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Case Three
CHEF’S TOOLKIT INC.
Cash Budgeting
企业现金需求分析和预算
Case Explanation: cash budgeting
 History: J efferys, invention of Pasta server
 Production: data
 Marketing: data
 Financial Implication: data
 Data: Composition of Canadian Households;
Balance sheet(J uly 15, 1994)
J efferys Personal balance sheet (J uly 15, 1994)
Production Schedule in Unit
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Study Questions
Q1:What is the Case? (1)event?(2)Companies?(3)Persons?(4)Time? What
is the problem?(5)Why is the problem?(6)Possible Solutions?
Q2:Analyses (1) Background of Chef’s Toolkit Inc.
? (2) CV of managers? (3)What is the invention? (4)Company Size-up:
production, marketing, and financial status?
Q3:Budgeting(monthly sales : 10,000; 5,000; 30,000): production
schedule, cash budget, Pro-forma income statement, Pro-forma balance
sheet
Q4:How can the firm avoid loss? Break –even calculation?
Q5: How much money do the firm need for financing? Should Dale Raid
invest? What are his risks?
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Case Summary(案例)
Mr. Dale Reid
Private Investor
Mr. Peter
J effery
President of
Chef’s Toolkit
Inc.
Obtain funds to start manufacturing and
marketing a new pasta server.
风险投资家
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Case Summary(案例)
Produce
Sell
Pasta Server Chef’s Toolkit Inc. Chef or Housewife
意大利通心粉
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Objectives(目标)
 Produce projected income
statements, balance sheets,
and cash flow statement up
to J uly 31, 1995.
 Obtain fund fromDale Reid.
预计财务报告
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Why Budget?
If you know where you are going,
you’re more likely to get there….
 Plan
 Perform
 Evaluate
 Report
预算
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Preparation of the Budget for a Manufacturing
Organization
销售预算
生产预算
成本和费用预算
现金预算
预计的财务报告
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Preparation of the Cash Budget for Chef’s Toolkit
Inc.
Production Schedule
Cash Budget
Pro-forma income statement Pro-forma balance sheet
生产计划
现金预算
预计的利润表 预计的资产负债表
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Analyses(分析)
 Background of Chef’s Toolkit Inc. (背景)
 CVs of Peter and Sally J effery (简历)
 Invention: Pasta Server (发明)
 Production(生产)
 Marketing(销售)
 Financial Status(财务状况)
 Budgeting(预算)
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Financial Status(财务状况)
 Dale Reid: invest $85,000 for 50 percent of
ownership.(出资)
 J efferys: can not invest any more personal
funds.
 Monthly Sales(月销售预计): 10,000 unit,
5,000 unit, 30,000 units.
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Budgeting(预算)
 Prepare a monthly production schedule
 Prepare a monthly cash budget
 Prepare income statement
 Prepare balance sheets
 Fiscal year-end: J uly 31, 1995
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Monthly production schedule(生产计
划)
Beginning I nventory Total
+Production
-Sales
-Promotion
End I nventory Total
-Home
Warehouse
期初存货
期末存货
生产
销售
促销
家中存货
仓库存货
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Direct Material Budget(成本预算)
Units x Direct Materials cost(产量x生产成本)
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The Cash Budget(现金预算)
 The Cash Budget is a projection of the cash
an organization will receive and the cash it
will pay out.(现金流入-现金流出)
 Shall we consider the depreciation?(折旧)
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Cash Budgets
Cash Receipts
-Cash Disbursements
Change in Cash
+Beginning Cash
Net Cash Flow
Required Financing:
Beginning
- Net Cash Flow
Financing Shortfall
现金流入
现金流出
现金变动
期初现金
融资需求
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 Reports on profitability of business
Revenues
minus
Expenses
Net income
equals
If expenses >
revenue = net
loss
收入
费用
净利润 亏损
Pro-forma income statement
(预计利润表)
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Reports the entity’s assets, liabilities, and owner’s
equity as of a specific date
Balance Sheet
Equity
Liabilities
Assets
资产
负债
所有者权益
Pro-forma balance sheet(预
计资产负债表)
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Do it using Excel
 Monthly Sales: 5,000 unit
 Monthly Sales: 30,000 units
a larger production mold.
- Capital cost: $62,000, payable in three
monthly installments.;
- Double production capacity;
- $0.35 per unit costs
- Depreciation: $0.062 per unit
- Inventory: $0.848 per unit
 How can the firm avoid loss?
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Break-even Calculations (盈亏平衡
点)
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What Happened (结果)
 The J effery received $75,000 in
financing from Dale Reid.(出资)
 Product Sales in the first two years
were below the 10,000 unit level.
 The firm filed for bankruptcy.(破产)