accounting assignment budget
TRANSCRIPT
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Judd's Reproductions 2011 2011 2011 2012 2012 2012
a. October November December January February M
Unit Production and Sales
- Chairs 900 975 950 1020 1191- Tables 175 188 201 200 237
- Cabinets 90 102 95 109 120
- Total revenue $499,500 $547,800 $541,900 $580,200 $667,500 $6
- Cash sales: 25% of revenue $124,875 $136,950 $135,475 $145,050 $166,875 $1
- Credit card sales: 35% of rev. $174,825 $191,730 $189,665 $203,070 $233,625 $2
- Exporter sales: 40% of rev. $199,800 $219,120 $216,760 $232,080 $267,000 $2
- Bad Debts: 3% of export sales $6,962 $8,010
- Cash Sales Discounts: 5% of cash sales $7,253 $8,344
- Credit Card Fees: 3% of credit card sales $6,092 $7,009
Carpenter and Helper Hours- Required carpenter hours 1562 1788.9
- Carpenters 9 9 10
- Helpers: 1.5 x number of carpenters 14 14 15
- Carpenter regular hours: 172 per carpenter 1548 1720
- Carpenter overtime hours 14 68.9
- 5% of regular carpenter hrs, must be > overtime hours 77.4 86
- Helper regular hours: 172 per helper 2408 2580
- Helper overtime hours 0 103.35
Cash Inflows
- From 3 months previous: 17% of export sales $33,966 $37,250 $
- From 2 months previous: 50% of export sales 109,560 108,380 1
- From 1 month previous: 30% of export sales + 97% of credit card sales 249,003 266,602 3
- From current month: 95% of cash sales 137,798 158,531 1
- Interest on cash balance: 3%/yr if previous mo. ending bal > $50,000 0 0
- Total cash inflows $530,327 $570,764 $6
Cash Outflows
- Carpenter wages: $24 per regular hr.; $36 per overtime hr. $37,656 $43,760 $
- Helper wages: $14 per regular hr.; $21 per overtime hr. 33,712 38,290
- Supplies and other costs: $5 per carpenter hour 7,810 8,945- Flexible support costs: $20 per carpenter hour 31,240 35,778
- Maintenance costs: $15 per carpenter hour 23,430 26,834
- Wood costs: $30 per unit of wood 127,650 146,610 1
- Factory Rent: $150,000 per quarter 150,000 0
- Capacity-Related costs: $40,000 per month 40,000 40,000
- Administrative Salaries: $25,000 per month 25,000 25,000
- Selling Costs: $30,000 per month 30,000 30,000
- Advertising Expenditures: $50,000 per month 50,000 50,000
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- Shipping costs 43,015 49,470
- Flexible selling costs: 6% of product list prices 34,812 40,050
- Interest on line of credit: 10%/yr based on last month's bal. 0 1,242
- Mach. purch.: $5000 x no. of carpenters (Jan. and July) 45,000 0
- Total cash outflows $679,325 $535,978 $5
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Cash Flow Analysis
- Opening cash $50,000 $50,000 $
- Net cash flow: cash inflows - cash outflows -148,998 34,785
- Cash before financing -98,998 84,785 1
- Opening line-of credit 0 148,998 1
- Line-of-credit increase 148,998 0
- Line-of-credit payment 0 34,785
- Line of credit closing balance 0 148,998 114,213
- Ending cash: $50,000 minimum 50,000 50,000 50,000
Depreciation
- Machinery, Jan 1, 2007 $360,000
- Purchases 45,000 0
- Depreciation expense: 10% of year-end balance
- Machinery, Dec 31, 2007
Accounts Receivable
- 12/31/07 bal: 97% of Dec. credit card sales + 97%, 67%, and 17% of
Dec., Nov., and Oct. export sales, respectively
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Total
$8,107,600
$2,026,900
$2,837,660
$3,243,040
$97,291
$101,345
$85,130
$551,317
1,621,520
3,725,442
1,925,555
3,063
$534,000
478,849
108,859435,436
326,577
1,786,290
600,000
480,000
300,000
360,000
600,000
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600,765
486,456
3,213
100,000
$7,200,445
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$360,000
100,000
(46,000)
$414,000
$727,737
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January February March
$47,178 $46,770 $46,383
137,560 136,420
313,425
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150 net interest outflow
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Judd's Reproductions
b. Cash sales to exporters --> 5% x 40% drop in sales across products October November December January February March
Unit Production and Sales
- Chairs 900 975 950 1000 1167 1155
- Tables 175 188 201 196 232 238
- Cabinets 90 102 95 107 118 117
- Total revenue $499,500 $547,800 $541,900 $569,000 $654,600 $655,800
- Cash sales: (25%+38%)/98% of revenue $124,875 $136,950 $135,475 $365,786 $420,814 $421,586
- Credit card sales: 35% /98% of rev. $174,825 $191,730 $189,665 $203,214 $233,786 $234,214
- Exporter sales: 40% of rev. in 2011; all cash in 2012 $199,800 $219,120 $216,760 $0 $0 $0
- Bad Debts: 3% of export sales $0 $0 $0
- Cash Sales Discounts: 5% of cash sales $18,289 $21,041 $21,079
- Credit Card Fees: 3% of credit card sales $6,096 $7,014 $7,026
Carpenter and Helper Hours
- Required carpenter hours 1532 1754.8 1759
- Carpenters 9 9 10 10
- Helpers: 1.5 x number of carpenters 14 14 15 15
- Carpenter regular hours: 172 per carpenter 1548 1720 1720
- Carpenter overtime hours 0 34.8 39
- 5% of regular carpenter hrs, must be > overtime hours 77.4 86 86
- Helper regular hours: 172 per helper 2408 2580 2580
- Helper overtime hours 0 52.2 58.5
Cash Inflows
- From 3 months previous: 17% of export sales $33,966 $37,250 $36,849
- From 2 months previous: 50% of export sales 109,560 108,380 0
- From 1 month previous: 30% of export sales + 97% of credit card sales 249,003 197,118 226,772
- From current month: 95% of cash sales 347,496 399,774 400,506
- Interest on cash balance: 3%/yr if previous mo. ending bal > $50,000 0 166 706
- Total cash inflows $740,025 $742,688 $664,834
Cash Outflows
- Carpenter wages: $24 per regular hr.; $36 per overtime hr. $37,152 $42,533 $42,684
- Helper wages: $14 per regular hr.; $21 per overtime hr. 33,712 37,216 37,349
- Supplies and other costs: $5 per carpenter hour 7,660 8,774 8,795
- Flexible support costs: $20 per carpenter hour 30,640 35,096 35,180
- Maintenance costs: $15 per carpenter hour 22,980 26,322 26,385
- Wood costs: $30 per unit of wood 125,190 143,790 144,420
- Factory Rent: $150,000 per quarter 150,000 0 0
- Capacity-Related costs: $40,000 per month 40,000 40,000 40,000
- Administrative Salaries: $25,000 per month 25,000 25,000 25,000
- Selling Costs: $30,000 per month 30,000 30,000 30,000
- Advertising Expenditures: $50,000 per month 50,000 50,000 50,000
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- Shipping costs 42,185 48,515 48,590
- Flexible selling costs: 6% of product list prices 34,140 39,276 39,348
- Interest on line of credit: 10%/yr based on last month's bal. 0 0 0
- Mach. purch.: $5000 x no. of carpenters (Jan. and July) 45,000 0 0
- Total cash outflows $673,659 $526,522 $527,751
Cash Flow Analysis
- Opening cash $50,000 $116,366 $332,532
- Net cash flow: cash inflows - cash outflows 66,366 216,166 137,084
- Cash before financing 116,366 332,532 469,616
- Opening line-of credit 0 0 0
- Line-of-credit increase 0 0 0
- Line-of-credit payment 0 0 0
- Line of credit closing balance 0 0 0 0
- Ending cash: $50,000 minimum 50,000 116,366 332,532 469,616
Depreciation
- Machinery, Jan 1, 2007 $360,000
- Purchases 45,000 0 0
- Depreciation expense: 10% of year-end balance
- Machinery, Dec 31, 2007
Accounts Receivable
- 12/31/07 bal: 97% of Dec. credit card sales + 97%, 67%, and 17% of
Dec., Nov., and Oct. export sales, respectively
Item Data Chairs Tables Cabinets
Price $200 $900 $1,800
Carpenter hours 0.4 2.5 6
Units of wood 1 8 15
Packaging & shipping costs $15 65 $135
Add new carpenters if projected monthly overtime exceeds 5% of total regular carpenter hours available.
Shareholder's equity, Jan. 1, 2007 $985,008
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April May June July August September October November December Total January
1171 1176 1180 1170 1175 1198 1195 1183 1168
245 247 250 237 248 238 243 239 250
123 120 123 121 119 124 123 123 117
$676,100 $673,500 $682,400 $665,100 $672,400 $677,000 $679,100 $673,100 $669,200 $7,947,300
$434,636 $432,964 $438,686 $427,564 $432,257 $435,214 $436,564 $432,707 $430,200 $5,108,979
$241,464 $240,536 $243,714 $237,536 $240,143 $241,786 $242,536 $240,393 $239,000 $2,838,321
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$21,732 $21,648 $21,934 $21,378 $21,613 $21,761 $21,828 $21,635 $21,510 $255,449
$7,244 $7,216 $7,311 $7,126 $7,204 $7,254 $7,276 $7,212 $7,170 $85,150
1818.9 1807.9 1835 1786.5 1804 1818.2 1823.5 1808.7 1794.2
11 11 11 11 11 11 11 11 11
17 17 17 17 17 17 17 17 17
1892 1892 1892 1892 1892 1892 1892 1892 1892
0 0 0 0 0 0 0 0 0
94.6 94.6 94.6 94.6 94.6 94.6 94.6 94.6 94.6
2924 2924 2924 2924 2924 2924 2924 2924 2924
0 0 0 0 0 0 0 0 0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
0 0 0 0 0 0 0 0 0 0 0
227,188 234,220 233,320 236,403 230,410 232,939 234,532 235,260 233,181 2,753,172 231,830
412,904 411,316 416,751 406,186 410,644 413,454 414,736 411,072 408,690 4,853,530
1,049 917 1,177 1,437 1,189 1,439 1,700 1,590 1,854 13,224
$641,141 $646,453 $651,248 $644,026 $642,243 $647,832 $650,968 $647,921 $643,725
$45,408 $45,408 $45,408 $45,408 $45,408 $45,408 $45,408 $45,408 $45,408 $531,041
40,936 40,936 40,936 40,936 40,936 40,936 40,936 40,936 40,936 476,701
9,095 9,040 9,175 8,933 9,020 9,091 9,118 9,044 8,971 106,714
36,378 36,158 36,700 35,730 36,080 36,364 36,470 36,174 35,884 426,854
27,284 27,119 27,525 26,798 27,060 27,273 27,353 27,131 26,913 320,141
149,280 148,560 150,750 146,430 148,320 148,860 149,520 148,200 147,690 1,751,010
150,000 0 0 150,000 0 0 150,000 0 0 600,000
40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 480,000
25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000
30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000
50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 600,000
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50,095 49,895 50,555 49,290 49,810 50,180 50,325 49,885 49,565 588,890
40,566 40,410 40,944 39,906 40,344 40,620 40,746 40,386 40,152 476,838
0 0 0 0 0 0 0 0 0 0 -13,224
0 0 0 55,000 0 0 0 0 0 100,000
$694,041 $542,525 $546,993 $743,430 $541,978 $543,732 $694,875 $542,163 $540,519 $7,118,188
$469,616 $416,716 $520,644 $624,899 $525,495 $625,759 $729,859 $685,952 $791,710
-52,900 103,928 104,255 -99,404 100,265 104,100 -43,907 105,758 103,206
416,716 520,644 624,899 525,495 625,759 729,859 685,952 791,710 894,916
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
416,716 520,644 624,899 525,495 625,759 729,859 685,952 791,710 894,916
$360,000
0 0 0 55,000 0 0 0 0 0 100,000
(46,000)
$414,000
$231,830
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February March
BALANCE SHEET, DEC. 31,2012
Cash $894,916
Accounts Receivable 231,830 Bank Loan
Machinery and Equipment 414,000 Owner's Equity
$0 $0 $1,540,746
0
INCOME STATEMENT, DEC. 31,2012
Revenue
Chairs $2,787,600
Tables $2,576,700
Cabinets $2,583,000 $7,947,300
Flexible Resource Expenses
Carpenters $531,041
Helpers 476,701Maintenance 320,141
Flexible Support 426,854
Selling 476,838
Shipping 588,890
Supplies 106,714
Wood 1,751,010 $4,678,188
Total Assets Total
Liabilities and
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Contribution Margin $3,269,113
Capacity-Related Resource
Expenses
net interest outflow Administrative Staff 300,000
Depreciation 46,000
Factory Rent 600,000
Selling 360,000
Other Factory 480,000 1,786,000
Other Expenses
Advertising Costs 600,000
Bad Debts $0
Cash Sales Discounts $255,449
Credit Card Fees $85,150
Net Interest Charges -13,224 927,375
Before Tax Income $555,738
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$0
1,540,746
$1,540,746
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Judd's Reproductionsb. Cash sales to exporters --> 5% x 40% drop in sales across products
Unit Production and Sales
CabinetsTablesChairsTotal revenueCash sales: (25%+38%)/98% of revenueCredit card sales: 35% /98% of rev.Exporter sales: 40% of rev. in 2011; all cash in 2012Bad Debts: 3% of export salesCash Sales Discounts: 5% of cash salesCredit Card Fees: 3% of credit card sales
Carpenter and Helper Hours
Required carpenter hoursCarpentersHelpers: 1.5 x number of carpentersCarpenter regular hours: 172 per carpenterCarpenter overtime hours5% of regular carpenter hrs, must be> overtime hours
Helper regular hours: 172 per helperHelper overtime hoursCash Inflows
From 3 months previous: 17% of export salesFrom 2 months previous: 50% of export salesFrom 1 month previous: 30% of export sales + 97% of credit card salesFrom current month: 95% of cash salesInterest on cash balance: 3%/yr if previous mo. ending bal> $50,000Total cash inflowsCash Outflows
Carpenter wages: $24 per regular hr.; $36 per overtime hr.Helper wages: $14 per regular hr.; $21 per overtime hr.
Supplies and other costs: $5 per carpenter hourFlexible support costs: $20 per carpenter hourMaintenance costs: $15 per carpenter hourWood costs: $30 per unit of woodFactory Rent: $150,000 per quarterCapacity Related costs: $40,000 per monthAdministrative Salaries: $25,000 per monthSelling Costs: $30,000 per monthAdvertising Expenditures: $50,000 per monthShipping costsFlexible selling costs: 6% of product list prices
Interest on line of credit: 10%/yr based on last month's bal.Mach. purch.: $5000 x no. of carpenters (Jan. and July)Total cash outflows
Cash Flow Analysis
Opening cashNet cash flow: cash inflows - cash outflowsCash before financingOpening line-of creditLine-of-credit increaseLine-of-credit payment
Line of credit closing balance
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Ending cash: $50,000 minimum
Depreciation
Machinery, Jan 1, 2007PurchasesDepreciation expense: 10% of year-end balanceMachinery, Dec 31, 2007
Accounts Receivable
12/31/07 bal: 97% of Dec. credit card sales + 97%, 67%, and 17% of Dec., Nov., and Oct. export sales,
respectively
Item Data
PriceCarpenter hoursUnits of wood
Packaging & shipping costs
Add new carpenters if projected monthly overtime exceeds 5% of total regular carpenter hours available.
Shareholder's equity, Jan. 1, 2007
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october november december january february march april may june july
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