Rafael Luis C.

Pamonag May 15, 2021

BSBA-2B MWF (4PM-5PM)
FM121: Financial Analysis and Reporting Prof: Mr. Francisco A. Baraquel
Midterm Examination

1. Cash Forecasting
HELEN BOWERS
Cash Budget Forecasting
From July-December 2018

July 2018 August 2018 September 2018 October 2018 November 2018 December 2018
Beginning cash 132,000 201,300 387,600 (65,100) 67,200 208,500
Add: cash collection
From current month sales (10%) 36,000 54,000 72,000 36,000 36,000 9,000
From last month sales (75%) 135,000 270,000 405,000 540,000 270,000 270,000
From second last month sales (15%) 27,000 27,000 54,000 81,000 108,000 54,000
Total cash available 330,000 552,300 918,600 591,900 481,200 541,500
Less: cash payments
For labour & raw payments 90,000 126,000 882,000 306,000 234,000 162,000
General & Admin expenses 27,000 27,000 27,000 27,000 27,000 27,000
Lease payments 9,000 9,000 9,000 9,000 9,000 9,000
Misc Expenses 2,700 2,700 2,700 2,700 2,700 2,500
Income tax payments ------- -------- 63,000 ------ ----- 63,000
Progress payments for design studio ------- ------ -------- 180,000 ------- -------
Total payments 128,700 164,700 983,700 524,700 272,700 263,700
Ending cash balance 201,300 387,600 (65,100) 67,200 208,500 277,800
Minimum required balance 90,000 90,000 90,000 90,000 90,000 90,000
Excess cash or Need to borrow 111,300 297,600 (155,100) (22,800) 118,500 187,800

2. Cash Flow Statements

GYWNETT CORPORATION
Statement of Cash Flow (Indirect Method)
For the year ended December 31, 2017

Cash flows from Operating Activities

Net income 186,000
Add: Depreciation 246,000
Less:Gain on sale of Machinery (4,000)
Less:Increase in Account receivables (111,000)
Less: increase in inventories (218,000)
Add:increase in accounts payable 103,000
Less:decrease in taxes payable (25,000)
Add: increase in other short term payable 92,000
Total operating activities 269,000

Cash flows from investing activities

Sale of machinery 34,000
Purchase of land (12,000)
Purchase of machine (200,000)
Total investing activities (178,000)

Cash flow from financing activities

Issue of common stock 17,000
Payment of bonds payable (17,000)
Dividend paid (74,000)
Total financing activities (74,000)

Total cash generated 17,000

Add: beginning cash balance 175,000
Ending cash balance 192,000
3. Inventory Valuation

Given,
Ending inventory units is 60,000
Cost of units available is ₱1,452,100
Cost of goods sold is ₱1,164,100
Gross profit is ₱935,900

#1.

Computing sales value as:

Particulars Amount (₱)

Cost of goods sold during the month July 1,164,100
Add: Gross profit 935,900
Sales value 2,100,000

Computing ending inventory value as:

Particulars Amount (₱)

Cost of units 1,452,100
Less: Cost of goods sold during July 1,164,100
Ending inventory value 288,000

Computing opening inventory value as:

Particulars Amount (₱)

Cost of units 1,452,100
Less: Total purchases 1,042,100
Opening inventory value 410,000

Working:

Purchases Amount (₱)

July 5 280,500
July 11 265,000
July 15 247,500
July 16 249,100
Total purchases 1,042,100
Computing the number of units as:

Opening inventory (A) 410,000

Beginning inventory cost (B) 4.00 per unit
Units (A/B) 102,500

#2.

Computing units sold as:

Particulars Quantities
Beginning inventory 102,500
Add: Purchases 200,000
Aggregate availability 302,500
Less: Ending inventory 60,000
Cost of goods sold 242,500

#3.

Computing unit cost of inventory as:

Particulars Amount
Value of ending inventory (A) 288,000
Ending inventory (B) 60,000
Unit cost 4.8