MODERN Ltd.

February March April May

Revenue budget
Revenues (€) 200000 250000 500000 300000

Collections from customers budget

Cash 10% 50000 30000
Sales from 30 days 72% 180000 360000
Sales from 60 days 18% 36000 45000
Total month 266000 435000

Trade receivables budget

Month 90% 450000 270000
Previous month 18% 45000 90000
Total month 495000 360000

Purchases budget
+ Cost of good sold 60% 300000 180000
+ Ending stock 180000 180000
- Beginning stock 300000 180000
= Purchases 180000 180000

Disbursements from purchases budget

Month 300000 180000

Trade payables budget

Month 180000 180000

Other expenses budget

Salaries (20% sales) 20% 100000 60000
Other expenses (4% sales) 4% 20000 12000
Fixed expenses 40000 40000
Depreciation 2000 2000
Total 162000 114000

Other expenses payments budget

Salaries (20% sales) 100000 60000
Other expenses (4% sales) 20000 12000
Fixed expenses 40000 40000
Total 160000 112000

Budgeted statement of cash flow

Cash balance, opening 11000 277000
Collections from customers 266000 435000
(A) Total available cash 277000 712000

Payments material suppliers

Other expenses payments
Fixed assets payments
Dividends
(B) Total disbursements

Minimum cash desired 10000 10000

Total cash needed
Cash excess (deficiency)

Financing
Borrowing (at beginning)
Repayment (at end)
Interest 18%
(C) Total effects of financing

(A+B+C) Cash balance, closing

Budget income statement

Revenues 500000 300000
Cost of goods sold 60% 300000 180000
Margin 200000 120000
Salaries, wages, comm. 100000 60000
Other expenses 20000 12000
Contribution margin 80000 48000
Fixed costs 40000 40000
Depreciation 2000 2000
Earnings before interest 38000 6000
Financial expenses This is the expense
Net income 38000 6000

Budgeted balance sheet

Net fixed assets 150000 148000 146000
Ending stock 300000 180000 180000
Trade receivables 261000 495000 360000
Cash 11000 277000 712000
Total assets 722000 1100000 1398000
Share capital 382000 382000 382000
Net income 38000 6000
Debt
Interest
Suppliers 300000 180000 180000
Fixed assets suppliers 40000
Total Resources 722000 600000 568000
June July

300000 200000

30000 20000
216000 216000
90000 54000
336000 290000

270000 180000
54000 54000
324000 234000

180000 120000
120000
180000
120000

180000 120000

120000

60000 40000
12000 8000
40000 40000
2000 2000
114000 90000

60000 40000
12000 8000
40000 40000
112000 88000
 712000 1048000
336000 290000
1048000 1338000

10000 10000

300000
180000
120000
60000
12000
48000
40000
2000
6000

6000

144000
120000
324000
1048000
1636000
382000
6000

120000

508000
KLORS January February
Revenue budget
Sales (units) 200 220
Unit selling price 300 300
Revenues (€) 60000 66000

Production budget (units)

+ Sales 200 220
+ Closing stock 22 24
- Beginning stock 0 22
= Production 222 222

Purchases budget (raw material)

Standard input cost (€/kg) 30 30
kgs / unit 0.5 0.5
Raw material (kgs)
+ Needs (consumption) 111 111
+ Closing stock (two months) 232 253
- Beginning stock 0 232
= Purchases 343 132
Purchases (€) 10290 3960

Other expenses budget

Direct manufacturing labor 16650 16650
Energy 800 800
Depreciation 1200 1200
Total 18650 18650

Budgeted income statement

Revenues (€) 60000 66000
- Raw material cost 3000 3300
- Direct manufacturing labor cost 15000 16500
Contribution margin 42000 46200
Fixed costs
Energy 800 800
Depreciation 1200 1200
Operating profit 40000 44200

Budgeted closing stock

Raw material (leather) 6960 7590
Units (kgs) 232 253
Standard input cost (€/kg) 30 30
Finished goods (bags) 1980 2160
Units 22 24
Standard cost 90 90
March April May June

240 260 300 320

300 300 300 300
72000 78000 90000

240 260 300

26 30 32
24 26 30
242 264 302

30 30 30
0.5 0.5 0.5

121 132 151

283
253
151
4530

18150
800
1200
20150

72000
3600
18000
50400

800
1200
48400

8490
283
30
2340
26
90
SELB December January
Revenue budget
Sales (units) 200
Unit selling price 22
Revenues (€) 4400

Collections from customers budget

Cash 70% 3080
Sales from previous month 30% 4100
Total month 7180

Trade receivables budget

Trade receivables budget 1320

Production budget (units)

+ Sales 200
+ Closing stock (1 month) 220
- Beginning stock 150
= Production 270

Purchases budget (raw material)

Payments: cash
Standard input cost (€/kg) 2
kgs / u 3
Raw material (kgs)
+ Needs (consumption) 810
+ Closing stock (two months) 1500
- Beginning stock 0
= Purchases 2310
Purchases (€) 4620

Other expenses budget

Direct manufacturing labor 2000
Energy 1080
Depreciation 600
Total 3680

Other expenses payments budget

Direct manufacturing labor (next month)
Energy (2 months) 1800
Total
1800
Budgeted statement of cash flow
Cash balance, opening 3000
Collections from customers 7180
(A) Total available cash 10180

Raw material payments 4620

Direct labor cost payments 1800
Energy payments 0
Fixed assets payments
(B) Total disbursements 6420

Minimum cash desired 2000

Total cash needed
Cash excess (deficiency)

Financing
Borrowing short-term debt (at beginning)
Repayment short-term debt (at end)
Interest short-term debt
(C) Total effects of financing

(A+B+C) Cash balance, closing

Budget income statement

Revenues
Cost of goods sold
Contribution margin
Fixed costs
Depreciation
Direct manufacturing labor
Income before interest
Interest short-term debt
Net income

Budgeted balance sheet

Gross fixed assets 72000
- Accumulated depreciation 1600
Stocks (merchandise) 1500
Raw material
Finished goods 1500
Trade receivables 4100
Cash 3000
Total Assets 79000
Capital share 77200
Net income
Direct manufacturing labor 1800
Energy
Debt interest
Debt
Total resources 79000
February March April May June

220 240 260 280 300

22 22 22 22 22
4840 5280 5720 6160 6600

3388 3696 4004 4312 4620

1320 1452 1584 1716 1848
4708 5148 5588 6028 6468

1452 1584 1716 1848 1980

220 240 260 280 300

240 260 280 300
220 240 260 280
240 260 280 300

2 2 2 2
3 3 3 3

720 780 840 900

1620 1740
1500 1620
840 900
1680 1800

2000 2000
960 1040
600 633
3560 3673

2000 2000
1080
2000 3080
4708 5148

1680 1800
2000 2000
0 1080

3680 4880

2000 2000