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Dispensers of California
Dispensers of California
Dispensers of California, Inc.
12-month Profit Plan
Sales $598,500
Cost of goods sold
Components $197,000
Mfg payroll 145,000
Other Mfg. 62,000
Depreciation 8,500 412,500
Gross margin $186,000
Selling, general and
Administration 63,000
Patent 20,000
Redesign costs 25,000
Incorporation costs 2,500
Operating profit $75,500
Interest 500
Profit before taxes $75,000
Tax expense 22,500
Net Income $52,500
Dispensers of California, Inc.
Projected Year-end Balance Sheet
Assets Liabilities
Cash $78,400 Taxes payable $22,500
Components inventory 15,100 Current liabilities $22,500
Current assets $93,500
Equipment (net) 76,500 Owners Equity
Patent (net) 100,000 Capital stock $200,000
___ Retained earnings 47,500
$270,000 $270,000
Dispensers of California, Inc.
Change in Retained Earnings
Beginning retained earnings $0
Net income 52,500
Dividends (5,000)
Ending retained earnings $47,500
Dispensers of California, Inc.
Cash Reconciliation
Receipts Disbursements
New equity capital $80,000
Incorporation $2,500
Equipment 85,000
Redesign 25,000
Component parts 212,100
Bank loan 30,000
Bank loan 30,000
Loan interest 500
Manufacturing payroll 145,000
Other manufacturing 62,000
S G & A 63,000
Sales 598,500
Dividend 5,000
Total $708,500 $630,100
Cash Reconciliation
Receipts $708,500
Disbursements 630,100
Ending Balance $78,400
Dispensers of California, Inc.
Statement of Cash Flows (Direct Method)
Collections from customers $598,500
Payments to suppliers (212,100)
Payments to employees (295,000)
Legal payments (2,500)
Interest (500)
Operating cash flow $89,400
Equipment purchases (85,000)
Investing cash flow $(85,000)
Bank loan 30,000
Repayment of bank loan (30,000)
Capital 80,000
Dividends (5,000)
Financing cash flow $75,000
Change in cash $78,400
Beginning cash 0
Ending cash $78,400