Gilbert Manufacturing Company

Summary of Cash Budget

Year 1 Year 2 Year 3 Year 4 Year 5
Cash Balance, January 1, 2018 150,000 143,065 632,649 1,128,873 946,737
Add: Estimated Receipts 0 0 0 0 0
Collection from Customers 5,185,000 5,185,000 5,185,000 4,500,000 4,500,000
Sales of Assets 25,000 0 0 0 0
Total 5,210,000 5,185,000 5,185,000 4,500,000 4,500,000
Total Cash Available 5,360,000 5,328,065 5,817,649 5,628,873 5,446,737
Less: Estimated Disbursements 0 0 0 0 0
Payments for materials purchases 1,164,000 1,137,000 1,137,000 1,137,000 1,137,000
Direct Labor 949,000 934,400 934,400 934,400 934,400
Manufacturing Overhead 850,935 848,936 848,936 848,936 848,936
Marketing & Administrative Expenses 1,458,000 1,452,080 1,445,440 1,438,800 1,432,160
Payments for Income Tax 252,000 100,000 100,000 100,000 100,000
Dividends 140,000 140,000 140,000 140,000 140,000
Reduction in Long-term Debt 83,000 83,000 83,000 83,000 83,000
Acquisition of New Assets 320,000 0 0 0 0
Total Disbursements 5,216,935 4,695,416 4,688,776 4,682,136 4,675,496
Cash Balance, December 31 143,065 632,649 1,128,873 946,737 771,241
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t
Year 6 Year 7 Year 8 Year 9 Year 10
771,241 602,385 440,169 289,593 223,257
0 0 0 0 0
4,500,000 4,500,000 4,500,000 4,500,000 4,500,000
0 0 0 0 0
4,500,000 4,500,000 4,500,000 4,500,000 4,500,000
5,271,241 5,102,385 4,940,169 4,789,593 4,723,257
0 0 0 0 0
1,137,000 1,137,000 1,137,000 1,137,000 1,137,000
934,400 934,400 934,400 934,400 934,400
848,936 848,936 848,936 848,936 848,936
1,425,520 1,418,880 1,412,240 1,406,000 1,406,000
100,000 100,000 100,000 100,000 100,000
140,000 140,000 140,000 140,000 140,000
83,000 83,000 78,000 0 0
0 0 0 0 0
4,668,856 4,662,216 4,650,576 4,566,336 4,566,336
602,385 440,169 289,593 223,257 156,921
 Gilbert Manufacturing Company
Summary of Income Statement
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Sales 5,120,000 5,120,000 5,120,000 5,120,000 5,120,000 5,120,000
Less: Cost of Sales 3,199,935 3,279,336 3,279,336 3,279,336 3,103,336 2,999,336
Gross Profit 1,920,065 1,840,664 1,840,664 1,840,664 2,016,664 2,120,664
Less: Marketing and Administrative Cost 1,499,280 1,500,000 1,500,000 1,500,000 1,406,000 1,406,000
Net Operating Profit 420,785 340,664 340,664 340,664 610,664 714,664
Less: Interest Expense 52,720 46,080 39,440 32,800 26,160 19,520
Net Income before Taxes 368,065 294,584 301,224 307,864 584,504 695,144
Less: Provision for Income Taxes 128,823 103,104 105,428 107,752 204,576 243,300
Net Income after Taxes 239,242 191,480 195,796 200,112 379,928 451,844
 Year 7 Year 8 Year 9 Year 10
5,120,000 5,120,000 5,120,000 5,120,000
2,935,336 2,935,336 2,935,336 2,935,336
2,184,664 2,184,664 2,184,664 2,184,664
1,406,000 1,406,000 1,406,000 1,406,000
778,664 778,664 778,664 778,664
12,880 6,240 0 0
765,784 772,424 778,664 778,664
268,024 270,348 272,532 272,532
497,760 502,076 506,132 506,132
 Gilbert Manufacturing Company
Summary of Income Statement
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Current Assets
Cash 143,065 632,649 1,128,873 946,737 771,241 602,385 440,169
Accounts Receivable 155,000 90,000 25,000 645,000 1,265,000 1,885,000 2,505,000
Inventories 651,000 651,000 651,000 651,000 651,000 651,000 651,000
Other Current Assets 23,000 23,000 23,000 23,000 23,000 23,000 23,000
Total Current Assets 972,065 1,396,649 1,827,873 2,265,737 2,710,241 3,161,385 3,619,169
Long-term Assets
Property, Plant and Equipment 2,495,000 2,495,000 2,495,000 2,495,000 2,495,000 2,495,000 2,495,000
Less: Accumulated Depreciation 949,000 1,387,000 1,825,000 2,263,000 2,431,000 2,495,000 2,495,000
Net 1,546,000 1,108,000 670,000 232,000 64,000 0 0
Total Assets 2,518,065 2,504,649 2,497,873 2,497,737 2,774,241 3,161,385 3,619,169

LIabilities and Equities

Current Liabilities
Accounts Payable 155,000 170,000 185,000 200,000 215,000 230,000 245,000
Taxes Payable 32,823 35,927 41,356 49,108 153,684 296,985 465,009
Current portion of Long-term Debt 0 83,000 83,000 83,000 83,000 83,000 78,000
Total Current Liabilities 187,823 288,927 309,356 332,108 451,684 609,985 788,009
Long-Term Liabilities 576,000 410,000 327,000 244,000 161,000 78,000 0
Total Liabilities 763,823 698,927 636,356 576,108 612,684 687,985 788,009

Equity
Share Capital 350,000 350,000 350,000 350,000 350,000 350,000 350,000
Retained Earnings 1,404,242 1,455,722 1,511,517 1,571,629 1,811,557 2,123,400 2,481,160
Total Equity 1,754,242 1,805,722 1,861,517 1,921,629 2,161,557 2,473,400 2,831,160
0 0 0 0 0 0
Total Liabilities and Equity 2,518,065 2,504,649 2,497,873 2,497,737 2,774,241 3,161,385 3,619,169
 Year 8 Year 9 Year 10

289,593 223,257 156,921

3,125,000 3,745,000 4,365,000
651,000 651,000 651,000
23,000 23,000 23,000
4,088,593 4,642,257 5,195,921

2,495,000 2,495,000 2,495,000

2,495,000 2,495,000 2,495,000
0 0 0
4,088,593 4,642,257 5,195,921

260,000 275,000 290,000

635,358 807,890 980,422
0 0 0
895,358 1,082,890 1,270,422
0 0 0
895,358 1,082,890 1,270,422

350,000 350,000 350,000

2,843,235 3,209,367 3,575,499
3,193,235 3,559,367 3,925,499
0 0 0
4,088,593 4,642,257 5,195,921