Semester 1: solution of existing project

Input data Cash Receipts

Projected unit sales 120 Meters Current price of raw material 510 euros Jan Feb Mar Apr May Jun
Sales
Collections
Number of months 6 months Labor per meter 160 hours
Units to be produced 120 meters Cost per hour 45 euros Total cash receipts from operations
Production overhead cost (per mont 10,000 euros
Number of days for payments General and adminstrative expense 5,000 euros
Customers 30 Cash Payments
Suppliers 30 Equipment 1,800,000 euros Jan Feb Mar Apr May Jun
Tax rate 40% Intrest rate long-term debt 9% Monthly material purchase (tons)
Sales price 20,000 meter
Initial balance sheet Purchase in €

Fixed Assets 1,200,000 Equity 900,000

Equipment 1,800,000 Capital 714,000 Payment for material (30 days)
Depreciation -600,000 Retained earnings past periods 186,000

Current Assets 400,000 Liabilities 700,000

Customers (Accounts receivable) 0 Long-term debt 700,000 Monthly labor cost
Current liabilities 0
Cash 400,000 Suppliers (Accounts payable) 0 Monthly overhead
Total Assets 1,600,000 Total Equity and Liabilities 1,600,000
General and administrative expense
Total production cost
Material (15 t x 120 = 1800 ) 1,800 Tons Operational taxes
- 1800 t at 510
Total payments for operations
Labor (120x160x45)
Cash Budget
Depreciation (fixed cost) Jan Feb Mar Apr May Jun
Total receipts
Overhead (fixed cost) Total payments

Net operational cash flow

Total costs of goods sold Intrest payments long-term debt
Tax credit on interest payments
Net cash flow after intrests long-term debt

Income statement (6 months) Beginning cash balance

Sales revenue Ending cash balance*
Cost of goods sold
Gross profit (margin)
General and administrative expenses
Operating profit (EBIT) New balance sheet (end of period)
Interest expense Fixed Assets Equity
Earnings before taxes (EBT) Equipment Capital
- taxes New equipment Retained earnings past periods
Earnings after taxes (EAT) Depreciation Retained earnings this period

Current Assets Liabilities

Customers (Accounts receivable) Long-term debt

Current Liabilities
Suppliers (Accounts payable)
Cash
Total Assets Total Equity and Liabilities