Budget Assignment Instructions

The green tabs are the budget information provided by the firm to prepare the budget.

Requirements:

1. Use the information in the green tabs to complete the following component budget schedules (Orange tabs):
A Revenue Budget
B Direct Material Budget
C Direct Labour Budget
D Variable Overhead Budget
E Fixed Overhead Budget
F Selling Admin Budget
G Transport Budget
H Cash Receipts and Payments

2. Use the above component budgets to complete the financial budgets (Purple tabs):
Cash budget
Segmented income statements
Corporate balance sheet
Indirect Statement of Cash Flows

Input fields are coloured, please enter your answers in these fields only
Expected Selling Prices

Price
Product (per case)
Sunset Pale Ale $30.00
Premium Ale $32.00
Three Lion Lager $36.00
Black Swan Lager $22.00

• Each case contains a total of 24 bottles of beer

Expected Sales Demand (in cases)

Product Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020
Sunset Pale Ale 10,140 16,010 11,840 7,440 15,470 21,820 22,800 23,600 16,830 16,300 14,770
Premium Ale 9,880 12,090 11,050 10,030 15,800 17,130 12,990 13,550 14,430 15,300 10,160
Three Lion Lager 20,700 21,060 19,050 22,910 25,210 21,780 27,410 23,570 21,300 15,710 17,110
Black Swan Lager 21,810 32,120 35,410 40,150 36,170 42,600 44,920 36,600 34,400 31,460 29,690
Total Cases 62,530 81,280 77,350 80,530 92,650 103,330 108,120 97,320 86,960 78,770 71,730

Total Cases 1,022,990

Bottles per case 24
Litres per bottle 0.355
Total litres produced 8,715,875
Dec 2020 Total
15,500 192,520
12,680 155,090
18,270 254,080
35,970 421,300
82,420 1,022,990
Direct Material (DM) Cost Breakdown per Bottle of Beer

Sunset Pale Ale

Water 450 mL at 0.04 per litre $ 0.01800
Barley malt (hops) 58 grams at 2.19 per kilogram 0.12702
Wheat grain 25 grams at 2.19 per kilogram 0.05475
Yeast 26 grams at 1.99 per kilogram 0.05174
Bottle/cap/label 1 bottle at 0.55 per bottle 0.55000
DM cost/bottle of beer $ 0.80151

Premium Ale
Water 438 mL at 0.03 per litre $ 0.01314
Barley malt (hops) 58 grams at 1.89 per kilogram 0.10962
Wheat grain 25 grams at 1.89 per kilogram 0.04725
Yeast 26 grams at 2.05 per kilogram 0.05330
Bottle/cap/label 1 bottle at 0.55 per bottle 0.55000
DM cost/bottle of beer $ 0.77331

Three Lion Lager

Water 402 mL at 0.03 per litre $ 0.01206
Barley malt (hops) 44 grams at 1.84 per kilogram 0.08096
Wheat grain 20 grams at 1.84 per kilogram 0.03680
Yeast 26 grams at 2.08 per kilogram 0.05408
Bottle/cap/label 1 bottle at 0.55 per bottle 0.55000
DM cost/bottle of beer $ 0.73390

Black Swan Lager

Water 464 mL at 0.04 per litre $ 0.01856
Barley malt (hops) 46 grams at 2.25 per kilogram 0.10350
Wheat grain 21 grams at 2.25 per kilogram 0.04725
Yeast 26 grams at 2.05 per kilogram 0.05330
Bottle/cap/label 1 bottle at 0.55 per bottle 0.55000
DM cost/bottle of beer $ 0.77261
*Despite 355ml of beer in a bottle, more water is required for direct input due to evaporation.
Direct Labour per Bottle of Beer (in minutes)

Product Direct Labour per bottle

Sunset Pale Ale 0.64 minutes
Premium Ale 0.60 minutes
Three Lion Lager 0.60 minutes
Black Swan Lager 0.61 minutes

• The wage rate for production employees is $14.00 per hour, all inclusive (i.e., vacation pay, EI premiums, etc.)
Other information related to the budget

* Opening cash balance is $1.2 million.

* Cash from sales is collected 50% in the month the sale occurs and 50% in the following month.

* Account Receivable has a balance of $899,528 at the end of 2019

* Account Payable has a balance of $794,360 at the end of 2019

• Not including the costs below, variable overhead costs (including plant utilities) are allocated at $5.00 per direct labour hour. These costs are paid 100% in the mont

• Fixed overhead cost includes the following and are allocated based on direct labour hours.

Fixed Overhead Costs Annual Costs

Brewmaster $ 200,000
Plant manager 140,000
Production supervisors 240,000
Maintenance/repairs 400,000
Equipment amortization 800,000
Property taxes - plant 120,000
Plant/Building amortization 300,000
Insurance - plant 50,000
$ 2,250,000

• Inventory at the end of 2019 was $205,000, and the company plans to sell everything they make during the year and maitain an inventory of $205,000 at end of 2020

• Property, plant and equipment had a net ending balance of $2,300,000 at the end of 2019.

• Land has a ending balance of $600,000 at the end of 2019 and there is no plan to sell or buy more.

• Administrative salaries are provided below:

Role Category Annual salary (all inclusive)
President and CEO Admin salaries $ 250,000
CFO Admin salaries $ 115,000
COO Admin salaries $ 115,000
 VP sales and marketing Admin salaries $ 115,000
Director, IT Admin salaries $ 100,000
Marketing coordinator Admin salaries $ 40,000
Office administrator Admin salaries $ 32,000
HR generalist Admin salaries $ 65,000
• Administrative salaries are paid in the month incurred.

• Sales commissions are 1.25% of gross sales and transport costs are $1.05 per case. These costs are paid 100% in the month after incurring the expense. Commiss

• Other administrative expenses include (monthly cash expenses):

Office admin
Telephone $ 3,500 per month
Lease on photocopiers $ 1,000 per month
Lease on office furniture $ 1,500 per month
Insurance (non-plant) $ 8,000 per year *
Property taxes (non-plant) $ 15,000 per year *
Utilities (non-plant) $ 12,000 per year *
Professional fees $ 60,000 per year *
Marketing and advertising $ 75,000 per year *

* Paid evenly over 12 months

• Direct material purchases are paid for 40% in the month of purchase and 60% in the month after purchase. In December 2019, the total purchase amount is $1,032,6

• Direct labour costs are paid 100% in the month they are incurred.

• To start the business, the owner invested $3.6 million of his personal funds in the company for common shares, while three other shareholders invested $200,000 ea

• The retained earning at the end of 2019 was $210,167.8

• The income tax rate is 30%. Any tax liability will be paid for in full in February 2021. There are no previous tax liabilities.

• A dividend of $50,000 will be paid out in cash in December

hese costs are paid 100% in the month after incurring the expense. Variable overhead costs were $75,365 for December 2019.

n inventory of $205,000 at end of 2020.

after incurring the expense. Commission in December 2019 was $22,488.20, and transport in December 2019 was $76,890.

the total purchase amount is $1,032,695.

er shareholders invested $200,000 each in common shares. There are no planned change to common shares in 2020.
Schedule A - Revenue Budget

Product Selling price Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020
Sunset Pale Ale 30.00 $ 304,200 $ 480,300 $ 355,200 $ 223,200 $ 464,100 $ 654,600 $ 684,000
Premium Ale 32.00 $ 316,160 $ 386,880 $ 353,600 $ 320,960 $ 505,600 $ 548,160 $ 415,680
Three Lion Lager 36.00 $ 745,200 $ 758,160 $ 685,800 $ 824,760 $ 907,560 $ 784,080 $ 986,760
Black Swan Lager 22.00 $ 479,820 $ 706,640 $ 779,020 $ 883,300 $ 795,740 $ 937,200 $ 988,240
Total $ 1,845,380 $ 2,331,980 $ 2,173,620 $ 2,252,220 $ 2,673,000 $ 2,924,040 $ 3,074,680
 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Total
$ 708,000 $ 504,900 $ 489,000 $ 443,100 $ 465,000 $ 5,775,600
$ 433,600 $ 461,760 $ 489,600 $ 325,120 $ 405,760 $ 4,962,880
$ 848,520 $ 766,800 $ 565,560 $ 615,960 $ 657,720 $ 9,146,880
$ 805,200 $ 756,800 $ 692,120 $ 653,180 $ 791,340 $ 9,268,600
$ 2,795,320 $ 2,490,260 $ 2,236,280 $ 2,037,360 $ 2,319,820 $ 29,153,960
Schedule B - Direct Materials (DM) Budget

Product DM Cost per Bottle Bottles per Case DM Cost per Case Jan 2020 Feb 2020 Mar 2020 Apr 2020
Sunset Pale Ale 0.8015 24 19.24 $ 195,055 $ 307,972 $ 227,757 $ 143,118
Premium Ale 0.7733 24 18.56 $ 183,367 $ 224,384 $ 205,082 $ 186,151
Three Lion Lager 0.7339 24 17.61 $ 364,602 $ 370,942 $ 335,539 $ 403,528
Black Swan Lager 0.7726 24 18.54 $ 404,415 $ 595,590 $ 656,595 $ 744,487
Total $ 1,147,439 $ 1,498,888 $ 1,424,973 $ 1,477,283
 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Total DM cost
$ 297,585 $ 419,735 $ 438,586 $ 453,975 $ 323,746 $ 313,551 $ 284,119 $ 298,162 $ 3,703,361
$ 293,239 $ 317,923 $ 241,087 $ 251,480 $ 267,813 $ 283,959 $ 188,564 $ 235,334 $ 2,878,384
$ 444,039 $ 383,624 $ 482,789 $ 415,153 $ 375,170 $ 276,710 $ 301,369 $ 321,800 $ 4,475,263
$ 670,687 $ 789,916 $ 832,935 $ 678,661 $ 637,867 $ 583,351 $ 550,531 $ 666,979 $ 7,812,014
$ 1,705,550 $ 1,911,199 $ 1,995,398 $ 1,799,269 $ 1,604,595 $ 1,457,571 $ 1,324,583 $ 1,522,275 $ 18,869,022
Schedule C - Direct Labour (DL) Hours and Direct Labour Cost Budgets

2020 T
Product Min per bottle Bottles per case Min per case Hours per case Jan 2020 Feb 2020 Mar 2020 Apr 2020
Sunset Pale Ale 0.64 24 15.36 0.2560 2,596 4,099 3,031 1,905
Premium Ale 0.60 24 14.40 0.2400 2,371 2,902 2,652 2,407
Three Lion Lager 0.60 24 14.40 0.2400 4,968 5,054 4,572 5,498
Black Swan Lager 0.61 24 14.64 0.2440 5,322 7,837 8,640 9,797
Total 15,257 19,892 18,895 19,607

2020 Total Direct Labour Cost

Product Hourly rate Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020
Sunset Pale Ale 14.00 $ 36,342 $ 57,380 $ 42,435 $ 26,665 $ 55,444 $ 78,203 $ 81,715
Premium Ale 14.00 $ 33,197 $ 40,622 $ 37,128 $ 33,701 $ 53,088 $ 57,557 $ 43,646
Three Lion Lager 14.00 $ 69,552 $ 70,762 $ 64,008 $ 76,978 $ 84,706 $ 73,181 $ 92,098
Black Swan Lager 14.00 $ 74,503 $ 109,722 $ 120,961 $ 137,152 $ 123,557 $ 145,522 $ 153,447
Total $ 213,594 $ 278,486 $ 264,531 $ 274,496 $ 316,795 $ 354,462 $ 370,906
 2020 Total Hours Required
May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Total DL hours
3,960 5,586 5,837 6,042 4,308 4,173 3,781 3,968 49,285
3,792 4,111 3,118 3,252 3,463 3,672 2,438 3,043 37,222
6,050 5,227 6,578 5,657 5,112 3,770 4,106 4,385 60,979
8,825 10,394 10,960 8,930 8,394 7,676 7,244 8,777 102,797
22,628 25,319 26,493 23,881 21,277 19,291 17,570 20,173 250,283

r Cost
Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Total DL cost
$ 84,582 $ 60,319 $ 58,419 $ 52,936 $ 55,552 $ 689,992
$ 45,528 $ 48,485 $ 51,408 $ 34,138 $ 42,605 $ 521,102
$ 79,195 $ 71,568 $ 52,786 $ 57,490 $ 61,387 $ 853,709
$ 125,026 $ 117,510 $ 107,467 $ 101,421 $ 122,874 $ 1,439,161
$ 334,331 $ 297,882 $ 270,080 $ 245,984 $ 282,418 $ 3,503,964
Schedule D - Variable Overhead (VOH) Cost Budget

VOH Cost per direct labour hour 5.00

Product Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020
Sunset Pale Ale $ 12,979 $ 20,493 $ 15,155 $ 9,523 $ 19,802 $ 27,930 $ 29,184 $ 30,208 $ 21,542 $ 20,864
Premium Ale 11,856 14,508 13,260 12,036 18,960 20,556 15,588 16,260 17,316 18,360
Three Lion Lager 24,840 25,272 22,860 27,492 30,252 26,136 32,892 28,284 25,560 18,852
Black Swan Lager 26,608 39,186 43,200 48,983 44,127 51,972 54,802 44,652 41,968 38,381
Total $ 76,283 $ 99,459 $ 94,475 $ 98,034 $113,141 $ 126,594 $ 132,466 $119,404 $106,386 $ 96,457
Nov 2020 Dec 2020 Total VOH costs
$ 18,906 $ 19,840 $ 246,426
12,192 15,216 186,108
20,532 21,924 304,896
36,222 43,883 513,986
$ 87,851 $100,863 $ 1,251,416
Schedule E - Fixed Overhead (FOH) Cost Budget

Total FOH 2,250,000

Non-cash FOH 1,100,000
Cash FOH 1,150,000

Total direct labour hour 250,283

Cash FOH per direct labour hour 4.59

Product Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020
Sunset Pale Ale $ 11,927 $ 18,832 $ 13,927 $ 8,751 $ 18,197 $ 25,666 $ 26,819 $ 27,760 $ 19,797 $ 19,173
Premium Ale $ 10,895 $ 13,332 $ 12,185 $ 11,061 $ 17,423 $ 18,890 $ 14,325 $ 14,942 $ 15,913 $ 16,872
Three Lion Lager $ 22,827 $ 23,224 $ 21,007 $ 25,264 $ 27,800 $ 24,018 $ 30,226 $ 25,992 $ 23,489 $ 17,324
Black Swan Lager $ 24,452 $ 36,011 $ 39,699 $ 45,013 $ 40,551 $ 47,760 $ 50,361 $ 41,033 $ 38,567 $ 35,271
Total $ 70,101 $ 91,399 $ 86,819 $ 90,089 $103,972 $ 116,334 $ 121,731 $109,727 $ 97,765 $ 88,640

Non-cash FOH per direct labour hour 4.40

Product Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020
Sunset Pale Ale $ 11,409 $ 18,013 $ 13,321 $ 8,371 $ 17,406 $ 24,550 $ 25,653 $ 26,553 $ 18,936 $ 18,340
Premium Ale $ 10,421 $ 12,753 $ 11,656 $ 10,580 $ 16,666 $ 18,069 $ 13,702 $ 14,293 $ 15,221 $ 16,139
Three Lion Lager $ 21,834 $ 22,214 $ 20,094 $ 24,166 $ 26,592 $ 22,974 $ 28,912 $ 24,862 $ 22,467 $ 16,571
Black Swan Lager $ 23,389 $ 34,445 $ 37,973 $ 43,056 $ 38,788 $ 45,684 $ 48,172 $ 39,249 $ 36,890 $ 33,737
Total $ 67,053 $ 87,425 $ 83,044 $ 86,173 $ 99,451 $ 111,276 $ 116,439 $104,957 $ 93,514 $ 84,786

Product Total Annual FOH by Product

Sunset Pale Ale $ 443,064
Premium Ale $ 334,615
Three Lion Lager $ 548,192
Black Swan Lager $ 924,128
Total $ 2,250,000
Nov 2020 Dec 2020 Total Cash FOH
$ 17,373 $ 18,232 $ 226,455
$ 11,204 $ 13,983 $ 171,026
$ 18,868 $ 20,147 $ 280,187
$ 33,286 $ 40,327 $ 472,332
$ 80,732 $ 92,689 $ 1,150,000

Nov 2020 Dec 2020 Total Non-cash FOH

$ 16,618 $ 17,439 $ 216,609
$ 10,717 $ 13,375 $ 163,590
$ 18,048 $ 19,271 $ 268,005
$ 31,839 $ 38,574 $ 451,796
$ 77,222 $ 88,659 $ 1,100,000
Schedule F - Selling and Administrative Expenses Budget

Admin Salaries Category Annual Cost Monthly Cost

President and CEO Admin salaries $ 250,000 $ 20,833
CFO Admin salaries $ 115,000 $ 9,583
COO Admin salaries $ 115,000 $ 9,583
VP sales and marketing Admin salaries $ 115,000 $ 9,583
Director, IT Admin salaries $ 100,000 $ 8,333
Marketing coordinator Admin salaries $ 40,000 $ 3,333
Office administrator Admin salaries $ 32,000 $ 2,667
HR generalist Admin salaries $ 65,000 $ 5,417
Total admin salaries $ 832,000 $ 69,333

Office admin Category Annual Cost Monthly

Telephone Office admin $ 42,000 $ 3,500
Lease on photocopiers Office admin $ 12,000 $ 1,000
Lease on office furniture Office admin $ 18,000 $ 1,500
Insurance (non-plant) Office admin $ 8,000 $ 667
Property taxes (non-plant) Office admin $ 15,000 $ 1,250
Utilities (non-plant) Office admin $ 12,000 $ 1,000
Professional fees Office admin $ 60,000 $ 5,000
Marketing and advertising Office admin $ 75,000 $ 6,250
Total office admin $ 242,000 $ 20,167

Commission rate Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020
Sales commissions 1.25% $ 23,067 $ 29,150 $ 27,170 $ 28,153 $ 33,413 $ 36,551
 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Total commission
$ 38,434 $ 34,942 $ 31,128 $ 27,953.50 $ 25,467 $ 28,998 $ 364,425
Schedule G - Transport Cost Budget

Transport cost per case 1.05

Product Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020
Sunset Pale Ale $ 10,647 $ 16,811 $ 12,432 $ 7,812 $ 16,244 $ 22,911 $ 23,940 $ 24,780 $ 17,672
Premium Ale $ 10,374 $ 12,695 $ 11,603 $ 10,532 $ 16,590 $ 17,987 $ 13,640 $ 14,228 $ 15,152
Three Lion Lager $ 21,735 $ 22,113 $ 20,003 $ 24,056 $ 26,471 $ 22,869 $ 28,781 $ 24,749 $ 22,365
Black Swan Lager $ 22,901 $ 33,726 $ 37,181 $ 42,158 $ 37,979 $ 44,730 $ 47,166 $ 38,430 $ 36,120
Total $ 65,657 $ 85,344 $ 81,218 $ 84,557 $ 97,283 $ 108,497 $ 113,526 $ 102,186 $ 91,308
 Oct 2020 Nov 2020 Dec 2020 Total Transport Costs
$ 17,115 $ 15,509 $ 16,275 $ 202,146
$ 16,065 $ 10,668 $ 13,314 $ 162,845
$ 16,496 $ 17,966 $ 19,184 $ 266,784
$ 33,033 $ 31,175 $ 37,769 $ 442,365
$ 82,709 $ 75,317 $ 86,541 $ 1,074,140
Schedule H - Cash Receipts and Payments Budget

Allocation % Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020
Cash receipts
Cash current month 50% $ 922,690 $ 1,165,990 $ 1,086,810 $ 1,126,110 $ 1,336,500 $ 1,462,020 $ 1,537,340
Cash previous month 50% 899,528 922,690 1,165,990 1,086,810 1,126,110 1,336,500 1,462,020
Total cash collected $ 1,822,218 $ 2,088,680 $ 2,252,800 $ 2,212,920 $ 2,462,610 $ 2,798,520 $ 2,999,360

DM purchases
Cash current month 40% $ 458,976 $ 599,555 $ 569,989 $ 590,913 $ 682,220 $ 764,479 $ 798,159
Cash previous month 60% 619,617 688,464 899,333 854,984 886,370 1,023,330 1,146,719
Total cash payments $ 1,078,593 $ 1,288,019 $ 1,469,322 $ 1,445,897 $ 1,568,590 $ 1,787,809 $ 1,944,878

VOH costs
Cash current month 0%
Cash previous month 100% 75,365 76,283 99,459 94,475 98,034 113,141 126,594
Total cash payments $ 75,365 $ 76,283 $ 99,459 $ 94,475 $ 98,034 $ 113,141 $ 126,594

Commissions
Cash current month 0% $ - $ - $ - $ - $ - $ - $ -
Cash previous month 100% 22,488 23,067 29,150 27,170 28,153 33,413 36,551
Total cash payments $ 22,488 $ 23,067 $ 29,150 $ 27,170 $ 28,153 $ 33,413 $ 36,551

Transport
Cash current month 0% $ - $ - $ - $ - $ - $ - $ -
Cash previous month 100% 76,890 65,657 85,344 81,218 84,557 97,283 108,497
Total cash payments $ 76,890 $ 65,657 $ 85,344 $ 81,218 $ 84,557 $ 97,283 $ 108,497
 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Jan 2021

$ 1,397,660 $ 1,245,130 $ 1,118,140 $ 1,018,680 $ 1,159,910

1,537,340 1,397,660 1,245,130 1,118,140 1,018,680 1,159,910
$ 2,935,000 $ 2,642,790 $ 2,363,270 $ 2,136,820 $ 2,178,590 $ 1,159,910

$ 719,708 $ 641,838 $ 583,029 $ 529,833 $ 608,910

1,197,239 1,079,561 962,757 874,543 794,750 913,365
$ 1,916,946 $ 1,721,399 $ 1,545,786 $ 1,404,376 $ 1,403,660 $ 913,365

132,466 119,404 106,386 96,457 87,851 100,863

$ 132,466 $ 119,404 $ 106,386 $ 96,457 $ 87,851 $ 100,863

$ - $ - $ - $ - $ - $ -
38,434 34,942 31,128 27,954 25,467 28,998
$ 38,434 $ 34,942 $ 31,128 $ 27,954 $ 25,467 $ 28,998

$ - $ - $ - $ - $ - $ -
113,526 102,186 91,308 82,709 75,317 86,541
$ 113,526 $ 102,186 $ 91,308 $ 82,709 $ 75,317 $ 86,541
Cash Budget

Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020
Cash Inflows
Cash receipts $ 1,822,218 $ 2,088,680 $ 2,252,800 $ 2,212,920 $ 2,462,610 $ 2,798,520 $ 2,999,360

Cash outflows
Direct materials 1,078,593 1,288,019 1,469,322 1,445,897 1,568,590 1,787,809 1,944,878
Direct labour 213,594 278,486 264,531 274,496 316,795 354,462 370,906
Variable overhead 75,365 76,283 99,459 94,475 98,034 113,141 126,594
Commissions 22,488 23,067 29,150 27,170 28,153 33,413 36,551
Transport 76,890 65,657 85,344 81,218 84,557 97,283 108,497
Fixed overhead 70,101 91,399 86,819 90,089 103,972 116,334 121,731
Administrative salaries 69,333 69,333 69,333 69,333 69,333 69,333 69,333
Office 20,167 20,167 20,167 20,167 20,167 20,167 20,167
Dividend - - - - - - -
Excess (shortfall) in cash 195,687 176,269 128,675 110,075 173,010 206,578 200,704

Cash beginning of month 1,200,000 1,395,687 1,571,957 1,700,632 1,810,706 1,983,716 2,190,294
Cash end of month $ 1,395,687 $ 1,571,957 $ 1,700,632 $ 1,810,706 $ 1,983,716 $ 2,190,294 $ 2,390,998
 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020

$ 2,935,000 $ 2,642,790 $ 2,363,270 $ 2,136,820 $ 2,178,590

1,916,946 1,721,399 1,545,786 1,404,376 1,403,660

334,331 297,882 270,080 245,984 282,418
132,466 119,404 106,386 96,457 87,851
38,434 34,942 31,128 27,954 25,467
113,526 102,186 91,308 82,709 75,317
109,727 97,765 88,640 80,732 92,689
69,333 69,333 69,333 69,333 69,333
20,167 20,167 20,167 20,167 20,167
- - - - 50,000
200,069 179,712 140,441 109,109 71,689

2,390,998 2,591,068 2,770,780 2,911,221 3,020,331

$ 2,591,068 $ 2,770,780 $ 2,911,221 $ 3,020,331 $ 3,092,019
Budgeted Income Statement

Sunset Pale Three Lion Black Swan Unallocated

Total
Ale Premium Ale Lager Lager Fixed Costs
Revenue $ 5,775,600 $ 4,962,880 $ 9,146,880 $ 9,268,600 $ 29,153,960
Cost of Goods Sold
Direct Materials 3,703,361 2,878,384 4,475,263 7,812,014 18,869,022
Direct Labour 689,992 521,102 853,709 1,439,161 3,503,964
VOH Costs 246,426 186,108 304,896 513,986 1,251,416
FOH Costs 443,064 334,615 548,192 924,128 2,250,000
Cost of Goods Sold 5,082,843 3,920,209 6,182,060 10,689,289 25,874,401
Gross Margin % 12.0% 21.0% 32.4% -15.3% 11.2%
Selling and Administrative Expense
Commissions 72,195 62,036 114,336 115,858 364,425
Transportation Expense 202,146 162,845 266,784 442,365 1,074,140
Administrative Salaries 832,000 832,000
Office Expense 242,000 242,000
Earnings before taxes 766,995
Income tax expense 230,098
Net Income $ 536,896
Budgeted Balance Sheet
Actual Forecast
2019 2020
Assets
Cash $ 1,200,000 $ 3,092,019
Inventories $ 205,000 $ 205,000
Accounts Receivable $ 899,528 $ 1,159,910
Total Current Assets $ 2,304,528 $ 4,456,929

Property, Plant and Equipment (net) $ 2,300,000 $ 1,200,000

Land $ 600,000 $ 600,000

Total Assets $ 5,204,528 $ 6,256,929

Liabilities
Accounts Payable $ 794,360 $ 1,129,767
Tax Payable $ - $ 230,098
Shareholders' equity
Common Shares $ 4,200,000 $ 4,200,000
Retained Earnings $ 210,168 $ 697,064
Total Liabilities and Shareholders' equity $ 5,204,528 $ 6,256,929

Balance check $ - $ 0
Budgeted Cash Flows

Indirect Statement of Cash Flows

2020
Cash Flows from Operating Activities
Net Income $ 536,896
Add: depreciation expense 1,100,000
Increase in accounts receivable (260,382)
Increase in accounts payable 335,407
Increase in tax payable 230,098
Net cash provided by operating activities $ 1,942,019

Cash Flows from Investing Activities

Net cash provided by investing activities $ -

Cash Flows from Financing Activities

Payment of cash dividends $ (50,000)

Net cash provided by financing activities $ (50,000)

Net increase in cash $ 1,892,019

Cash at the beginning of the year $ 1,200,000
Cash at the end of the year $ 3,092,019