360.00 $4010+$350 CAPEX
Accumulated Depreciation $3,137.00 $3090 +$47 Depreciation
Net Fixed Assets $1,223.00
Prepaid Expenses $42.00 Unchanged from Aug.
Total Assets $6,223.00

Accounts Payable $600.00 Dec. Purchases

Accruals $552.00 Unchanged from Aug.
$479-$362 Tax Payments+$771 Sept.-Dec.
Taxes Payable $888.00 Liability
Current Liabilities $2,040.00
Long Term Debt - Paid Out in Dec. per Cash Budget
Net Worth $4,183.00 $3424+$759 Sept.-Dec. Retained Earnings
Total Liabilities & Net Worth $6,223.00