Judd's Reproductions

a.

2011

2011

October

2011

November

2012

December

2012

January

2012

February

2012

March

2012

April

2012

May

2012

June

2012

July

2012

August

2012

September

2012

October

2012

November

December

Unit Production and Sales

- Chairs

900

975

950

1020

1191

1179

1195

1200

1204

1194

1199

1222

1219

1207

1192

- Tables

175

188

201

200

237

243

250

252

255

242

253

243

248

244

255

90

102

95

109

120

119

126

122

125

123

121

127

126

126

119

- Total revenue

$499,500

$547,800

$541,900

$580,200

$667,500

$668,700

$690,800

$686,400

$695,300

$678,000

$685,300

$691,700

$693,800

$687,800

$682,100

- Cash sales: 25% of revenue

$124,875

$136,950

$135,475

$145,050

$166,875

$167,175

$172,700

$171,600

$173,825

$169,500

$171,325

$172,925

$173,450

$171,950

$170,525

- Credit card sales: 35% of rev.

$174,825

$191,730

$189,665

$203,070

$233,625

$234,045

$241,780

$240,240

$243,355

$237,300

$239,855

$242,095

$242,830

$240,730

$238,735

- Exporter sales: 40% of rev.

$199,800

$219,120

$216,760

$232,080

$267,000

$267,480

$276,320

$274,560

$278,120

$271,200

$274,120

$276,680

$277,520

$275,120

$272,840

- Bad Debts: 3% of export sales

$6,962

$8,010

$8,024

$8,290

$8,237

$8,344

$8,136

$8,224

$8,300

$8,326

$8,254

$8,185

- Cash Sales Discounts: 5% of cash sales

$7,253

$8,344

$8,359

$8,635

$8,580

$8,691

$8,475

$8,566

$8,646

$8,673

$8,598

$8,526

- Credit Card Fees: 3% of credit card sales

$6,092

$7,009

$7,021

$7,253

$7,207

$7,301

$7,119

$7,196

$7,263

$7,285

$7,222

$7,162

- Cabinets

Carpenter and Helper Hours

- Required carpenter hours
- Carpenters
- Helpers: 1.5 x number of carpenters
- Carpenter regular hours: 172 per carpenter
- Carpenter overtime hours

1562

1788.9

1793.1

1859

1842

1869.1

1820.6

1838.1

1858.3

1863.6

1848.8

1828.3

10

10

11

11

11

11

11

11

11

11

11

14

14

15

15

17

17

17

17

17

17

17

17

17

1548

1720

1720

1892

1892

1892

1892

1892

1892

1892

1892

1892

14

68.9

73.1

- 5% of regular carpenter hrs, must be > overtime hours

77.4

86

86

94.6

94.6

94.6

94.6

94.6

94.6

94.6

94.6

94.6

- Helper regular hours: 172 per helper

2408

2580

2580

2924

2924

2924

2924

2924

2924

2924

2924

2924

103.35

109.65

- From 3 months previous: 17% of export sales

$33,966

$37,250

$36,849

$39,454

$45,390

$45,472

$46,974

$46,675

$47,280

$46,104

$46,600

$47,036

- From 2 months previous: 50% of export sales

109,560

108,380

116,040

133,500

133,740

138,160

137,280

139,060

135,600

137,060

138,340

138,760

- From 1 month previous: 30% of export sales + 97% of credit card sales

249,003

266,602

306,716

307,268

317,423

315,401

319,490

311,541

314,895

317,836

318,801

316,044

- From current month: 95% of cash sales

137,798

158,531

158,816

164,065

163,020

165,134

161,025

162,759

164,279

164,778

163,353

161,999

52

330

120

400

680

592

889

$530,327

$570,764

$618,422

$644,286

$659,573

$664,218

$665,100

$660,155

$662,455

$666,458

$667,686

$664,727

$37,656

$43,760

$43,912

$45,408

$45,408

$45,408

$45,408

$45,408

$45,408

$45,408

$45,408

$45,408

33,712

38,290

38,423

40,936

40,936

40,936

40,936

40,936

40,936

40,936

40,936

40,936

- Supplies and other costs: $5 per carpenter hour

7,810

8,945

8,966

9,295

9,210

9,346

9,103

9,191

9,292

9,318

9,244

9,142

- Flexible support costs: $20 per carpenter hour

31,240

35,778

35,862

37,180

36,840

37,382

36,412

36,762

37,166

37,272

36,976

36,566

- Helper overtime hours

Cash Inflows

- Interest on cash balance: 3%/yr if previous mo. ending bal > $50,000
- Total cash inflows

Cash Outflows
- Carpenter wages: $24 per regular hr.; $36 per overtime hr.
- Helper wages: $14 per regular hr.; $21 per overtime hr.

- Maintenance costs: $15 per carpenter hour

23,430

26,834

26,897

27,885

27,630

28,037

27,309

27,572

27,875

27,954

27,732

27,425

- Wood costs: $30 per unit of wood

127,650

146,610

147,240

152,550

151,380

153,570

149,250

151,140

152,130

152,790

151,470

150,510

- Factory Rent: $150,000 per quarter

150,000

150,000

150,000

150,000

- Capacity-Related costs: $40,000 per month

40,000

40,000

40,000

40,000

40,000

40,000

40,000

40,000

40,000

40,000

40,000

40,000

- Administrative Salaries: $25,000 per month

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

- Selling Costs: $30,000 per month

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

- Advertising Expenditures: $50,000 per month

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

- Shipping costs

43,015

49,470

49,545

51,185

50,850

51,510

50,245

50,765

51,270

51,415

50,975

50,520

- Flexible selling costs: 6% of product list prices

34,812

40,050

40,122

41,448

41,184

41,718

40,680

41,118

41,502

41,628

41,268

40,926

1,242

952

273

747

45,000

55,000

$679,325

$535,978

$536,917

$701,160

$549,185

$552,906

$749,343

$547,891

$550,578

$701,721

$549,009

$546,432

- Interest on line of credit: 10%/yr based on last month's bal.

- Mach. purch.: $5000 x no. of carpenters (Jan. and July)
- Total cash outflows

Cash Flow Analysis

- Opening cash

$50,000

$50,000

$50,000

$50,000

$50,000

$70,806

$182,118

$97,875

$210,139

$322,016

$286,753

$405,429

-148,998

34,785

81,505

-56,873

110,388

111,312

-84,243

112,264

111,877

-35,263

118,677

118,295

- Cash before financing

-98,998

84,785

131,505

-6,873

160,388

182,118

97,875

210,139

322,016

286,753

405,429

523,724

- Opening line-of credit

148,998

114,213

32,709

89,582

- Line-of-credit increase

148,998

56,873

- Line-of-credit payment

34,785

81,505

89,582

148,998

114,213

32,709

89,582

50,000

50,000

50,000

50,000

50,000

70,806

182,118

97,875

210,139

322,016

286,753

405,429

523,724

55,000

- Net cash flow: cash inflows - cash outflows

- Line of credit closing balance

- Ending cash: $50,000 minimum
Depreciation
- Machinery, Jan 1, 2007
- Purchases
- Depreciation expense: 10% of year-end balance
- Machinery, Dec 31, 2007
Accounts Receivable
- 12/31/07 bal: 97% of Dec. credit card sales + 97%, 67%, and 17% of
Dec., Nov., and Oct. export sales, respectively

$360,000
45,000

Total

$8,107,600
$2,026,900
$2,837,660
$3,243,040
$97,291
$101,345
$85,130

$551,317
1,621,520
3,725,442
1,925,555
3,063

$534,000
478,849
108,859
435,436
326,577
1,786,290
600,000
480,000
300,000
360,000
600,000

600,765
486,456
3,213
100,000
$7,200,445

$360,000
100,000
(46,000)
$414,000

$727,737

January

$47,178
137,560
313,425

February

$46,770
136,420

March

$46,383

150 net interest outflow

Judd's Reproductions
b. Cash sales to exporters --> 5% x 40% drop in sales across products

October

November December

January

February

March

Unit Production and Sales

- Chairs

900

975

950

1000

1167

1155

- Tables

175

188

201

196

232

238

- Cabinets

90

102

95

107

118

117

- Total revenue

$499,500

$547,800

$541,900

$569,000

$654,600

$655,800

- Cash sales: (25%+38%)/98% of revenue

$124,875

$136,950

$135,475

$365,786

$420,814

$421,586

- Credit card sales: 35% /98% of rev.

$174,825

$191,730

$189,665

$203,214

$233,786

$234,214

- Exporter sales: 40% of rev. in 2011; all cash in 2012

$199,800

$219,120

$216,760

$0

$0

$0

- Bad Debts: 3% of export sales

- Cash Sales Discounts: 5% of cash sales
- Credit Card Fees: 3% of credit card sales

$0

$0

$0

$18,289

$21,041

$21,079

$6,096

$7,014

$7,026

Carpenter and Helper Hours

- Required carpenter hours
- Carpenters
- Helpers: 1.5 x number of carpenters
- Carpenter regular hours: 172 per carpenter
- Carpenter overtime hours

1532

1754.8

1759

10

10

14

14

15

15

1548

1720

1720
39

34.8

- 5% of regular carpenter hrs, must be > overtime hours

77.4

86

86

- Helper regular hours: 172 per helper

2408

2580

2580

52.2

58.5

- From 3 months previous: 17% of export sales

$33,966

$37,250

$36,849

- From 2 months previous: 50% of export sales

109,560

108,380

- From 1 month previous: 30% of export sales + 97% of credit card sales

249,003

197,118

226,772

- From current month: 95% of cash sales

347,496

399,774

400,506

166

706

$740,025

$742,688

$664,834

$37,152

$42,533

$42,684

33,712

37,216

37,349

- Helper overtime hours

Cash Inflows

- Interest on cash balance: 3%/yr if previous mo. ending bal > $50,000
- Total cash inflows

Cash Outflows
- Carpenter wages: $24 per regular hr.; $36 per overtime hr.
- Helper wages: $14 per regular hr.; $21 per overtime hr.
- Supplies and other costs: $5 per carpenter hour

7,660

8,774

8,795

- Flexible support costs: $20 per carpenter hour

30,640

35,096

35,180

- Maintenance costs: $15 per carpenter hour

22,980

26,322

26,385

- Wood costs: $30 per unit of wood

125,190

143,790

144,420

- Factory Rent: $150,000 per quarter

150,000

- Capacity-Related costs: $40,000 per month

40,000

40,000

40,000

- Administrative Salaries: $25,000 per month

25,000

25,000

25,000

- Selling Costs: $30,000 per month

30,000

30,000

30,000

- Advertising Expenditures: $50,000 per month

50,000

50,000

50,000

- Shipping costs

42,185

48,515

48,590

- Flexible selling costs: 6% of product list prices

34,140

39,276

39,348

45,000

$673,659

$526,522

$527,751

$50,000

$116,366

$332,532

66,366

216,166

137,084

- Cash before financing

116,366

332,532

469,616

- Opening line-of credit

- Line-of-credit increase

- Interest on line of credit: 10%/yr based on last month's bal.

- Mach. purch.: $5000 x no. of carpenters (Jan. and July)
- Total cash outflows

Cash Flow Analysis

- Opening cash
- Net cash flow: cash inflows - cash outflows

- Line-of-credit payment

50,000

116,366

332,532

469,616

- Line of credit closing balance

- Ending cash: $50,000 minimum
Depreciation
- Machinery, Jan 1, 2007

$360,000

- Purchases

45,000

- Depreciation expense: 10% of year-end balance

- Machinery, Dec 31, 2007
Accounts Receivable
- 12/31/07 bal: 97% of Dec. credit card sales + 97%, 67%, and 17% of
Dec., Nov., and Oct. export sales, respectively
Item Data
Price
Carpenter hours
Units of wood
Packaging & shipping costs

Chairs

Tables

Cabinets

$200

$900

$1,800

0.4

2.5

15

$15

65

$135

Add new carpenters if projected monthly overtime exceeds 5% of total regular carpenter hours available.

Shareholder's equity, Jan. 1, 2007

$985,008

April

May

June

July

August

September

October

November December

1171

1176

1180

1170

1175

1198

1195

1183

1168

245

247

250

237

248

238

243

239

250

January

Total

123

120

123

121

119

124

123

123

117

$676,100

$673,500

$682,400

$665,100

$672,400

$677,000

$679,100

$673,100

$669,200

$7,947,300

$434,636

$432,964

$438,686

$427,564

$432,257

$435,214

$436,564

$432,707

$430,200

$5,108,979

$241,464

$240,536

$243,714

$237,536

$240,143

$241,786

$242,536

$240,393

$239,000

$2,838,321

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$21,732

$21,648

$21,934

$21,378

$21,613

$21,761

$21,828

$21,635

$21,510

$255,449

$7,244

$7,216

$7,311

$7,126

$7,204

$7,254

$7,276

$7,212

$7,170

$85,150

1818.9

1807.9

1835

1786.5

1804

1818.2

1823.5

1808.7

1794.2

11

11

11

11

11

11

11

11

11

17

17

17

17

17

17

17

17

17

1892

1892

1892

1892

1892

1892

1892

1892

1892

94.6

94.6

94.6

94.6

94.6

94.6

94.6

94.6

94.6

2924

2924

2924

2924

2924

2924

2924

2924

2924

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

227,188

234,220

233,320

236,403

230,410

232,939

234,532

235,260

233,181

2,753,172

0
231,830

412,904

411,316

416,751

406,186

410,644

413,454

414,736

411,072

408,690

4,853,530

1,049

917

1,177

1,437

1,189

1,439

1,700

1,590

1,854

13,224

$641,141

$646,453

$651,248

$644,026

$642,243

$647,832

$650,968

$647,921

$643,725

$45,408

$45,408

$45,408

$45,408

$45,408

$45,408

$45,408

$45,408

$45,408

$531,041

40,936

40,936

40,936

40,936

40,936

40,936

40,936

40,936

40,936

476,701

9,095

9,040

9,175

8,933

9,020

9,091

9,118

9,044

8,971

106,714

36,378

36,158

36,700

35,730

36,080

36,364

36,470

36,174

35,884

426,854

27,284

27,119

27,525

26,798

27,060

27,273

27,353

27,131

26,913

320,141

149,280

148,560

150,750

146,430

148,320

148,860

149,520

148,200

147,690

1,751,010

150,000

150,000

150,000

600,000

40,000

40,000

40,000

40,000

40,000

40,000

40,000

40,000

40,000

480,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

300,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

360,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

600,000

50,095

49,895

50,555

49,290

49,810

50,180

50,325

49,885

49,565

588,890

40,566

40,410

40,944

39,906

40,344

40,620

40,746

40,386

40,152

476,838

55,000

100,000

$694,041

$542,525

$546,993

$743,430

$541,978

$543,732

$694,875

$542,163

$540,519

$7,118,188

$469,616

$416,716

$520,644

$624,899

$525,495

$625,759

$729,859

$685,952

$791,710

-52,900

103,928

104,255

-99,404

100,265

104,100

-43,907

105,758

103,206

416,716

520,644

624,899

525,495

625,759

729,859

685,952

791,710

894,916

416,716

520,644

624,899

525,495

625,759

729,859

685,952

791,710

894,916

55,000

$360,000
100,000
(46,000)
$414,000

$231,830

-13,224

February

March

BALANCE SHEET, DEC. 31,2012

$0

Cash
Accounts Receivable
Machinery and Equipment
$0 Total Assets

$894,916
231,830
414,000
$1,540,746

Bank Loan
Owner's Equity
Total
Liabilities and

INCOME STATEMENT, DEC. 31,

2012
Revenue
Chairs
Tables
Cabinets
Flexible Resource Expenses
Carpenters
Helpers
Maintenance
Flexible Support
Selling
Shipping
Supplies
Wood

$2,787,600
$2,576,700
$2,583,000

$7,947,300

$531,041
476,701
320,141
426,854
476,838
588,890
106,714
1,751,010

$4,678,188

net interest outflow

Contribution Margin
Capacity-Related Resource
Expenses
Administrative Staff
Depreciation
Factory Rent
Selling
Other Factory
Other Expenses
Advertising Costs
Bad Debts
Cash Sales Discounts
Credit Card Fees
Net Interest Charges
Before Tax Income

$3,269,113

300,000
46,000
600,000
360,000
480,000

1,786,000

600,000
$0
$255,449
$85,150
-13,224

927,375
$555,738

$0
1,540,746
$1,540,746

Judd's Reproductions
b. Cash sales to exporters --> 5% x 40% drop in sales across products
Unit Production and Sales
Cabinets
Tables
Chairs
Total revenue
Cash sales: (25%+38%)/98% of revenue
Credit card sales: 35% /98% of rev.
Exporter sales: 40% of rev. in 2011; all cash in 2012
Bad Debts: 3% of export sales
Cash Sales Discounts: 5% of cash sales
Credit Card Fees: 3% of credit card sales
Carpenter and Helper Hours
Required carpenter hours
Carpenters
Helpers: 1.5 x number of carpenters
Carpenter regular hours: 172 per carpenter
Carpenter overtime hours
5% of regular carpenter hrs, must be> overtime hours
Helper regular hours: 172 per helper
Helper overtime hours
Cash Inflows
From 3 months previous: 17% of export sales
From 2 months previous: 50% of export sales
From 1 month previous: 30% of export sales + 97% of credit card sales
From current month: 95% of cash sales
Interest on cash balance: 3%/yr if previous mo. ending bal> $50,000
Total cash inflows
Cash Outflows
Carpenter wages: $24 per regular hr.; $36 per overtime hr.
Helper wages: $14 per regular hr.; $21 per overtime hr.
Supplies and other costs: $5 per carpenter hour
Flexible support costs: $20 per carpenter hour
Maintenance costs: $15 per carpenter hour
Wood costs: $30 per unit of wood
Factory Rent: $150,000 per quarter
Capacity Related costs: $40,000 per month
Administrative Salaries: $25,000 per month
Selling Costs: $30,000 per month
Advertising Expenditures: $50,000 per month
Shipping costs
Flexible selling costs: 6% of product list prices
Interest on line of credit: 10%/yr based on last month's bal.
Mach. purch.: $5000 x no. of carpenters (Jan. and July)
Total cash outflows
Cash Flow Analysis
Opening cash
Net cash flow: cash inflows - cash outflows
Cash before financing
Opening line-of credit
Line-of-credit increase
Line-of-credit payment
Line of credit closing balance

Ending cash: $50,000 minimum

Depreciation
Machinery, Jan 1, 2007
Purchases
Depreciation expense: 10% of year-end balance
Machinery, Dec 31, 2007
Accounts Receivable
12/31/07 bal: 97% of Dec. credit card sales + 97%, 67%, and 17% of Dec., Nov., and Oct. export sales,
respectively
Item Data
Price
Carpenter hours
Units of wood
Packaging & shipping costs
Add new carpenters if projected monthly overtime exceeds 5% of total regular carpenter hours available.

Shareholder's equity, Jan. 1, 2007

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