Gilbert Company

Statement of Financial Position

December 31 20X4

Assets Equities

Current Assets Current liabilities

Cash 150,000 Accounts payable 140,000
Accounts Receivable 220,000 Taxes payable 156,000
Inventories 592,000 Current portion of long-term debt 83,000
Other current assets 23,000 Total current liabilities 379,000
Total current assets Long-term liabilities 576,000
Total liabilities 955,000
Long-term assets
Property, plant and Equity
equipment 2,475,000 Share capital 350,000
Less: Accumulated depreciation 850,000 Retained earnings 1,305,000
Net 1,625,000 Total 1,655,000
Total assets 1625000 Total Equities 2610000
 2015 2016 2017 2018
Estimated sales:
Units 6,400 6500 6600 6700
Price per unit 800 800 800 800

Finished goods inventory:

Beginning 900 units @ P500
Ending 1,000
Work in process inventory:
NONE

Raw materials:
Material
R S
Material required per unit of
finished product 3 units 5 units
Beginning inventory 2,200 4,000
Ending inventory 1,300 4,600
Unit cost P10 P30
Direct labor P146 per unit produced

Schedule 1
Sales Budget
2015 2016 2017 2018
Estimated sales:
Units 6,400 6500 6600 6700
Price per unit 800 800 800 800
Total Sales Revenue 5120000 5200000 5280000 5360000

Schedule 2
Production Budg
2015 2016 2017 2018
Units 6,400 6500 6600 6700
Add: Desired ending inventory 1,000 1,000 1,000 1,000
Total 7400 7500 7600 7700
Less: Beginning inventory 900 900 900 900
Units to be produced 6500 6600 6700 6800
Schedule 3

Raw Materials Purch

2015 2016
R S R S
Units required for production 6500 6600
3 19500 19800
5 32500 33000
Add: Desired ending inventory 1300 4600 1300 4600
Total units required 20800 37100 21100 37600
Less: Beginning inventory 2200 4000 2200 4000
Units to be purchased 18600 33100 18900 33600
Unit price 10 30 10 30
Total purchases 186000 993000 189000 1008000
1179000 1197000

Schedule 4
Direct Labo
2015 2016 2017 2018
Units required for production 6500 6600 6700 6800
Multiply by: Direct Labor cost per unit 146 146 146 146
Total budgeted direct labor costs 949000 963600 978200 992800
 2019 2020 2021 2022 2023 2024

6800 6900 7000 7100 7200 7300

800 800 800 800 800 800

Sales Budget
2019 2020 2021 2022 2023 2024

6800 6900 7000 7100 7200 7300

800 800 800 800 800 800
5440000 5520000 5600000 5680000 5760000 5840000

Production Budget
2019 2020 2021 2022 2023 2024
6800 6900 7000 7100 7200 7300
1,000 1,000 1,000 1,000 1,000 1,000
7800 7900 8000 8100 8200 8300
900 900 900 900 900 900
6900 7000 7100 7200 7300 7400
Raw Materials Purchases
2017 2018 2019 2020
R S R S R S R
6700 6800 6900 7000
20100 20400 20700 21000
33500 34000 34500
1300 4600 1300 4600 1300 4600 1300
21400 38100 21700 38600 22000 39100 22300
2200 4000 2200 4000 2200 4000 2200
19200 34100 19500 34600 19800 35100 20100
10 30 10 30 10 30 10
192000 1023000 195000 1038000 198000 1053000 201000
1215000 1233000 1251000 1269000

Direct Labor Budget

2019 2020 2021 2022 2023 2024
6900 7000 7100 7200 7300 7400
146 146 146 146 146 146
1007400 1022000 1036600 1051200 1065800 1080400
 2020 2021 2022 2023
S R S R S R S
7000 7100 7200 7300
21300 21600 21900
35000 35500 36000 36500
4600 1300 4600 1300 4600 1300 4600
39600 22600 40100 22900 40600 23200 41100
4000 2200 4000 2200 4000 2200 4000
35600 20400 36100 20700 36600 21000 37100
30 10 30 10 30 10 30
1068000 204000 1083000 207000 1098000 210000 1113000
1269000 1287000 1305000 1323000
 2024
R S
7400
22200
37000
1300 4600
23500 41600
2200 4000
21300 37600
10 30
213000 1128000
1341000
Overhead is estimated as follows:

Variable:
Indirect materials and supplies P5.85 per unit produced
Materials handling 9.07 per unit
Other indirect labor 5.07 per unit

Fixed:
Supervisor labor P175,000
Maintenance & repair 85,000
Plant administration 173,000
Utilities 87,000
Depreciation 280,000
Insurance 43,000
Property taxes 117,000
Other 41,000

Schedule 5

Budgeted Manufacturi
2015 2016 2017
Variable overhead: units needed to produce 6500 6600 6700
Indirect materials and supplies 5.85 38025 38610 39195
Materials handling 9.07 58955 59862 60769
Other indirect labor 5.07 32955 33462 33969
Total 129935 131934 133933

Fixed manufacturing overheard

Supervisor labor 175,000 175,000 175,000
Maintenance & repair 85,000 85,000 85,000
Plant administration 173,000 173,000 173,000
Utilities 87,000 87,000 87,000
Depreciation 280,000 280,000 280,000
Insurance 43,000 43,000 43,000
Property taxes 117,000 117,000 117,000
Other 41,000 41,000 41,000
Total 1001000 1001000 1001000
Total manufacturing overhead 1130935 1132934 1134933
Schedule 6

Budgeted
2015 2016 2017
Beginning work in process inventory - - -
Direct materials
Beginning inventory 142000 142000 142000
Purchases( Schedule 3) 1179000 1197000 1215000
Total 1321000 1339000 1357000
Less: Ending inventory 151000 151000 151000
Total Direct materials 1170000 1188000 1206000
Direct Labor ( Schedule 4) 949000 963600 978200
Manufacturing overhead( Schedule 5) 1130935 1132934 1134933
Total manufacturing cost 3249935 3284534 3319133
Less: Ending work in process inventory - - -
Cost of goods manufactured 3249935 3284534 3319133
Add: Beginning finished goods inventory 450000 450000 450000
Total available for sale 3699935 3734534 3769133
Less: Ending finished goods inventory 500000 500000 500000
Cost of sales 3199935 3234534 3269133
Budgeted Manufacturing Overhead
2018 2019 2020 2021 2022 2023 2024
6800 6900 7000 7100 7200 7300 7400
39780 40365 40950 41535 42120 42705 43290
61676 62583 63490 64397 65304 66211 67118
34476 34983 35490 35997 36504 37011 37518
135932 137931 139930 141929 143928 145927 147926

175,000 175,000 175,000 175,000 175,000 175,000 175,000

85,000 85,000 85,000 85,000 85,000 85,000 85,000
173,000 173,000 173,000 173,000 173,000 173,000 173,000
87,000 87,000 87,000 87,000 87,000 87,000 87,000
280,000 280,000 280,000 280,000 280,000 280,000 280,000
43,000 43,000 43,000 43,000 43,000 43,000 43,000
117,000 117,000 117,000 117,000 117,000 117,000 117,000
41,000 41,000 41,000 41,000 41,000 41,000 41,000
1001000 1001000 1001000 1001000 1001000 1001000 1001000
1136932 1138931 1140930 1142929 1144928 1146927 1148926
 Budgeted Statement of Cost of Sales
2018 2019 2020 2021 2022 2023 2024
- - - - - - -

142000 142000 142000 142000 142000 142000 142000

1233000 1251000 1269000 1287000 1305000 1323000 1341000
1375000 1393000 1411000 1429000 1447000 1465000 1483000
151000 151000 151000 151000 151000 151000 151000
1224000 1242000 1260000 1278000 1296000 1314000 1332000
992800 1007400 1022000 1036600 1051200 1065800 1080400
1136932 1138931 1140930 1142929 1144928 1146927 1148926
3353732 3388331 3422930 3457529 3492128 3526727 3561326
- - - - - - -
3353732 3388331 3422930 3457529 3492128 3526727 3561326
450000 450000 450000 450000 450000 450000 450000
3803732 3838331 3872930 3907529 3942128 3976727 4011326
500000 500000 500000 500000 500000 500000 500000
3303732 3338331 3372930 3407529 3442128 3476727 3511326
Marketing and Administrative expenses are budgeted as follows:
Variable Marketing Costs:
Sales commissions 40.625 per unit sold
Other marketing costs 16.250 per unit sold

Fixed Marketing Costs:

Sales salaries 100,000
Advertising 193,000
Other 78,000

Administrative costs (all fixed):

Administrative salaries 254,000
Data processing services 103,000
Legal and other professional fees 180,000
Depreciation- building, furniture and equipment 94,000
Taxes- other than income 160,000
Other 26,000

Schedule 7

Budgeted Marketing and

2015 2016
Variable overhead: units needed to produce 6,400 6500
Sales Commission 40.625 260000 264062.5
Other marketing costs 16.250 104000 105625
Total 364000 369687.5
Sales salaries 100,000 100,000
Advertising 193,000 193,000
Other 78,000 78,000
Total 371,000 371,000
Total Marketing Costs 735000 740687.5
Administrative cost (all fixed)
Administrative salaries 254,000 254,000
Data processing services 103,000 103,000
Legal and other professional fees 180,000 180,000
Depreciation- building, furniture and equipment 94,000 94,000
Taxes- other than income 108,000 108,000
Other 26,000 26,000
Total 765000 765000
Total marketing and administrative costs 1500000 1505687.5

Schedule 8 Cash Budget

2015 2016
Cash balance, January 1 150000 143,000
Add: Estimated receipts
Collection from customers 5185000 5,185,000
Sales of assets 25000 25,000
Total 5210000 5210000
Total cash available 5360000 5353000
Less: Estimated disbursement
Payment for material purchases 1164000 1212000
Direct labor 949000 963600
Manufacturing overhead 851000 852934
Marketing & Administrative expenses 1458000 1463688
Payment for income tax 252000 252000
Dividends 140000 140000
Reduction in long-term debt 83000 -
Aquisition of new assets 320000 320000
Total disbursement 5217000 5204221.5
Cash balance, December 31 143000 148779

Schedule 9 Budgeted Income Statement

2015 2016
Sales (Schedule 1) 5120000 5200000
Less: Cost of Sales (Schedule 6) 3200000 3234534
Gross Profit 1920000 1965466
Less: Marketing and Administrative costs ( Schedule 7) 1500000 1505688
Net operating profit 420000 459778
Less: Interest expense 52,000 46080
Net income before taxes 368000 413698
Less: Provision for income taxes (35%) 128,000 144794
Net income after taxes 240000 268904

Schedule 10 Budgeted Statement of Financial Positio

2016
Assets

Current assets
Cash ( Schedule 8) 143,000 148779
Accounts Receivable 155,000 140000
Inventories 651000 710862
Other current assets 23,000 23000
Total current assets 972000 1022641
Long-term assets
Property, plant and equipment 2495000 2515000
Less: Accumulated depreciation 949000 1048000
 Net 1546000 1467000
Total assets 2518000 2489641

Equities

Current liabilities
Accounts payable 155000 170000
Taxes payable 32000 176794
Current portion of long-term debt - -
Total current liabilities 187000 346794
Long-term liabilities 576000 576000
Total liabilities 763000 922794

Equity
Share capital 350000 350000
Retained earnings 1405000 1533904
Total Equities 2518000 2806698
Budgeted Marketing and Administrative Costs
2017 2018 2019 2020 2021 2022 2023
6600 6700 6800 6900 7000 7100 7200
268125 272187.5 276250 280312.5 284375 288437.5 292500
107250 108875 110500 112125 113750 115375 117000
375375 381062.5 386750 392437.5 398125 403812.5 409500
100,000 100,000 100,000 100,000 100,000 100,000 100,000
193,000 193,000 193,000 193,000 193,000 193,000 193,000
78,000 78,000 78,000 78,000 78,000 78,000 78,000
371,000 371,000 371,000 371,000 371,000 371,000 371,000
746375 752062.5 757750 763437.5 769125 774812.5 780500

254,000 254,000 254,000 254,000 254,000 254,000 254,000

103,000 103,000 103,000 103,000 103,000 103,000 103,000
180,000 180,000 180,000 180,000 180,000 180,000 180,000
94,000 94,000 94,000 94,000 94,000 94,000 94,000
108,000 108,000 108,000 108,000 108,000 108,000 108,000
26,000 26,000 26,000 26,000 26,000 26,000 26,000
765000 765000 765000 765000 765000 765000 765000
1511375 1517062.5 1522750 1528437.5 1534125 1539812.5 1545500
me Statement

ement of Financial Position

 2024
7300
296562.5
118625
415187.5
100,000
193,000
78,000
371,000
786187.5

254,000
103,000
180,000
94,000
108,000
26,000
765000
1551187.5