Sweet Beginnings Co.

Projected Cash Budget for 20X6

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Sales 20X5 1,361,240 2,035,060 3,008,340 6,193,650 10,617,680 13,449,060 12,475,770 6,282,130 3,539,230 3,008,340 2,388,980 1,946,570 66,306,050

Sales Forecast 20X6 1,633,488 2,442,072 3,610,008 8,051,745 13,802,984 17,483,778 15,594,713 7,852,663 4,424,038 3,760,425 2,986,225 2,433,213 84,075,350

Sales Forecast 20X7 1,960,186 2,930,486 4,890,672

Cash Receipts from sales 1,433,388 1,167,942 980,093 1,465,243 2,166,005 4,831,047 8,281,790 10,490,267 9,356,828 4,711,598 2,654,423 2,256,255 49,794,878
two months before (60%)

Cash Receipts from sales 778,628 653,395 976,829 1,444,003 3,220,698 5,521,194 6,993,511 6,237,885 3,141,065 1,769,615 1,504,170 1,194,490 33,435,483
last month (40%)
Cash Receipts from 2,212,016 1,821,337 1,956,922 2,909,246 5,386,703 10,352,241 15,275,302 16,728,152 12,497,893 6,481,213 4,158,593 3,450,745 83,230,361
Collection

Less: Purchase of Raw 1,985,504 4,428,460 7,591,641 9,616,078 8,577,092 4,318,964 2,433,221 2,068,234 1,642,424 1,338,267 1,078,102 1,611,768 46,689,754
Materials
Less: Payment for 456,667 675,071 1,505,676 2,581,158 3,269,466 2,916,211 1,468,448 827,295 703,199 558,424 455,011 366,555 15,783,183
Salaries and Wages
Less: Payment for 49,005 73,262 108,300 241,552 414,090 524,513 467,841 235,580 132,721 112,813 89,587 72,996 2,522,261
Delivery Contractors
Less: Dividends Paid 450,000 450,000 450,000 450,000 1,800,000

Less: Income Tax Paid 1,321,900 363,835 1,862,285 1,319,433 4,867,453

Net Cash Flow (279,161) (3,355,456) (7,698,696) (10,851,442 (7,237,780) 2,142,552 10,905,792 11,734,758 9,569,548 4,471,709 1,216,460 949,426 11,567,710
)
Add: Beginning Cash 641,123 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 640,000 641,123

Less: Required Ending (640,000) (640,000) (640,000) (640,000) (640,000) (640,000) (640,000) (640,000) (640,000) (640,000) (640,000) (640,000) (640,000)
Balance
Add: Return on - - - - - - - - - 26,747 71,732 84,614 183,092
Investment (12%)
Less: Interest Borrowing (7,834) (11,646) (56,541) (159,944) (306,762) (407,356) (384,220) (243,933) (90,722) (1,668,958)
(16%)
Less: Repayment of - - - - - (1,735,195) (10,521,571 (11,490,826 (6,804,121) (587,575)
Principal ) )

Add: Liquidation of -
Investment
Required Financing (285,872) (3,367,102) (7,755,237) (11,011,386 (7,544,542) - - - -
)

Excess Cash 2,674,706 4,498,456 1,288,192 1,034,040 9,495,393

Loan Balance - Beginning (587,575) (873,447) (4,240,549) (11,995,786) (23,007,171 (30,551,714 (28,816,518 (18,294,947 (6,804,121) - - - (125,171,829)
) ) ) )

Add: Required Financing (285,872) (3,367,102) (7,755,237) (11,011,386) (7,544,542) - - - - - - - (29,964,139)

Less: Repayments - 1,735,195 10,521,571 11,490,826 6,804,121 - - - 30,551,713

Loan Balance - End (873,447) (4,240,549) (11,995,786 (23,007,171) (30,551,714 (28,816,518 (18,294,947 (6,804,121) (0) - - -
) ) ) )

Investment Balance- 2,674,706 7,173,161 8,461,353 18,309,220

Beginning
Add: Excess Cash - - - - - - - 2,674,706 4,498,456 1,288,192 1,034,040 9,495,393

Less: Liquidations - - - - - - - - - - - - -

Investment Balance - End - - - - - - - - 2,674,706 7,173,161 8,461,353 9,495,393 27,804,613

 Sweet Beginnings Co.
Projected Balance Sheet for 20X6 Computation

Sweet Beginnings Co.

Cash ₱ 640,000
Projected Income Statement for 20X6 Computation
Accounts receivable ₱ 4,224,948 Ending Balance of Cash budget
Inventories ₱ 1,076,000 3,379,958 + 84,075,350 - 83,230,361
Short termSales
Gross investments ₱ 9,495,393
₱ 84,075,350 Same as last year
Total current assets ₱ 15,436,340 Resulting balance from cash budget
Cost of Goods ₱ 61,963,533

Gross
Gross Profit
plant, property and equipment ₱ 22,111,817
₱ 9,896,000 84,075,350 x 73.70%

Accumulated depreciation
Delivery Fees ₱ 2,268,100
₱ 2,522,261 8,696,000 + 1,200,000
Net PPE ₱ 7,627,900 1,278,500 + 989,600
Operating Expenses ₱ 5,044,521
Total Assets ₱ 23,064,241
Depreciation ₱ 989,600
84,075,350 x 3.00%
Accounts payable
Interest Expense ₱ 5,189,351
₱ 1,485,866 84,075,350 x 6.00%
Short term borrowings ₱ -
654,234
989,600 + 61,963,533 + 5,044,521 - 46,689,754 - 15,783,183
x 10.00%
Pre-tax
Payable profit
to PPE supplier ₱ 12,069,570
₱ 1,200,000
ROI + Interest on borrowings = (-183,092+1,668,958)
Accrued taxes
Income Tax ₱ 434,575
₱ 3,980,127
Cost to be paid for Equipment Purchase
Total current liabilities ₱ 6,823,926
Net Profit ₱ 8,089,443 9,179,863 x (1-73.7%) x (1-40%) x 30%

Owners’ equity ₱ 16,240,315 22,111,817 x (1-40%) x 30%

Total liabilities and equity ₱ 23,064,241

9,950,872 + 8,089,443 - 1,800,000