Professional Documents
Culture Documents
Table A Consolidated Income Statement, 2009-2011 (In Thousands of Dollars)
Table A Consolidated Income Statement, 2009-2011 (In Thousands of Dollars)
2009
2010
Net sales
14,079
15,065
COGS
9,011
10,244
Gross profit
5,068
4,821
Operating expense
3,520
3,615
Interest expense
105
125
Interest income
17
19
Pretax profit
1,461
1,099
Income tax
497
374
Net income
964
725
2011
16,360
10,798
5,562
4,090
128
15
1,359
462
897
Seasonal production
Level Production
18000
11880
6120
4320
94
32
1738
591
1,147
18000
10800
7200
3540
500
5,245
1,227
6,972
2,988
9,960
Accounts payable
Notes payable, bank
Accrued taxes
Long-term debt, current portion
Current liabilities
Long-term debt
Total liabilities
Shareholders equity
Total liabilities and shareholders equity
966
826
139
100
2,031
1,000
3,031
6,929
9,960
Seasonal production
level production
500
500
Exhibit 1 2012 Pro Forma Balance Sheets and Accured Taxes Under Seasonal Production (in thousands of dollars)
Cash
Accounts receivableb
Inventoryc
Current assets
Net PP&Ed
Total assets
a
Accounts payablee
Notes payable, bank
Accrued taxesf
Long-term debt, current portion
Current Liabilities
Long-term debtg
Total liabilities
Shareholders' equity
Total liabilities and equity
Accrued Taxes
Beg. accrued taxes
Accrual of monthly taxes
Tax payments
End. accrued taxes
Actual Dec
31, 2011
500
5,245
1,227
6,972
2,988
9,960
Jan
Feb
1,511
2,541
1,227
5,280
2,988
8,268
2,950
832
1,227
5,009
2,988
7,997
Mar
2,768
630
1,227
4,625
2,988
7,613
Apr
2,477
554
1,227
4,259
2,988
7,247
May
2,274
378
1,227
3,879
2,988
6,867
966
826
139
100
2,031
1,000
3,031
6,929
9,960
232
0
94
100
425
1,000
1,425
6,842
8,268
160
0
26
100
286
1,000
1,286
6,710
7,997
137
0
-188
100
49
1,000
1,049
6,564
7,613
125
0
-388
100
-163
1,000
837
6,409
7,247
53
0
-492
100
-339
1,000
661
6,206
6,867
139
139
-45
0
94
94
-68
0
26
26
-75
-139
-188
-188
-80
-120
-388
-388
-105
0
-492
Assumed equal to 50% of the current month's COGS for seasonal production; and was related to material purchases that accounts for 50% of COGS for 20
seasonal production and sales pattern.
e
Taxes payble on 2011 income are due March 15, 2012. On April 15, June 15, September 15, and December 15, 2012, payments of 25% of each of the estim
of $480,000. This implies a payment of $120,000 in April, June, September and December.
g
To be repaid at the at rate of $50,000 each June and December
f
Jun
1,946
239
1,227
3,413
2,988
6,401
Jul
1,625
391
1,227
3,243
2,988
6,231
Aug
1,246
643
1,227
3,116
2,988
6,104
59
0
-715
100
-556
950
394
6,007
6,401
125
0
-795
100
-571
950
379
5,851
6,231
-492
-103
-120
-715
-715
-80
0
-795
Sep
Oct
Nov
Dec
758
2,457
1,227
4,442
2,988
7,430
500
3,843
1,227
5,570
2,988
8,558
500
5,771
1,227
7,498
2,988
10,486
500
6,489 no change
1,227
8,216
2,988
11,204
178
0
-857
100
-578
950
372
5,732
6,104
980
0
-757
100
323
950
1,273
6,158
7,430
832
785
-590
100
1,126
950
2,076
6,482
8,558
1,889
80
-55
100
2,014
950
2,964
7,522
10,486
1,170
847
111
100
2,228
900
3,128
8,076
11,204
-795
-61
0
-857
-857
219
-120
-757
-757
167
0
-590
-590
536
0
-55
-55
285
-120
111
ounts for 50% of COGS for 2012. This represents a 30-day payment period. Since inventories are level, purchases will follow
nts of 25% of each of the estimated tax for 2012 are due. In estimating its tax liability for 2012, the company uses a tax liability
Exhibit 2 2012 Pro Forma Income Statement Under Seasonal Production (in thousands of dollars)
Jan
Feb
Mar
Apr
Net sales
702
486
414
378
a
COGS
463
321
273
249
Gross profit
239
165
141
129
Operating expensesb
Interest expense
Interest incomec
Profit (loss) before tax
Income taxesd
Net income
360
11
1
-132
-45
-87
360
7
3
-200
-68
-132
360
7
5
-222
-75
-146
May
162
107
55
360
7
5
-234
-80
-155
360
7
4
-308
-105
-203
Jan
Feb
Mar
Apr
May
Net sales
COGSa
Gross profit
702
900
-198
486
900
-414
414
900
-486
378
900
-522
162
900
-738
Operating expensesb
Interest expense
Interest incomec
Profit (loss) before tax
Income taxesd
Net income
360
11
1
-569
-193
-375
360
7
3
-779
-265
-514
360
7
5
-848
-288
-560
360
7
5
-885
-301
-584
360
7
4
-1,101
-374
-727
Jun
Jul
Aug
Sep
Oct
Nov
Dec
180
119
61
378
249
129
540
356
184
2,970
1,960
1,010
2,520
1,663
857
5,724
3,778
1,946
3,546
2,340
1,206
360
7
4
-302
-103
-200
360
7
3
-235
-80
-155
360
7
3
-181
-61
-119
360
7
2
645
219
426
360
7
1
491
167
324
360
11
1
1,576
536
1,040
360
7
1
839
285
554
7.3333333333
Jun
Jul
Aug
Sep
Oct
Nov
Dec
180
900
-720
378
900
-522
540
900
-360
2,970
900
2,070
2,520
900
1,620
5,724
900
4,824
3,546
900
2,646
360
7
4
-1,084
-368
-715
360
7
3
-886
-301
-585
360
7
3
-724
-246
-478
360
7
2
1,705
580
1,125
360
7
1
1,254
426
828
360
11
1
4,454
1,514
2,940
360
7
1
2,279
775
1,504
Total
18,000
11,880
6,120
18000
10800
7200
4,320
94
32
1,737
591
1,147
3,540
94
32
3,598
1223.32
$2,375
Materials purchased(2012)
5940
Total
18,000
10,800
7,200
4,320
94
32
2,817
958
1,859
Exhibit 3 2012 Pro Forma Cash Flow Statement Under Seasonal Production (in thousands of dollars)
Jan
Feb
Mar
Operating Activities
Net income
-87
-132
-146
Depreciation
25
25
25
Less: Increase (Decrease) in A/R
-2,704
-1,710
-202
Less: Increase (Decrease) in Inventory
0
0
0
Add: Increase (Decrease) in A/P
-735
-71
-24
Add: Increase (Decrease) in Accrued Taxes
-45
-68
-214
Cash flow from operations
1,862
1,464
-157
Investing Activities
Less: capital expenditures
Cash flow from operating and investing
Cash available before financing activities
Financing Activities
Less: bank note repayment
Less: debt repayment
Add: bank note issuance
Cash flow from financing
Total Cash Flow
Apr
-155
25
-76
0
-12
-200
-265
-25
1,837
1,837
-25
1,439
2,450
-25
-182
2,268
-25
-290
1,977
826
0
0
-826
0
0
0
0
0
0
0
0
0
0
0
0
1,011
1,439
-182
-290
Feb
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
-203
25
-176
0
-71
-105
-178
-200
25
-139
0
6
-223
-253
-155
25
151
0
65
-80
-296
-119
25
252
0
53
-61
-354
426
25
1,814
0
802
99
-463
324
25
1,386
0
-149
167
-1,018
1,040
25
1,928
0
1,057
536
731
554
25
718
0
-719
165
-693
-25
-203
1,774
-25
-278
1,496
-25
-321
1,125
-25
-379
746
-25
-488
258
-25
-1,043
-785
-25
706
706
-25
-718
-718
0
0
0
0
0
50
0
-50
0
0
0
0
0
0
0
0
0
0
0
0
0
0
785
785
706
0
0
-706
0
50
768
718
-203
-328
-321
-379
-488
-258
LP
Jan
Operating Activities
Net income
Depreciation
Less: Increase (Decrease) in A/R
Less: Increase (Decrease) in Inventory
Add: Increase (Decrease) in A/P
Add: Increase (Decrease) in Accrued Taxes
Cash flow from operations
Investing Activities
Less: capital expenditures
Cash flow from operating and investing
Cash available before financing activities
Financing Activities
Less: bank note repayment
Less: debt repayment
Add: bank note issuance
Cash flow from financing
Total Cash Flow
Feb
-66
25
-2704
479
-516
-34
1634
mar
-122
25
-1710
608
0
-63
942
April
-143.23
25
-202
652
0
212.78
-355.44
-436.14
25
-76
673
0
344.68
-664.06
-25
1609
1609
-25
-25
-25
917 -380.444575639 -689.060970095
1699 1318.555424361 629.494454266
-836
0
0
0
0
0
0
0
0
0
0
1115.32
917 -380.444575639 426.2590299048
May
Jun
-219.39
25
-176
803
0
113.02
-707.77
Jul
-220.99
25
-139
792
0
233.84
-615.55
Aug
-175.38
25
151
673
0
90.35
-884.43
Sep
-138.64
25
252
576
0
71.42
-870.22
Oct
503.18
25
1,814
-882
0
-139.21
-543.44
Nov
386.00
1241.92
25
25
1,386
1,928
-612
-2,534
0
0
-198.85 -639.774780821
-561.85
1233.74
-25
-25
-25
-25
-25
-25
-25
-732.771229983 -640.547334338 -909.432675687 -895.218344521 -568.436237619 -586.849217484 1208.740970184
1012.043224283 -640.547334338 -909.432675687 -895.218344521 -568.436237619 -586.849217484 1208.740970184
0
0
0
0
0
0 1208.740970184
0
50
0
0
0
0
0
1446.9
2605.14
3695.27
4733.32
5023.34
5212.49
3932.94
714.1287700173 1914.592665662 2785.837324313 3838.101655479 4454.903762381 4625.640782516
3932.94
Dec
0.00
25
718
-25
-25
3907.94
0
50
0
Jan
Feb
Mar
Apr
Operating Activities
Net income
Depreciation
Less: Increase (Decrease) in A/R
Less: Increase (Decrease) in Inventory
Add: Increase (Decrease) in A/P
Add: Increase (Decrease) in Accrued Taxes
-375
-514
-560
-584
25
25
25
25
-2,704
-1,710
-202
-76
-516
-24
-12
-45
-68
-214
-200
1,792
1,153
-571
-695
-25
-25
-25
-25
1,767
1,128
-596
-720
1,767
2,139
1,854
1,548
Financing Activities
Less: bank note repayment
826
-826
941
1,128
-596
-720
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
-727
-715
-585
-478
1,125
828
2,940
554
25
25
25
25
25
25
25
25
-176
-139
151
252
1,814
1,386
1,928
718
-71
65
53
802
-149
1,057
-719
-105
-223
-80
-61
99
167
536
165
-701
-768
-725
-713
237
-515
2,630
-693
-25
-25
-25
-25
-25
-25
-25
-25
-726
-793
-750
-738
212
-540
2,605
-718
1,251
981
696
387
958
-281
2,605
-718
706
50
50
281
768
-50
281
-706
718
-726
-843
-750
-738
212
-258
1,899
Jan
Feb
Mar
1,511
5,245
2,541
832
630
554
1,227
1,227
1,227
1,227
1,227
Current assets
6,972
5,280
5,009
4,625
4,259
Net PP&E
2,988
2,988
2,988
2,988
2,988
9,960
8,268
7,997
7,613
7,247
Accounts payablee
966
450
450
450
450
826
Accrued taxes
139
-55
-319
-747
-1,167
100
100
100
100
100
2,031
495
231
-197
-617
1,000
1,000
1,000
1,000
1,000
Total liabilities
3,031
1,495
1,231
803
383
Shareholders' equity
6,929
6,554
6,040
5,480
4,896
9,960
8,049
7,270
6,283
5,279
139
-55
-319
-747
-193
-265
-288
-301
-139
-120
-55
-319
-747
-1,167
Accounts receivable
Inventoryc
d
Total assets
2,950
Apr
500
2,768
2,477
Accrued Taxes
Beg. accrued taxes
Accrual of monthly taxes
Tax payments
End. accrued taxes
139
Assumed 60-day collection period for wholesale sales and instant collection for retail sales.
Assumed inventories maintained at December 31, 2011 level for all of 2012.
May
Jun
2,274
Jul
1,946
Aug
1,625
Sep
Oct
Nov
Dec
1,246
758
500
500
500
378
239
391
643
2,457
3,843
5,771
6,489
1,227
1,227
1,227
1,227
1,227
1,227
1,227
1,227
3,879
3,413
3,243
3,116
4,442
5,570
7,498
8,216
2,988
2,988
2,988
2,988
2,988
2,988
2,988
2,988
6,867
6,401
6,231
6,104
7,430
8,558
10,486
11,204
450
450
450
450
450
450
450
450
-1,542
-2,030
-2,331
-2,578
-2,118
-1,691
-177
478
100
100
100
100
100
100
100
100
-992
-1,480
-1,781
-2,028
-1,568
-1,141
373
1,028
1,000
950
950
950
950
950
950
900
-530
-831
-1,078
-618
-191
1,323
1,928
4,169
3,454
2,869
2,391
3,517
4,345
7,284
8,789
4,177
2,924
2,038
1,314
2,899
4,153
8,607
10,716
-1,167
-1,542
-2,030
-2,331
-2,578
-2,118
-1,691
-177
-374
-368
-301
-246
580
426
1,514
775
-120
-120
-120
-1,542
-2,030
-2,331
-2,578
-2,118
-1,691
-177
478
es that accounts for 50% of COGS for 2012. This represents a 30-day payment period. Since inventories are level, purchases will follow seasonal
12, payments of 25% of each of the estimated tax for 2012 are due. In estimating its tax liability for 2012, the company uses a tax liability of
remain same
need to build up with the production
no capex expenditure. Therefore
changes and is consistent (50% of production value per month i.e 900)
changes
no change
488
profits are different (therefore changes)
Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
OB
Sales
900
900
900
900
900
900
900
900
900
900
900
900
COGS
702
486
414
378
162
180
378
540
2970
2520
5724
3546
421.2
291.6
248.4
226.8
97.2
108
226.8
324
1782
1512
3434.4
2127.6
Inventory
FG change
FG beginning
478.8
608.4
651.6
673.2
802.8
792
673.2
576
-882
-612
-2534.4
-1227.6
1,706
2,314
2,966
3,639
4,442
5,234
5,907
6,483
5,601
4,989
2,455
1,227
46,962
Accrued tax
Accrued tax(end)
change
105
42
-170.78
-515.46
-628.48
-862.33
-952.67
-1024.09
-884.88
-686.03
-46.26
34
63
212.7848616163
344.6772807261
113.0194318566
233.844042734
90.3472179176
71.4194910533
-139.2114975295
-198.8477064237
-639.7747808208
-46.2583411299
% of inventory level
Additional storage costs
Operating expenses
3.6%
10896.92
370.90
4.9%
14783.46
374.78
6.3%
18945.97
378.95
7.7%
23246.46
383.25
9.5%
28374.85
388.37
11.1%
33434.25
393.43
12.6%
37734.74
397.73
13.8%
41414.31
401.41
11.9%
35779.98
395.78
10.6%
31870.44
391.87
5.2%
15680.35
375.68
2.6%
7838.28
367.84
802.8
792
673.2
576
-882
-612
-2534.4
-1227.6
total sales
COGS
Per month(production value)
addl storage costs
Income statement
NS
COGS
GP
OPE
Int expenses
addl interest
Int income
PBT
Tax
PAT
18000
10800
900
300 (year)
Jan
Feb
702
486
421
291.6
281
194.4
371
374.78
11
7
0
0
1
2
-100
-185.72
-34 -63.14371
-66
-122.57
4441.81
5233.81
5907.01
6483.01
5601.01
4989.01
2454.61
1227.01
Balance sheet
Cash
Accounts receivable
Inventory
Current assets
Net PP&Ed
Total assets
Accounts payablee
Notes payable, bank
Accrued taxesf
Long-term debt, current portion
Current Liabilities
Long-term debtg
Total liabilities
Shareholders' equity
Total liabilities and equity
Extra
Income statement
NS
COGS
GP
OPE
Int expenses
addl interest
Int income
PBT
Tax
PAT
Jan
dec
jan
Feb
702
486
421
291.6
281
194.4
371
374.78
11
7
0
0
1 2.13666667
-100
-185.72
-34 -63.1437089
-66
-122.57
feb
500
5245.041513348
1227.0059685
6972.047481848
2988
9960.047481848
1282
2541
1706
5529
2988
8517
2199
832
2314
5345
2988
8333
966.3899007906
825.8486371586
138.6595305444
100
2030.8980684936
1000
3030.8980684936
6929.1494133544
9960.047481848
450
0
105
100
655
1000
1655
6863
8517
450
0
42
100
592.00
1000
1592
6740
8332
Mar
Apr
414
248.4
165.6
378.95
7
0
3.7
-217.01
-73.7848616
-143.23
mar
May
378
651.6
-273.6
383.25
7.00
0
3.0
-660.82
-224.6772807261
-436.14
April
jun
162
180
97.2
64.8
388.37
7
5.5766
3.7
-332.41
-113.0194318566
-219.39
108
72
393.43
7
7.2345
0.8
-334.84
-113.844042734
-220.99
May
June
1819
630
2966
5415
2988
8403
2245
554
3639
6437.81
2988
9425.81
500
378.0
4441.81
5319.81
2988
8307.81
500
239.4
5233.81
5973.21
2988
8961.21
450
0
-171
100
379
1000
1379
6597
7976
450
1115.32
-515.46
100
1150
1000
2150
6160.63
8310.49
450
1446.9
-628.48
100
1368
1000
2368
5941.24
8309.66
450
2605.14
-862.33
100
2293
950
3243
5720.25
8963.06
-1115.32
1.85
1.86
1.86
2603.28
jul
aug
sep
378
540
oct
2,970
nov
2,520
5,724
226.8
324
1782
1512
3434.4
151.2
216
1188
1008
2289.6
397.73
401.41
395.78
391.87
375.68
7
7
7
7
7
13.0257
18.47635
23.6666
25.1167
26.06245
0.8
0.8
0.8
0.8
0.8
-265.73
-210.06
762.39
584.85
1881.69
-90.34721792 -71.41949105 259.21149753 198.84770642 639.77478082
-175.38
-138.64
503.18
386.00
1241.92
July
August
500.00
390.6
5907.01
6797.61
2988
9785.61
September
October
November
500.00
500.00
500.00
4432.94
642.6
2457.0
3843.0
5770.8
6483.01
5601.01
4989.01
2454.61
7625.61
8558.01
9332.01
12658.35
2988
2988
2988
2988
10613.61
11546.01
12320.01
15646.35
450
3695.27
-952.67
100
3293
950
4243
5544.87
9787.47
450
4733.32
-1024.09
100
4259
950
5209
5406.23
10615.46
450
5023.34
-884.88
100
4688
950
5638
5909.41
11547.87
450
450
5212.49
3932.94
-686.033122 -46.25834113
100
100
5076
4437
950
950
6026
5387
6295.41
7537.32
12321.86
12924.00
1.86
1.85
1.86
-2722.34
3693.41
4731.47
1.85
5021.48
1.86
1.86
dec
3,546
2127.6
1418.4
367.84
7
December
6489.0
1227.01
7716.01
2988
10704.01
450
0
100
550
900
1450
7537.32
8987.32