Production Budget

Jan Feb Mar

Budgeted Sales 2,500 4,000 5,000
Add: Desired Ending Inventory 1,100 1,300 900
Total Needs 3,600 5,300 5,900
Less: Beginning Inventory 1,000 1,100 1,300
Trailer Production 2,600 4,200 4,600

Purchases Budget
Jan Feb Mar
Trailer Production 2,600 4,200 4,600
Sheet Metal Needs per Trailer 30 30 30
Total Production Needs 78,000 126,000 138,000
Add: Desired Ending Inventory 63,000 69,000 42,000
Total Material Needs 141,000 195,000 180,000
Less: Beginning Inventory 39,000 63,000 69,000
Total Sheet Metal Purchases 102,000 132,000 111,000
Cost (per sq. yard) 6 13 13
Total Cost 612,000 1,716,000 1,443,000

Cash Budget
Jan Feb Mar
Cash Beginning Balance 100,000 100,000 100,000
Add: Cash Collections
Sales 2,500,000 4,000,000 5,000,000
Collected in the Same Month (25%) 625,000 1,000,000 1,250,000
Collections from the Last Month (10%) 213,100 250,000 400,000
Collections from Sales 2 Months Ago (60%) 863,400 1,278,600 1,500,000
Total Cash Available 1,801,500 2,628,600 3,250,000
Less: Cash Disbursements
Merchandise Purchases 850,000 870,000 1,320,000
Wages 624,000 1,008,000 1,104,000
Health, Light & Power 130,000 195,000 220,000
Equipment Rental 390,000 390,000 390,000
Equipment Purchases 300,000 300,000 300,000
Selling & Admin 400,000 400,000 400,000
Total Cash Disbursements 2,694,000 3,163,000 3,734,000
Excess (Deficiency) (892,500) (534,400) (484,000)
Financing:
Borrowings 992,500 634,400 584,000
Repayments - - -
Interest* - - -
Total Financing 992,500 634,400 584,000
Cash Balance Ending 100,000 100,000 100,000
* interest rate has been assumed as 0% as it is not given in the case.
Apr May Jun Jul Six Months (except July)
3,000 2,000 1,000 1,000 17,500
700 500 500 500
3,700 2,500 1,500 18,000
900 700 500 1,000
2,800 1,800 1,000 17,000

Apr May Jun Jul Six Months (except July)

2,800 1,800 1,000 1,000 17,000
30 30 30 30 30
84,000 54,000 30,000 30,000 510,000
27,000 15,000 15,000 15,000
111,000 69,000 45,000 525,000
42,000 27,000 15,000 39,000
69,000 42,000 30,000 486,000
13 13 13
897,000 546,000 390,000 5,604,000

Apr May Jun Six Months

100,000 100,000 100,000 100,000

3,000,000 2,200,000 1,100,000

750,000 550,000 275,000 4,450,000
500,000 300,000 220,000 1,883,100
2,400,000 3,000,000 1,800,000 10,842,000
3,750,000 3,950,000 2,395,000 17,275,100

1,110,000 690,000 420,000 5,260,000

672,000 432,000 240,000 4,080,000
135,000 1,100,000 1,100,000 2,880,000
340,000 340,000 340,000 2,190,000
300,000 300,000 300,000 1,800,000
400,000 400,000 400,000 2,400,000
2,957,000 3,262,000 2,800,000 18,610,000
793,000 688,000 (405,000) (1,334,900)

- - 505,000 2,715,900
(693,000) (588,000) - (1,281,000)
- - - -
(693,000) (588,000) 505,000 1,434,900
100,000 100,000 100,000 100,000