Genevieve Black, Inc. Sales Forecast For Year 5 Product Model Unite Andrie-June 150 Ethel-Dwight 135 Maryrose-Michael 300 Computations: Andrie—June = constant Ethel-Dwight - decrease for next year is twice the decrease of the previous year (195-175 = 20 x 2 = 40; 175 - 40 = 135) Maryrose-Michael increase for next year is three time (3x) the increase of the previous year (219 - 192 * 27 x 3-= 81; 219 + 81 = 300) Genevieve Black, Inc. Production Forecast For Year 5 Andrie-June Ethel-Dwight Maryrose-Michael Sales forecast 150 135 300 Add desired ending inventory 50 10 100 Total . 200 M45 400 Less expected beginning inventory 60 40 0 Budgeted production a} 1s 340Ex. 1-2, ‘ Materials limitation: Mexinun quentity available ~ 650,000 Add: expected beginning inventory 5,000 Total materiale available for use 655,000 Divide by materials’ required per unit of production Production in units from available materials 327,500 Labor Limitation: Available hours 80,000 Divide by hours ‘required ‘per unit of product (30/60) 0,50 Production in units fron available labor hours 160,000 Considering the above constraints, budgeted production should be set at 160,000 unit Budgeted sales may be computed as follows: Budgeted production 160,000 Add finished goods inventory 10,000 Budgeted sles 170,000Ex, W-3, Kaloy Enterprises Purchages Budget ‘ Pot. the Quarter Ended June 30, 19 Budgeted sales Add desired ending inventory* Total Less expected beginning inventory Budgeted Purchases +404 of next month's sales bri 50 in 10 10 210 Som Hay 300 160 460 120 we iS I tl June 400 140 540 160 we is iS tou 950 io 1,090 a 2Ex. I-64. Producers, Inc. Production Budget For the Year Ended First Second Third => Fourth Quarter Quarter Quarter = Quarter Total Budgeted sales 42,000 51,000 64,000 68,000 225, 000 Add desired ending inventory 4 800 4,800 7,200 7,200 1,200 Total 46,800 55,800 71,200 15,200 232,200 Less expected beginning inventory 4800» 4,800» 4,800 «7,200 4 B00 Budgeted production 42,000 1,000 66,400 68,000 227,400Ex. 1-5. Chlorine Oxalic Acid Budgeted production 10,000 bottles 10,000 bottles x Requirement per unit 1 gram 2 grams Materials required for production 10,000 grams (20,000 grams + Ghlorine Production requirement 10,000 Add desired ending inventory (40%) 4,000 Total 14,000 Less expected beginning inventory® 2,000 Budgeted purchases 12,000 x Anticipated purchase price per gram P0.50 (0.50 x 120%) Purchases budget P6000 : * Production during the current year is 1/2 the budgeted production for next ye (10,000 x 1/2 = $,000). Ending inventory. this year, which is’ 40% of the year production will be the beginning inventory next year. Thus, beginning inventori for the two materials are: Chlorine reas) Oxalic acid - 5Ex. Il-6. |, Budgeted production 50,000 units x Required hours per unit Wi 2 nour Budgeted direct labor hours 100,000 hours x Direct labor rate per hour : P 3,00. Direct labor cost budget P300,000 2, Budgeted overhead costs: Variable (100,000 hrs. x P1.50/hr.) P150,000 - Fixed: (P360,000/12) 30,000 Total budgeted factory overhead P180 ,000x. I-7, Colecta Company Schedule of Cash Receipts For the Quarter Ended December 31, 19 October Novenber December Total Cash’ sales (308) P 159,000 183,000 225,000 P 567,000 Add collection of accounts receivable: Frow current month's sales (508): 185,500 213,500 262,500 061,500 From previous ronth's sales (30) 79,800 111,300 128,100 319,200 Fron:sales 2 nos. prior to current month (IBA) 54,920 47,880 66,780 167,580 Proceeds from sale of Land (P250,000 x 3) 750,000 = == 30,000 Budgeted Cash Receipts P14227,220 555,680 P682,380 2,465,280Ex. 11-8. : ‘ : Bayarin Corporation Cash Payments Budget Por the Quarter Ended March 31, 19 January February March Total Accounts payable arising from materials. purchases I/ P125,000 + —P150,000 P170,000, P445,000 Operating expenses (45,000 4,500) 40,500 40,500 40,500. ‘121,500 deqinition of delivery vehicle 120,000 2! * 99,000 2! 20,000 160,000 Dividends °°, hi : - 50,000 50,000 Budgeted Cash Disbursenents pe 22854500 P210,500 280,500 P776,900 Vif credit term given'is 30° days, purchases this month are paid in the following month. 2/ Down payments; P400,000:x 30% = P/20,000 y Monthly instal nents » #400000 - P120,000 720,00 j 14 months alesEx, 1-9, Cash balance, beginning Add cash receipts? Cash ‘sales’ Rental income Total cash receipts Total cash available Less operating expenses* Cash balance, ending Gross revenue x Operating expenses ratio Total operating expenses Less non-cash operating expenses Cash operating expenses Gipit Company Cash Budget April P 25,000 P 88,000 20,000 P108,000 P133, 000 13,200 P119,800 “For the Quarter Ended June 30,- 19 May P119,800 P 95,000 20,000 P115,000 P734,800 16,000 P218,800 P 108,000 40% | P 43,200 30,000 P13.200 June P218, 800 P 74,000 20,000 P 94,000 P312, 800 7,600 P305,,200 P115,000 40% P 46,000 30,000 218,000 Total P 25,000 P257,000 60,000 P317, 000 P342,000 36,800 305, 200 P 94,000 40% P 37,600 30,000 22.600PROBLEMS Pll, Ayko Ayza Total Budgeted Sales Butsoy Corporation Sales Budget For the Year Ended December 31, 19¢ Units Selling Price Total 6,000 P90 ‘sf P540,000 3,000 10 -. , * 300,000 840,000 Butsoy Corporation Production Budget For the Year Ended December 31, 19C Ayko Ayza Budgeted sales 6,000 3,000 Add desired ending inventory 1,100 500 Total 7,100 3,500 Less expected beginning inventory 750 400 Budgeted Production 6.350 “3Butsoy Corporation Materials Purchases Budget For the Year Ended December 31, 19¢ Ayko Ayza Production requirement Add desired ending inventory Total Less expected beginning inventory Purchases Budget (in quantities) x Cost per unit Purchases Budget 19,830 450 19,380 iS ss ix jo iS 18 sang * 25}400 ° 9,300 34,700 “900 35,600.° 1,200 re 34,400 “Ph P137,600Butsoy Corporation Direct Labor Cost Budget : "dg diet ior cost ‘ For the Year Ended December 31, 19 i eee ial Ayko is 6,350 “x. Labor: hours rere per unit Me : .hudgeted direct: ltr hours 31,150 ak Direct, labor’ rats per hour mI 295,250Butsoy Corporation ci a RG -Budgeted Cost of Goods Sold For the Year Ended December 31, 19C Ayko ayza Finished goods beginning inventory (750x P40) 30,000 (400 x P65) P26,000 Add cost of: goods manufactured: Materials: "engl! * (9,050 x 2) P 38,100 HM nn Beng? (25,400 x P4) 101,600 (9,300 x P 4) 37,200 Beng? :> ee ul (9,300 x P 3) 27,900 Labor 95,250 37,200 Factory overhead (31,750 x P5) 158,750 (12,400 x P 5) _ 62,000 Total Cost of Goods Manufactured 393,700 P164, 300 Cost of Goods Available for Sale P423,700 P190, 300 Less. finished’ goods: ending inventory {1,100 x (P393,700/6,350)] 68,200 [ - 500° x: (P164,300/3, 100)) 26,500 Cost of Goods Sold, 9 P355,500 P163,800Plle2,, All Ramon Company Manufacturing: Costs Budget For the Year Ended December 31, 1991 Materials? <° ad 1750 kes. @ P 8) P14,000 iB il 000 Liters @ P15) 15,000 Direct’ Labor: Operation | (4,000 hrs. @ PS) P20,000 Operation 2 (2,000 hrs, @ P4.50) 9,000 Variable factory overhead: Indirect, Labor [(4,000 + 2,000) x 0.50] P 3,000 Indirect. supplies (50,000 x P0.008) 400 Caer Maci [(4,000 + 2,000) x PO, 10] 600 Fixed factory ‘vetigede £ Supervision: Spates P 4,000 Depreciation 2,300 Insurance i 500 Total budgeted manufacturing costs P29,000 29,000 4,000 6,800 P68, 800Flowerful, Inc... Budgeted Income Statement For the Year Ended December 31, ‘1990 First Second Third Fourth Quarter Quarter Quarter Quarter Total Net sales P350,000 P400,000 P450,000 440,000 P1, 640,000 Less cost of goods sold: Finished goods beginning inventory P 55,000 P 70,000 P 65,000 P 75,000 P 55,000 Cost of goods manufactured 240,000 250,000 280,000 _250,000 1,020,000 Cost of goods available for ; sale 295,000 P320,000 345,000 325,000 ~—-P1,075,000 Less finished goods ending inventory 70,000 65,000 _75,000 60,000 Cost of goods sold P225,000 P255,000 — P270,000 71,015,000 Gross income 7175,000 143,000. P7180, 000 F 625,000 Operating expenses 80,000 85,000 _ 90,000 350,000 Incone before tax P 45,000 P 60,000 | P-90,000° P 275,000 ese provision for income tax 15,750 21,000 31,500 96,250 Net. Income ; 229,250 P.39,000 . B.58,500 B178,750Flowerful, Inc. Cash Budget For the Year Ended Decenber,31, 1990” Firet Second mid. ! ‘Foutth Quarter Quarter.” Quarter: “Quatter ’ 3 Total Cash balance, beginning P 95,000 190,000 P239,250 348,250 P_95,000 Add cash receipts: 60% of current quarter's sales 210,000 240,000, 270,000 264,000 984,000 40% of previous quarter's Beh ae SS we : sales 150,000 140,000. 160,000 _ 180,000 630,000 Total cash receipts P360,000 380,000 . P430,000°" “P444,000:, ..P1,614,000 Total cash available 455,000 —P570,000 - P669,250 792,250; 1,709,000 Less cash disbursements: Production cost ‘ : (excl. depn. of P55,000) —P185,000 195,000 ._P225,000, P195,000,. P 800,000 | Operating expenses (net of P15,000 depn.) 65,000 70,000, 75,000 +. 80,000 290,000 Income tax 15,000 15,750 * 21,000 31,500", 83,250 Dividends 50,000 50,000 100,000 Total cash disbursements 7265,000 P330,750 321,000 7356500. P1,273,250 Cash balance, ending 190,000 239,250 — P348,250 = P435,750 P4355Flowerful, inc. Budgeted Balance Sheet March 31 June 30 Sept. 30 Dec. 31 Assets Cash © P 190,000 P 239,250 P 348,250 P §35,750, Accounts receivable 140,000 160,000 180,000 176,000- Inventory 1 70,000 65,000 75,000 60,000 Plant and equipment (net of depreciation)= 655,000 585,000 515,000 445,000 Total Assets . P1 055,000 P1,049 250 P1118, 250 P1116 ,750 + Equities . a Income tax payable P 15,750 P 21,000 P 31,500 P 28,000 Capital stock 800,000 800,000 800,000 800,000 Retained. earnings~ 239,250 228,250 286,750 288, 750 Total equities P1,055,000 P1049 250 P1118, 250 P1,116,750Flowerrul, inc, Budgeted Balance Sheet March 31 June 30 Sept. 30 Dec. 31 Assets Cash P 190,000 P 239,250 P 348,250 P $35,750, Accounts receivable 140,000 160,000 180,000 176 ,000- Inventory 1 70,000 65,000 75,000 60,000 Plant and equipment (net of depreciation)= 655,000 585,000 515,000 445,000 Total Assets . P1055 000 P1049 250 PI, 118,250 P1,116,750 - Equities L 4 Income tax payable P 15,750 P 21,000 P 31,500 P 28,000 Capital stock 800,000 800,000 800,000 800,000 Retained. earnings~ 239,250 228,250 286,750 288, 750 Total equities P1,055,000 P1049 250 P1118, 250 PI 116,750PIl-4, 1, Budgeted cash collections for April: From sales in March: Total sales (16,000 x p40) Amount collectible in April Less discount (480,000 x 66-2/3% x 3%) From February sales (15,000 x P40 x 20%) Budgeted cash collections in April 2, Accounts receivable balance, March 31 Add April sales (13,500 x P40) Total Less: April collections Discounts availed Accounts receivable balance, April 30 640,000 x_Tih P480,000 9,600 5905400 9,600 P470,400 120, 000 590,400 P 600,000 540,000 P1, 140,000 600,000 i} 000Cash Receipts Schedule For the Quarter Ended March 31, 19x4 January February Collection of accounts receivable: Current month's sales (60%) P36,000 P30,000 Previous month's sales (40%) 15,000 24,000 ° Total Cash Receipts P51,000 P54.000 Purchases Budget For the Quarter Ended March 31, 19x4 January February Raw materials to be used (50% of sales)P30,000 25,000 Add desired ending inventory 15,000 16,500 Total P45,000 P41, 500 Less expected beginning inventory 18, 000 15,000 Raw Materials Purchases P27,000 —-P26,500 March P33,000 20,000 233,000 March 27,500 13,500 41,000 16,500 P2450 Total P 99,000 59,000 £138,000 Total P. 82,500 13,500 P 96,000 18,000 278,000Cash Disbursenents Schedule For the Quarter Ended March 31, 19x4 Janary February March Total Accounts payable arising from purchases P14,000 P2700 = -P26,500.-P.67,500 Direct Labor (20% of materials cost) 6,000 5,000 5,500. 16,500 Other manufacturing costs (982,500 + P16,500) x 20% or ee 6,600 6,600 6600 19,800 Operating costs (102 of sales) 6,000 5,000 5,500 16,500 Total Cash Disbursements P32,600 — P43,600 P4100 120,300Balak Corporation Cash Budget For the Quarter Ended March 31, 19x4 Cash balance, beginning Add cash receipts (No, 1): Total cash available Legs cash disbursements (No.3) Cash balance, ending January P10, 000 51,000 61,000 32,600 728,400 February 728,400 4,000 80,400 43,600 38,800 P38, 800 3 +P9) ,800 4 P47, 700 P 10,000 158,000 P168,000 120,300 4) B4),) EBalak Corporation Projected Incone Statenent For the Quarter Ended December 31, 19x4 Sales Cost of sales: Materials Direct labor Other manufacturing costs Total Gross Incone Less operating expenses Incone* *Income taxes are ignored, January P60,000 30,000 ’ lee is lez E eetY P50, 000 25,000 5,000 6,0 10 P13,400 tn bt March 55,000 P27,500 5,500 6,600 39,600 15,400 5,500 P 9,9006. Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total assets Pl)-6 ' Balak Corporation Budgeted Balance Sheet March 31, 19x4 Equities P 47,700 Accounts payable 22,000 Capital stock 13,500 Retained earnings 22,000 P105,200 Total equities KADUNE Corporation Expected Cash Collections May, 1990 From March sales (P60,000 x 9%) From April sales (P78,000 x 20%) From May sales (P66,000 x 70%) Expected cash collections, May, 1990 P 24,500 26,000 54,700 2105200 P 5,400 15, 600 46,200 P67.200KADUNE Corporation Expected Cash Disbursements May, 1990 For April purchases (P54,000 x 98%) For May expenses Expected cash disbursements, May, 1990 KADUNE Corporation Expected Cash Balance May 31, 1990 Cash balance, May | Expected cash collections Cash available Expected cash disbursements Expected cash balance, May 31 P52,920 14,400 P67,320 P22,000 67,200 P89, 200 (67,320) 21,880PVI-7 KAONOR Company Cash Budget For the Years Ending March 31, 1991 1992 \alance of cash at beginning P 0 P 75,000 ‘ash generated from operations Collections from customers ~ Schedule A P825,000 P1,065,000 Disbursements Direct materials - Schedule B 220,000 P 245,000 Direct labor (ww y %o) 300,000 C*™™ » w)> 360,000 Variable overhead (yo,em x (0) 100,000 (2,em x 18) 120,000 Fixed costs 130,000 130,000 Total disbursementsq P750,000 P__ 855,000 Excess of cash collections over cash Disbursements from operations P_75,000 P__210,000 Cash available from operations P 75,000 P 285,000 Cash received from liquidation of existing accounts receivable and inventories ( {¥.9™ f 4 1m) __ 90,000 0 Total cash available P 165,000 P 285,000 Payments to general creditors (spel + prosds 90,000 (>%9m + 1A." = 40m) 270,000 (2) we Balance of cash at end 7 75,000 (1) B_15,000 (1) This amount could have been ” wdad to pay.guberel eredieore or carried forward to the beginning of the next year (2) (600,000 x 60%) - (50,000 + P40,000)Schedule A KAONOR Company Collections From Customers For the Years Ending March 31, 19h ist Sales | (0m far) 900,000 ('%™ x ta)» og000 Beginning accaunts receivable 0 75,000 Total i P900,000 P1, 155,000 Less ending accounts receivable ( ef - (omit) 75,000 (iP v) 90 ,000 Collections from customers P825 ,000 P1065 000 4Schedule -B a KAONOR Company .. je Disbursements for Direct Materials ! For the Years Ending March 31, 1991 1992 Direct materials required for production (14,000 x4») P200,000 (A.r0 xt») p240,000 Required, ending inventory 40,000 (3) 50,000 (4) Total 7 P240,000 P290,000 Less’ beginning inventory ; 0 40,000 Purchases 240,000 P250,000 Beginning accounts payable ' 0 (#2. /») 20,000 # Total nannies P240,000 270,000 Less ending accounts payable 20,000 (> /*) 25,000 Disbursements for direct materials 220,000 P245 000 (3) 12,000 units x 2/12 = 2,000; 2,000 x P20 per unit = P40,000 (4) 15,000 units x 2/12 = 2,500; 2,500 x P20 per unit = P50,000