bob's bicycles - master budget 2010
DESCRIPTION
budget spreadsheetTRANSCRIPT
Porter's Problems Co.Basic Information
For Year Ended December 31, 2007
Budget - Data Input SheetSales Information:Sales Growth Assumptions: 2% per quarter for the basic model (mature life stage)
5% per quarter for the deluxe model (growth stage)2009
Sales in units: 2010 2011 Ending
Q1 Q2 Q3 Q4 Year total Q1 Q2 Inventory
Basic 4,000 4,080 4,162 4,245 16,486 4,330 4,416 807
Deluxe 2,000 2,100 2,205 2,315 8,620 2,431 2,553 98
Collection Information:Credit Policy: Cash Sales Credit Sale In same In next In third In fourth Bad
30% 70% Quarter Quarter Quarter Quarter Debt
Collection Policy 60% 30% 9% 0% 1%
Collections from prior year:
Prior Actual Actual Budgeted Receipts in Current YearYear Sales Collected Q1 Q2 Q3 Q4 YearQ3 $779,800 $725,214 $49,127 $0 $0 $0 $49,127 Q4 $901,350 $648,900 $189,284 $56,785 $0 $0 $246,069
$238,411 $56,785 $0 $0 $295,196
Manufacturing Information:Direct Materials Ending Inventory 15% of next quarter's production needs
Basic Bicycle Ending Inventory 20% of next quarter's sales needsDeluxe Bicycle Ending Inventory 5% of next quarter's sales needs
Direct Material Information: Direct Labor Information:2009 Hours of DL per Normal bike:
Units Cost per Cost per Ending Hours of DL per Specialty bike:Basic Bike Needed Unit Bike Inventory Wages per Hour:Steel 2 $15.00 $30.00 1295Rubber Handles 2 $2.00 $4.00 1286 Manufacturing OH Information:Seat 1 $4.00 $4.00 640 Variable OH Allocation per DL hr:Chain 1 $6.00 $6.00 652Tires 2 $10.00 $20.00 1275 Fixed OH per year:Gear Shift 1 $8.00 $8.00 609 Amount of Fixed OH from Depr:Brake Unit 1 $6.00 $6.00 658
Standard Cost:
Deluxe Bike Basic Bike 116Steel 3.5 $15.00 $52.50 * Deluxe Bike 229Special Handles 2 $5.00 $10.00 32
Specialty Seat 1 $14.00 $14.00 26 A/P Purchase Payment Policy
Porter's Problems Co.Basic Information
For Year Ended December 31, 2007
Chain 1 $6.00 $6.00 * Payments made in current QTires 2 $10.00 $20.00 * Payments made in next QExpanded Shift 1 $25.00 $25.00 34Brake Unit 1 $6.00 $6.00 *
Prior year purchasesActual Actual
* inventory for standard items is used for both bikes Total Purch Paidbut only shown here for the Basic Bike $452,650 $338,700
Porter's Problems Co.Basic Information
For Year Ended December 31, 2007
Selling and Administrative Expense Information:
Variable S&A for Normal bikes: $15 Variable S&A for Specialty bikes: $20
Selling
Price Fixed S&A Expenses per year:
$150
$350 Advertising $125,000
Executive Salaries $65,000
Property Taxes $7,800Office Rent $12,000
Sales Cleaning Fees $6,000
Inventory R&D Costs $18,500
Credit/Collections
Purchasing Cash Flow and Investment Information:Accounting RequirementsProduction
Minimum Cash Balance: $30,000 Dividends
Required Dividend Payment each Qtr: $10,000
Planned Expansion (Purchase of Equipment)Budgeted Purchases in Current Year
Q1 Q2 Q3 Q4 Year$50,000 $75,000 $40,000 $22,000 $187,000
Debt Information:25 Amount owed on bond $997,600
$14 Interest rate on bond 5%
Line of Credit Max: $2,000,000$1.75 Interest Rate on LofC: 12%
$250,000 Common Stock information:25%
Shares of stock outstanding: 100,000 at $10 per share
Miscellaneous Information:
The company's tax rate is: 30%
A/P Purchase Payment Policy Last year the company paid taxes of: $108,500
Porter's Problems Co.Basic Information
For Year Ended December 31, 2007
75.0% Amount of last year's tax to pay this year: 105%25.0% Total tax to prepay this year: $113,925
Payment due each quarter: $28,481
Budgeted Payments in Current YearQ1 Q2 Q3 Q4 Year
$113,950 $0 $0 $0 $113,950
Porter's Problems Co.Basic Information
For Year Ended December 31, 2007
Bob's BicyclesBalance Sheet
As of December 31, 2009
Assets
Current Assets
Cash $30,176
Accounts Receivable $295,196
Direct Materials Inventory $51,413 Finished Good Inventory $116,060
Total Current Assets $492,845
Property, Plant, and Equipment
Building $1,500,000 Equipment $1,500,000 Accumulated Depr - Equipment ($875,000)
Total PPE $2,125,000
Total Assets $2,617,845
Liabilities and Stock Holder's Equity
LiabilitiesAccounts Payable $113,950 Bonds Payables $997,600
Total Liabilities $1,111,550
Stockholder's EquityCommon Stock (100,000 shares outs $1,000,000 Retained Earnings $506,295
Total Stockholder's Equity $1,506,295
Total Liabilities and Stockholder's Equity $2,617,845
Porter's Problems Co.Basic Information
For Year Ended December 31, 2007
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Porter's Problems Co.Sales and Collections Budget
For the Year Ended December 31, 2007
Sales Budget
2010 2011Q1 Q2 Q3 Q4 Year Q1
Basic Bicycle $ 600,000 $ 612,000 $ 624,240 $ 636,725 $2,472,965 $ 649,459 Deluxe Bicycle $ 700,000 $ 735,000 $ 771,750 $ 810,338 $3,017,088 $ 850,854 Total Sales Revenue $1,300,000 $1,347,000 $1,395,990 $1,447,062 $5,490,052 $ 1,500,314
Schedule of Cash CollectionsQuarter Collected during
Q1 Q2 Q3 Q4 Bad Debt YearCollections from 2009 $238,411 $56,785 $0 $0 $295,196 Q1 $936,000 $273,000 $81,900 $0 $9,100 $1,290,900 Q2 $969,840 $282,870 $84,861 $9,429 $1,337,571 Q3 $1,005,113 $293,158 $9,772 $1,298,271 Q4 $1,041,885 $10,129 $1,041,885
$1,174,411 $1,299,625 $1,369,883 $1,419,904 $38,430 $5,263,823
Porter's Problems Co.Sales and Collections Budget
For the Year Ended December 31, 2007
2011Q2
$ 662,448 $ 893,397 $ 1,555,846
Schedule of Cash Collections
Remaining A/R Check figure
$0 $1,300,000 $0 $1,347,000
$87,947 $1,395,990 $395,048 $1,447,062 $482,995 $5,490,052
Porter's Problems Co.Production Budget
For the Year Ended December 31, 2007
Production Budget
2010 2011Q1 Q2 Q3 Q4 Year Q1 Q2
Basic Bicycles:Budgeted Sales 4,000 4,080 4,162 4,245 16,486 4,330 4,416Desired Ending Inventory 816 832 849 866 866 883
Total Units Needed 4,816 4,912 5,011 5,111 17,352 5,213Less: Beginning Inventory 807 816 832 849 807 866
Required Normal Bike Production 4,009 4,096 4,178 4,262 16,545 4,347
Deluxe Bicycles:Budgeted Sales 2,000 2,100 2,205 2,315 8,620 2,431 2,553Desired Ending Inventory 105 110 116 122 122 128
Total Units Needed 2,105 2,210 2,321 2,437 8,742 2,559Less: Beginning Inventory 98 105 110 116 98 122
Required Normal Bike Production 2,007 2,105 2,211 2,321 8,644 2,437
Porter's Problems Co.Direct Materials and Cash Disbursements for Materials Budgets
For Year Ended Dec. 31, 2007
Direct Materials Budget
2010 2011Q1 Q2 Q3 Q4 Year Q1
Required ProductionNormal 4,009 4,096 4,178 4,262 16,545 4,347Deluxe 2,007 2,105 2,211 2,321 8,644 2,437
Direct Materials NeededBasic
Steel 8,018 8,193 8,356 8,524 33,091 8,694Rubber Handles 8,018 8,193 8,356 8,524 33,091 8,694Seat 4,009 4,096 4,178 4,262 16,545 4,347Chain 4,009 4,096 4,178 4,262 16,545 4,347Tires 8,018 8,193 8,356 8,524 33,091 8,694Gear Shift 4,009 4,096 4,178 4,262 16,545 4,347Brake Unit 4,009 4,096 4,178 4,262 16,545 4,347
DeluxeSteel 7,025 7,368 7,737 8,124 30,253 8,530Special Handles 4,014 4,211 4,421 4,642 17,288 4,874Specialty Seat 2,007 2,105 2,211 2,321 8,644 2,437Chain 2,007 2,105 2,211 2,321 8,644 2,437Tires 4,014 4,211 4,421 4,642 17,288 4,874Expanded Shift 2,007 2,105 2,211 2,321 8,644 2,437Brake Unit 2,007 2,105 2,211 2,321 8,644 2,437
TotalsSteel 15,043 15,561 16,093 16,647 63,344 17,224Rubber Handles 8,018 8,193 8,356 8,524 33,091 8,694Seat 4,009 4,096 4,178 4,262 16,545 4,347Chain 6,016 6,202 6,389 6,583 25,189 6,784Tires 12,032 12,403 12,778 13,166 50,378 13,568Gear Shift 4,009 4,096 4,178 4,262 16,545 4,347Brake Unit 6,016 6,202 6,389 6,583 25,189 6,784Special Handles 4,014 4,211 4,421 4,642 17,288 4,874Specialty Seat 2,007 2,105 2,211 2,321 8,644 2,437Expanded Shift 2,007 2,105 2,211 2,321 8,644 2,437
Desired Ending InventorySteel 2,334 2,414 2,497 2,584 2,584Rubber Handles 1,229 1,253 1,279 1,304 1,304Seat 614 627 639 652 652Chain 930 958 987 1,018 1,018Tires 1,860 1,917 1,975 2,035 2,035Gear Shift 614 627 639 652 652Brake Unit 930 958 987 1,018 1,018Special Handles 632 663 696 731 731Specialty Seat 316 332 348 366 366Expanded Shift 316 332 348 366 366
Porter's Problems Co.Direct Materials and Cash Disbursements for Materials Budgets
For Year Ended Dec. 31, 2007
Total NeedsSteel 17,377 17,975 18,590 19,231 65,928Rubber Handles 9,247 9,446 9,635 9,828 34,395Seat 4,623 4,723 4,818 4,914 17,197Chain 6,946 7,160 7,376 7,600 26,207Tires 13,892 14,320 14,752 15,201 52,414Gear Shift 4,623 4,723 4,818 4,914 17,197Brake Unit 6,946 7,160 7,376 7,600 26,207Special Handles 4,646 4,874 5,117 5,373 18,019Specialty Seat 2,323 2,437 2,559 2,687 9,009Expanded Shift 2,323 2,437 2,559 2,687 9,009
Less: Beginning InventorySteel (1,295) (2,334) (2,414) (2,497) (1,295)Rubber Handles (1,286) (1,229) (1,253) (1,279) (1,286)Seat (640) (614) (627) (639) (640)Chain (652) (930) (958) (987) (652)Tires (1,275) (1,860) (1,917) (1,975) (1,275)Gear Shift (609) (614) (627) (639) (609)Brake Unit (658) (930) (958) (987) (658)Special Handles (32) (632) (663) (696) (32)Specialty Seat (26) (316) (332) (348) (26)Expanded Shift (34) (316) (332) (348) (34)
Direct Materials to be PurchasedSteel 16,082 15,641 16,176 16,734 64,633Rubber Handles 7,961 8,217 8,382 8,549 33,109Seat 3,983 4,109 4,191 4,275 16,557Chain 6,294 6,230 6,418 6,613 25,555Tires 12,617 12,459 12,836 13,226 51,139Gear Shift 4,014 4,109 4,191 4,275 16,588Brake Unit 6,288 6,230 6,418 6,613 25,549Special Handles 4,614 4,242 4,454 4,677 17,987Specialty Seat 2,297 2,121 2,227 2,338 8,983Expanded Shift 2,289 2,121 2,227 2,338 8,975
Cost per unit of Direct MaterialsSteel $15 $15 $15 $15 $15 Rubber Handles $2 $2 $2 $2 $2 Seat $4 $4 $4 $4 $4 Chain $6 $6 $6 $6 $6 Tires $10 $10 $10 $10 $10 Gear Shift $8 $8 $8 $8 $8 Brake Unit $6 $6 $6 $6 $6 Special Handles $5 $5 $5 $5 $5 Specialty Seat $14 $14 $14 $14 $14 Expanded Shift $25 $25 $25 $25 $25
Cost of Direct Materials to be purchased
Porter's Problems Co.Direct Materials and Cash Disbursements for Materials Budgets
For Year Ended Dec. 31, 2007
Steel $241,225 $234,613 $242,646 $251,006 $969,490Rubber Handles $15,922 $16,434 $16,763 $17,098 $66,218Seat $15,934 $16,434 $16,763 $17,098 $66,230Chain $37,765 $37,378 $38,507 $39,678 $153,329Tires $126,175 $124,593 $128,357 $132,261 $511,386Gear Shift $32,116 $32,869 $33,526 $34,197 $132,707Brake Unit $37,729 $37,378 $38,507 $39,678 $153,293Special Handles $23,068 $21,210 $22,271 $23,384 $89,934Specialty Seat $32,155 $29,695 $31,179 $32,738 $125,767Expanded Shift $57,220 $53,026 $55,677 $58,461 $224,384
Total Cost $619,308 $603,630 $624,198 $645,601 $2,492,737
Schedule of Cash Payments
QuarterQ1 Q2 Q3 Q4 Year
Accounts Payable, Beginning $113,950 $0 $0 $0 $113,950 Q1 $464,481 $154,827 $0 $0 $619,308 Q2 $0 $452,723 $150,908 $0 $603,630 Q3 $0 $0 $468,148 $156,049 $624,198 Q4 $0 $0 $0 $484,201 $484,201
Total Cash Paid for Mat$578,431 $607,550 $619,056 $640,250 $2,445,287
Porter's Problems Co.Direct Labor Budget
For Year Ended December 31, 2007
Direct Labor Budget
2010Q1 Q2 Q3 Q4 Year
Required ProductionBasic 4,009 4,096 4,178 4,262 16,545Deluxe 2,007 2,105 2,211 2,321 8,644
DL hours per bicycleBasic 2 2 2 2 2Deluxe 5 5 5 5 5
Total DL hours neededBasic 8,018 8,193 8,356 8,524 33,091Deluxe 10,035 10,526 11,053 11,605 43,219
Total DL hours needed 18,053 18,719 19,409 20,129 76,310
Cost per DL Hour $14 $14 $14 $14 $14 Total DL Cost $252,742 $262,064 $271,727 $281,803 $1,068,337
Porter's Problems Co.Manufacturing Overhead Budget
For Year Ended December 31, 2007
Manufacturing Overhead Budget
2010Q1 Q2 Q3 Q4 Year
Budgeted DL hours 18,053 18,719 19,409 20,129 76,310Variable OH rate $1.75 $1.75 $1.75 $1.75 $1.75
Total Variable OH $31,593 $32,758 $33,966 $35,225 $133,542 Fixed OH $62,500 $62,500 $62,500 $62,500 $250,000
Total OH $94,093 $95,258 $96,466 $97,725 $383,542
Total Manufacturing OH $383,542 Budgeted DL Hours 76,310
Predetermined OH for 2007 $ 5.03
Schedule of Cash Disbursements for Overhead2010
Q1 Q2 Q3 Q4 YearTotal OH $94,093 $95,258 $96,466 $97,725 $383,542 Less: Depreciation and Amortization $15,625 $15,625 $15,625 $15,625 $62,500
Cash Disbursements for OH $78,468 $79,633 $80,841 $82,100 $321,042
Porter's Problems Co.Ending Inventory Budget
For Year Ended December 31, 2007
Ending Finished Goods Inventory Budget
Item Quantity Cost TotalProduction Cost per Basic BikeDM Steel 2 units $15 each $30
Rubber Handle 2 set $2 each $4Seat 1 unit $4 each $4Chain 1 unit $6 each $6Tires 2 unit $10 each $20Gear Shift 1 unit $8 each $8Brake Unit 1 unit $6 each $6
Total DM $78DL 2 hours $14 per hour $28OH 2 hours $5.03 per DL hour $10
Unit Production Cost $116 Ending finished goods inventory in units - Basic Bikes 866 Ending finished goods inventory in dollars - Basic Bikes $ 100,495
Production Cost per Deluxe BikeDM Steel 3.5 units $15 each $53
Special Handle 2 set $5 each $10Specialty Seat 1 unit $14 each $14Chain 1 unit $6 each $6Tires 2 unit $10 each $20Expanded Shift 1 unit $25 each $25Brake Unit 1 unit $6 each $6
Total DM $134DL 5 hours $14 per hour $70OH 5 hours $5.03 per DL hour $25
Unit Production Cost $229 Ending finished goods inventory in units - Deluxe Bikes 122 Ending finished goods inventory in dollars - Deluxe Bikes $ 27,790
Total Ending Finished Goods Inventory $ 128,285
Porter's Problems Co.Selling and Administrative Expense Budget
For Year Ended December 31, 2007
Selling and Administrative Budget
2010Q1 Q2 Q3 Q4 Year
Budgeted sales (by bicycle)Basic 4,000 4,080 4,162 4,245 16,486Deluxe 2,000 2,100 2,205 2,315 8,620
Variable S&A ExpenseBasic $15 $15 $15 $15 $15 Deluxe $20 $20 $20 $20 $20
Total Variable S&ABasic $60,000 $61,200 $62,424 $63,672 $247,296 Deluxe $40,000 $42,000 $44,100 $46,305 $172,405
Total Variable S&A $100,000 $103,200 $106,524 $109,977 $419,701
Budgeted Fixed S&A ExpensesAdvertising $31,250 $31,250 $31,250 $31,250 $125,000Executive Salaries $16,250 $16,250 $16,250 $16,250 $65,000Property Taxes $1,950 $1,950 $1,950 $1,950 $7,800Office Rent $3,000 $3,000 $3,000 $3,000 $12,000Cleaning Fees $1,500 $1,500 $1,500 $1,500 $6,000R&D Costs $4,625 $4,625 $4,625 $4,625 $18,500
Total Budgeted Fixed S&A Expense $58,575 $58,575 $58,575 $58,575 $234,300
Total S&A Expense $158,575 $161,775 $165,099 $168,552 $654,001
Porter's Problems Co.Cash Budget
For Year Ended December 31, 2007
Cash Budget
2010Q1 Q2 Q3 Q4
Cash Balance, Beginning $30,176 $35,420 $98,071 $240,281 Add Receipts:
Cash Collected from Customers $1,174,411 $1,299,625 $1,369,883 $1,419,904 Total Cash Available $1,204,587 $1,335,045 $1,467,954 $1,660,184
Less: Manufacturing OutflowsDirect Materials ($578,431) ($607,550) ($619,056) ($640,250)Direct Labor ($252,742) ($262,064) ($271,727) ($281,803)Variable OH ($31,593) ($32,758) ($33,966) ($35,225)Fixed OH ($46,875) ($46,875) ($46,875) ($46,875)
Total Manufacturing Outflows ($909,641) ($949,247) ($971,623) ($1,004,154)
Less: Selling & Admin OutflowsVariable Selling and Admin ($100,000) ($103,200) ($106,524) ($109,977)Fixed Selling and Admin ($58,575) ($58,575) ($58,575) ($58,575)
Total Selling and Admin ($158,575) ($161,775) ($165,099) ($168,552)
Total Cash Outflows from Operations ($1,068,216) ($1,111,022) ### ($1,172,707)Cash Available from Normal Operations $136,371 $224,023 $331,232 $487,478
Less: InvestmentsEquipment Purchases ($50,000) ($75,000) ($40,000) ($22,000)
Cash Available after Investments $86,371 $149,023 $291,232 $465,478
Miscellaneous Cash FlowsIncome Taxes ($28,481) ($28,481) ($28,481) ($28,481)Bond Interest Payments ($12,470) ($12,470) ($12,470) ($12,470)Sale of Stock, issue of other debt, etc. $0 $0 $0 $0 Dividends ($10,000) ($10,000) ($10,000) ($10,000)
Total Miscellaneous Cash Flows ($50,951) ($50,951) ($50,951) ($50,951)Total Cash before Line of Credit $35,420 $98,071 $240,281 $414,527
Line of CreditBeginning Balance (not a Cash Flow) $0 $0 $0 $0 Interest (not a Cash Flow) $0 $0 $0 $0
Loans $0 $0 $0 $0 Repayments
Principal $0 $0 $0 $0 Interest $0 $0 $0 $0
Ending Cash Balance $35,420 $98,071 $240,281 $414,527
Porter's Problems Co.Cash Budget
For Year Ended December 31, 2007
Cash Budget
2010Year$30,176
$5,263,823 $5,293,999
($2,445,287)($1,068,337)
($133,542)($187,500)
($3,834,665)
($419,701)($234,300)($654,001)
($4,488,667)$805,332
($187,000)$618,332
($113,925)($49,880)
$0 ($40,000)
($203,805)$414,527
$0
$0
$0 $0
$414,527
CBE:You can use the beginning balance here too.
I leave it blank to remind myself that I am not going to use it in the financial statements
Bob's BicyclesPro Forma Income Statement
For Year ended December 31, 2010
Sales $5,490,052 Cost of Goods Sold ($3,884,140)
Gross Profit $1,605,912
Less Selling and Administrative ($654,001)Bad Debt Expense ($38,430)Income before Interest and Taxes $913,480
Interest Expense ($49,880)Income before Taxes $863,600
Income Taxes Expense ($259,080)Net Income $604,520
EPS $6.05
Income Statement Calculations
COGS
Beginning FG inventory $116,060 DM
Beginning $51,413 Plus: Purchased $2,492,737 Less: Ending ($99,663)
Total DM $2,444,487 DL $1,068,337 OH (Manufacturing) $383,542
Total Cost of Goods Available for Sale $4,012,426 Less: Ending Inventory $128,285
COGS $3,884,140
Ending Inventory
Steel 2,584 $15 $38,754 Rubber Handles 1,304 $2 $2,608 Seat 652 $4 $2,608 Chain 1,018 $6 $6,106 Tires 2,035 $10 $20,352 Gear Shift 652 $8 $5,216 Brake Unit 1,018 $6 $6,106 Special Handles 731 $5 $3,656 Specialty Seat 366 $14 $5,118 Expanded Shift 366 $25 $9,139
$99,663
Interest ExpenseLine of Credit interest accrued $0 Bond interest accrued $49,880
Total Interest Accrued $49,880
Bob's BicyclesPro Forma Balance Sheet
As of December 31, 2010
Assets
Current AssetsCash $414,527 (a.)Accounts Receivable, net $482,995 (b.)Raw Materials Inventory $99,663 (c.)Finished Good Inventory $128,285 (d.)
Total Current Assets $1,125,470
Property, Plant, and EquipmentBuilding $1,500,000 (e.)Equipment $1,687,000 (g.)Accumulated Depr - Building and Equipment ($937,500) (h.)
Total PPE $2,249,500
Total Assets $3,374,970
Liabilities and Stock Holder's Equity
Current LiabilitiesAccounts Payable $161,400 (i.)Interest Payable $0 (j.)Income Tax Payable $145,155 (k.)
Total Current Liabilities $306,555
Long-term LiabilitiesBonds Payables $997,600 (l.)Loan Payable $0 (m.)
Total Long-term Liabilities $997,600 Total Liabilities $1,304,155
Stockholder's EquityCommon Stock (100,000 shares outstanding) $1,000,000 (n.)Retained Earnings $1,070,815 (o.)
Total Stockholder's Equity $2,070,815
Total Liabilities and Stockholder's Equity $3,374,970 $0
Notes to the Balance Sheet
(a.) from the Cash Budget, ending balance
(b.) from the sales budget, the amounts from Q3 and Q4 that have not yet been collected:Quarter Sold Collected Remaining
Q3 $1,395,990 $1,298,271 $97,719 Q4 $1,447,062 $1,041,885 $405,177
$502,897 Less: Bad Debt $19,901
A/R, net $482,995
(c.) from income statement calculations
(d.) from the ending inventory budget
from prior year, no change
(e.) from prior year, no change
(g.) total from prior year, plus the current investment (shown in the cash budget.)2009 Q1 Q2 Q3 Q4 Total
$1,500,000 $50,000 $75,000 $40,000 $22,000 $1,687,000
(h.) total from prior year, plus the current year's depreciation (shown in the OH budget)2009 Q1 Q2 Q3 Q4 Total($875,000) ($15,625) ($15,625) ($15,625) ($15,625) ($937,500)
(i.) from the raw materials budget, the amount from Q4 that has not yet been paid:Quarter Purchased Paid Remaining
Q4 $645,601 $484,201 $161,400
(j.) Interest accrued (from the income statement), less interest paidInterest accrued $49,880 Interest paid $49,880 Interest Pay $0
(k.)Inc Tax Accrued $259,080 Inc Tax Paid ($113,925) Inc Tax Pay $145,155
(l.) from prior year, no change
(m.) the difference between loans taken out and repayments
the difference between income tax expense (income statement) and income tax paid (cash
CBE:The result here is a little different from the others. Why? Because you can end up owing additional taxes (an income tax payable) or you can end up receiving a refund. If you end up with a negative number, or a tax refund, remember to use that number as a positive deferred tax asset instead of using it as a negative income tax payable. Otherwise you end up with a balance sheet that looks really wierd.
Loans $0 Repayments $0 Loan Balance $0
(n.) from prior year, no change
(o.)RE, 2006 $506,295 + Net Income $604,520 - Dividends Paid ($40,000)
New RE $1,070,815
New retained earnings is the old retained earnings (2006 Bal Sheet) + net income - dividends
CBE:The result here is a little different from the others. Why? Because you can end up owing additional taxes (an income tax payable) or you can end up receiving a refund. If you end up with a negative number, or a tax refund, remember to use that number as a positive deferred tax asset instead of using it as a negative income tax payable. Otherwise you end up with a balance sheet that looks really wierd.
Notes to the Balance Sheet
CBE:The result here is a little different from the others. Why? Because you can end up owing additional taxes (an income tax payable) or you can end up receiving a refund. If you end up with a negative number, or a tax refund, remember to use that number as a positive deferred tax asset instead of using it as a negative income tax payable. Otherwise you end up with a balance sheet that looks really wierd.
CBE:The result here is a little different from the others. Why? Because you can end up owing additional taxes (an income tax payable) or you can end up receiving a refund. If you end up with a negative number, or a tax refund, remember to use that number as a positive deferred tax asset instead of using it as a negative income tax payable. Otherwise you end up with a balance sheet that looks really wierd.
Bob's BicyclesPro Forma Statement of Cash Flows
For Year ended December 31, 2010
Cash Flow from Operating ActivitiesNet Income $604,520 Adjustments:
Change in Accounts Receivable ($187,799)Change in Raw Materials Inventory ($48,250)Change in Finished Good Inventory ($12,225)Change in Accounts Payable $47,450 Change in Interest Payable $0 Change in Income Tax Payable $145,155 Depreciation $62,500 $6,831
Total Cash Flow from Operating Activities $611,351
Cash Flow from Investing ActivitiesCash Paid for Equipment ($187,000)
Total Cash Flow from Investing Activities ($187,000)
Cash Flow from Financing ActivitiesCash Received from Loans $0 Cash Paid on Loans $0 Cash Paid as Dividends ($40,000)
Total Cash Flow from Financing Activities ($40,000)($30,176)
Total Change in Cash $384,351 Cash Balance, 1/1/07 $0 Cash Balance, 12/31/07 $384,351
Calculating the Change in Cash from Asset Accounts
Beginning A/R $295,196 Ending A/R $482,995
Change to Cash from Accounts Receivable ($187,799)
Beginning Raw Materials Inv. $51,413 Ending Raw Materials Inv. $99,663
Change to Cash from Raw Materials ($48,250)
Beginning Finished Goods Inv. $116,060 Ending Finished Goods Inv. $128,285
Change to Cash from Finished Goods ($12,225)
Calculating the Change in Cash from Liabilities AccountsEnding A/P $161,400 Beginning A/P $113,950
Change to Cash from Accounts Payable $47,450
Ending Int Payable $0 Beginning Int Payable $0
Change to Cash from Interest Payable $0
Ending Inc Tax Payable $145,155 Beginning Inc Tax Payable $0
Change to Cash from Inc Tax Payable $145,155