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Particulers Budgeted Sales (Units/Salenders) Selling Price per Cubic Salender to WAPDA Total Sales


Methain Gas Suppliers Corporation Sales Budget For the Year Ended on December 31 ,2011 Quarter 1 2 100000 200000 15000 15000 1,500,000,000 Rs 3,000,000,000 Rs

Year 3 300000 15000 4,500,000,000 Rs 4 400000 15000 6,000,000,000 Rs 400,000 15000 6,000,000,000

Percentage of Sales Collected in the Period of the Sales Percentage of Sales Collected in the Period after the Sales Accounts Receivable, Beginning Balance First Quarter Sales Second Quarter Sales Third Quarter Sales Fourth Quarter Sales Total Cash collection

80% 20% Schedule of Expected Cash Collections Rs Nill 1,200,000,000 Rs Rs 300,000,000 2,400,000,000 . 2,700,000,000 Rs Rs Rs Rs Rs 1,500,000,000 400,000,000 4,500,000,000 4,800,000,000 11,200,000,000

Rs Rs Rs


. 40,000,000


600,000,000 3,600,000,000 _________ . 4,200,000,000

Rs Rs Rs

900,000,000 4,800,000,000 5,700,000,000

Note Cash Collection Summery 1500,000,000 * 80% 3,000,000,000 * 80% 4,500,000,000 * 80% 6,000,000,000* 80%

1500,000,000 * 20% 3000,000,000 * 20% 4500,000,000 * 20% 6000,000,000* 20%

The uncollected portion of the fourth quarter sales will appear as Accounts Receivable is the Balance Sheet at the end of the Year

Methain Gas Suppliers Corporation Budgeted Income Statement For the Year Ended on December 31 2011 Particulars Sales Cost of Goods Sold* Data From Sales Budget Sales Budget, Ending finished Goods Inventoy Amount Rs6,000,000,000 Rs5,010,452,800

Gross Margin Rs989,547,200 Selling and Administrative Expenses Selling & admin Expense Budget Rs74,400,000 Net operating Income Rs915,147,200 Dividend Expense Rs80,000 Net Income Rs915,067,200 add other Income Rs71,774,000 Total Net income Rs986,841,200.00 Note: Cost of goods Sold = 400,000 * 12526.132= 5,010,452,800 400,000 are the total units of salenders that will be sold to WAPDA Rs 12526.132 is the unit product cost at the finished goods inventory.

Methain Gas Suppliers Corporation Budgeted Balance Sheet For the Year Ended on December 31 2011

Current Assets
Cash Accounts Receivable Raw Material Inventory Finished Goods Inventory Total Current Assests Amount Rs2,812,194,000 Rs1,200,000,000 Rs500,000,000 Rs5,010,452,800 Rs9,522,646,800 Rs40,000,000 Rs30,000,000 Rs20,000,000 -Rs400,000 Rs89,600,000 a b c d

Fixed Assests
Plant & Equipment Land Building Accumulated Depreciation Plant & Equipment, Net e f g

Total Assets


Liabilities and Stockholders's Equity
Current Liabilities
Accoutns Payable (Raw Material) Equity Share Capital (10,000,000*500 each) Owners Equity Rs5,000,000,000 Rs844,155,600 Rs2,781,250,000 h

Common Stock (No Par) Net operating Income Total Liabilities and Shareholder's Equity Note

Rs986,841,200 Rs9,612,246,800

i j

Explanation of Balance sheet figures as appear
a b c d e f g h i j The ending cash balance as projected by the cash budget in Cash Schedule 20% of fourth quarter sales from schedule of sales (6,000,000,000*20% = 1,200,000,000 ) From the schedule of Direct Material budget the ending inventory will be 500,000,000 The ending finished goods inventory at the end of the year of Rs 5010452800 calculated by (400,000*12526.132) Land purchased for the plant installation and equipment of Rs 30,000,000 image is provided Building is purchased for the office work and storage for the Methane Salenders and raw material Accumulated Depreciation is being less from the cost of land,building and plant equipment Accoutns payable balance as appear due to purchase of plant equpment on credit basis. Amount of capital invested by the founders of the Corporation 211,038,900 each. Net operating income earned by sales of the Methane salenders to WAPDA.