Perimal Ltd Income Satement for the year ending on Dec 31,2021

Particular
Revenue :
Equipment (Rs 6,00,000 x 1.10 (10% inc in sp) x 1.06 (inc 6% in unit)
Maintainance contract ( 180000 x 1.06 (increase in unit sold)
Total Revenue

Less: Cost of Goods Sold [460000 x 1.06 (inc in unit) x 1.03

(inc in
raw material cost)]
Gross Margin

Operating Cost

Marketing [60000 + 25000]

Distribution [15000 x 1.06 (6% inc in units sold)]
Customer Mainatainance [100000 x 1.06 (6% inc in
units sold)+ 13000]
Administration
Less: Total Operating Cost

Operating Income
year ending on Dec 31,2021

(Rs) (Rs)

660000
190800
890400

502228
388172

85000
15900

119000
90000
309900

78272
 Working Note 1:

Sales Budget(Projected sales in units and Rupess)

May June July August September

Sales in
Units
Number
snow
boards 80 120 200 100 60

Revenues
@ Rs
1000/-
per
snowboar
d 80000 120000 200000 100000 60000
d Rupess)

Oct

40 1000

40000
 Working Note 2:
Productio Budgets IN UNITS

April May June July August

Budgeted
Productio 80 120 200 100 60
n
(snow
boards)
UNITS

September

40
 Working Note 3:
Collection of Receivables Budget
Amount in Rs

Particular May June July

Sales done
in may 16000 40000 24000
[Rs8000:20%,50%,30%

Sales done
in june [Rs12000: 24000 60000
20% ,50%,30%

Sales done
in july[Rs 40000
200000:20%,50%,30%]

Sales done
in August[Rs
100000::20%,50%,30%

Sales done
in September[Rs
60000:20%,50%,30%]

Sales done
in October[Rs
40000:20%,50%,30%
Total 16000 64000 124000
Working Note 3:
of Receivables Budget
Amount in Rs

August September October

36000

100000 60000

20000 50000 30000

12000 30000

80000

156000 122000 140000 0

 Working Note4 :
Material and Labour usage Budget

April May June July Aug Sept

Budget production 80 120 200 100 60 40
Direct material

Wood (board feet)

400 600 1000 500 300 200
@ 5 bf per unit

Fiberglass
@6 yards per 480 720 1200 600 360 240
snowboard

Direct
Manufacturing
Labour @ 5 Labours 400 600 1000 500 300 200
hrs per snow board
(hours)
Oct

5
 Working Note 5 :
Payable Disbursement Budget

Disbursement of Payments July

(Rs)
Direct Material

Wood [1000 board ft,500board ft,300board ft]

60000
@Rs 60 per board feet

Fiberglass [1200yards,600yards,360yards] 12000

@Rs 10/- per yard

Direct Manufacturing Labour[500hrs

300hrs,200hrs] 12500

Interest Payments[100000
1000
@12%p.a to be paid on monthly basis

Variable Overhead Calculations

Variable Overhead Rate 14
OHD Driver 500
Variable Overhead Expense 7000

Fixed Manufacturing Overheads

[Rs 192000/12 units= Rs 16,000 per unit 16000

Total Disbursements 108500

 Working Note 5 :
ayable Disbursement Budget

August September
(Rs) (Rs)

30000 18000

6000 3600

7500 5000

1000 1000

14 14
300 200
4200 2800

16000 16000

64700 46400
 Cash Budget for the month of July, August , September 2007

July August September

(Rs) (Rs) (Rs)
Beginning Cash Balance 10000 25500 116800
ADD - Collection of Recievables 124000 156000 122000
Total Cash Availaible 134000 181500 238800
Less- Disbursement
Wood 60000 30000 18000
Fibre glass 12000 6000 3600
Direct Manufacturing labour 12500 7500 5000
Interest Payments 1000 1000 1000
Variable Overheads 7000 4200 2800
Fixed Overheads 16000 16000 16000
Total Disbursenments 108500 64700 46400
Ending Cash Balance 25500 116800 192400

JK Woods ltd has cash bal of rs 192000 at theend of sept 2007. Thus the compamy has usffe
MANGERIAL REMARK
which itha sborrowed on sept 1 2006 after making the payment of the borrowed amoun
hus the compamy has usffeceient cash at hands in order to pay ff 12% 1 yearnote of Rs 1,00,000
nt of the borrowed amount company will have at its disposal amt of rs 92,400 as suplus cash