Case 30.

1 Bright Paints Limited

Case 30.1 Bright Paints Limited

Mar

Apr

May

Jun

Jul

Aug

Sep

Pro Forma Profit & Loss Account

Sales
Purchases
Advertising
Rent
Depreciation
Wages
Sundry expenses
Total Expenses
PBT
Tax
PAT

1000
1250
170
50
12
180
260
1,922

1400
1700
190
50
12
180
260
2,392

1750
2000
220
50
12
180
260
2,722

2180
1800
250
50
12
180
270
2,562

2400
1700
350
50
12
190
280
2,582

2700
1700
380
50
12
190
280
2,612
88

922
0

992
0

972
0

382
0

182
0

922

992

972

382

182

0
88

1,000
900

1,400
1260

1,750
1575

2,180
1962

2,400
2160

2,700
2430

100
100
1,250
630

140
500
640
1,700
1250

175
900
1,075
2,000
1700

218
1260
1,478
1,800
2000

240
1575
1,815
1,700
1800

270
1962
2,232
1,700
1700

100

640

1,075

1,478

1,815

2,232

630
170
50
180
260

1250
190
50
180
260

2000
150
50
180
270

1800
350
50
190
280

1700
380
50
190
280

0
1,290

0
1,930

1700
220
50
180
260
8
0
2,418

0
2,650

0
2,670

0
2,600

1,190

1,290

1,343

1,172

855

368

24

1,214

1,904

3,247

4,419

5,274

1,214

1,904

3,247

4,419

5,274

5,642

Cash Forecast
Sales
Credit sales

90%

500

Collections:
Cash
Second month
Total Collections
Purchases
Payments
Total Collections (A)
Less: Disbursement
Purchases
Advertising
Rent
Wages
Sundry expenses
Delivery van (Capex)
Taxes
Total Disbursement (B)
Surplus/(Deficit) [A-B]
Opening cash balance
Total cash

10%

630

Case 30.2: Payal Plastics Limited

Case 30.2: Payal Plastics Limited

Sales forecasts
Sales variation

Sales
Credit sales

80%

260
260

210
210

160
160

240
240

200
200

160
160

200
200

Jan
240
192

Feb
280
224

Mar
320
256

Apr
260
208

May
210
168

Jun
160
128

Jul
240
192

Aug
200
160

Sep
160
128

Oct
200
160

48

56
120

64
140
72

185

213

199

52
160
84
48
344
161

42
130
96
56
324
126

32
105
78
64
279
146

48
80
63
52
243
151

40
120
48
42
250
123

32
100
72
32
236
129

40
80
60
48
228
56

111

128
37

119
43
37
199

97
40
43
179

76
32
40
148

87
25
32
145

91
29
25
145

74
30
29
133

77
25
30
132

344.0

324.0

279.0

243.0

250.0

236.0

198.8
42.0
15.5

178.9
39.0
13.0

147.6
32.0
10.5

144.8
40.0
14.5

145.0
32.0
12.5

133.3
28.0
10.5

10.4

8.4

6.4
1.6

9.6

8.0

6.4

Collections:
Cash
First month
Second month
Third month
Total Collections

20%
50%
30%
20%

Purchases (40%  sales (1)  60%  sales)  70%

Payments:
First month
Second month
Third month
Total Payment
Total Collections (A)

60%
20%
20%

Less: disbursement
Payment for purchases
Wages & salaries
Admin. & marketing exp. (2.5  5% of sales)
Power (4% of sales)
Interest (20  16%  12)
Taxes
Capital expenditure
Total Disbursement (B)
Surplus/(Deficit) [A-B]
Opening cash balance
Closing balance

2.5
269.2
74.8
1.4
76.2

35.0
274.3
49.7
76.2
125.9

6.0
35.0
239.1
39.9
125.9
165.8

6.0
208.9
34.1
165.8
199.9

197.5
52.5
200.0
252.5

184.2
51.8
252.4
304.2

Change sales vatriation to .9 (decrease in sales by 10% from original forecasts) or 1.1 (increase in sales by 10% from original forecasts) to see the
effects on collections, payments and cash balance.