PREMIUM SUPPLIES LIMITED

SALES BUDGET
WINDOWS
Expected sales in units
Unit selling price
Total Sales
DOORS
Expected sales in units
Unit selling price
Total Sales
GRAND TOTAL

Q4-2011
50000
$1,000
$50,000,000

Q1-2012
51000
$1,000
$51,000,000

20000
$5,000
$100,000,000
$150,000,000

21000
$5,000
$105,000,000
$156,000,000

SCHEDULE OF CASH COLLECTION FROM CUSTOMERS

Cash Sales
Sales on Credit

50%
50%

Q4-2011
$75,000,000
$75,000,000
Q1-2012

RECEIPTS FROM
DEBTORS:
received:
In the month
of sale
One month
after sale
Cash Sales
TOTAL SALES RECEIPTS

80%

$62,400,000

20%

$15,000,000
$78,000,000
$155,400,000

PRODUCTION BUDGET

Windows
Bugeted Sales
in units
Desired
ending
inventory
Total units needed
Beginning inventory
in units
Units to be produced

10%

Q4-2011
50000

Q1-2012
51000

5000

5100

55000

56100

-----55000

5000
51100

Q4-2011
20000

Q1-2012
21000

2000

2100

22000

23100

---22000

2000
21100

DOORS
Bugeted Sales
in units
Desired
ending
inventory
Total units needed
Beginning inventory
in units
Units to be produced

PRODUCTION BUDGET FOR DOORS(Q1 OF 2013)

10%

Budgeted Sales
in units
Desired
ending inv
Total units needed
Beginning inventory
in units
Units to be produced

25000
10%

2500
27500
2400
25100

PRODUCTION BUDGET FOR WINDOWS(Q1 OF 2013)

Budgeted Sales
in units
Desired
ending inv
Total units needed
Beginning inventory
in units
Units to be produced

55000
10%

5500
60500
5400
55100

DIRECT MATERIAL BUDGET FOR WOOD

WINDOWS
Units to be
Produced
Material
Requirent
Quantity of
DM needed
for production
Desired
ending inv
Total Quantity
of DM needed
Beginning inv
Quantity of
DM to be
purchased
Price per unit
Purchases

10%

Q4-2011

Q1-2012

50100

51100

0.5

0.5

25,050.00

25550

2505

2555

27555

28105
2455

2505
25600

25100

$150
3,765,000.00

$150
3,840,000.00

DOORS
Units to be
Produced
Material
Requirent
Quantity of
DM needed
for production
Desired
ending inv
Total Quantity
of DM needed
Beginning inv
Quantity of
DM to be
purchased
Price per unit
Purchases
GRAND PURCHASES
FOR WOOD

10%

Q4-2011

Q1-2012

20100

21100

10

10

201000

211000

20100
221100

21100
232100

19100

20100

202000

212000

$150
$30,300,000
34,065,000.00 $

$150
$31,800,000
35,640,000.00

DIRECT MATERIAL FOR GLASS

Windows
Units to be
Produced
Material
Requirent
Quantity of
DM needed
for production
Desired
ending inv
Total Quantity
of DM needed
Beginning inv
Quantity of
DM to be
purchased
Price per unit
Purchases

10%

Q4-2011

Q1-2012

50100

51100

50100

51100

5010

5110

55110

56210

4910
50200

5010
51200

$250
$12,550,000

$250
$12,800,000

DOORS
Units to be
Produced
Material
Requirent
Quantity of
DM needed
for production
Desired
ending inv
Total Quantity
of DM needed
Beginning inv
Quantity of
DM to be
purchased
Price per unit
Purchases
GRAND PURCHASES
FOR GLASS

Q4-2011
20100

10%

Q1-2012
21100

0.2

0.2

4020

4220

402

422

4422

4642

382
4040

402
4240

$250
$1,010,000
$13,560,000

$250
$1,060,000
$13,860,000

DIRECT LABOUR BUDGET

Q1-2012
72200

Units to be produced
Labour hour per unit
Total labour hour
needed for production
Standard Labour hour
per hour
TOTAL LABOUR COST

0.1
7220
$400
$

2,888,000.00

SCHEDULE OF CASH DISBURSEMENT TO SUPPLIERS FOR DIRECT MATERIALS

$47,625,000.00 $

Q1-2012
49,500,000.00 $

Q2-2012
51,375,000.00

In the month
of purchase

70% $

34,650,000.00 $

35,962,500.00

one month
after purchase
TOTAL PAYMENT

30% $

14,287,500.00 $

14,850,000.00

48,937,500.00 $

50,812,500.00

Purchases
Payments to
creditors:

MANUFACTURING BUDGET
Q1-2012
Total labour hours needed
for production
Variable overhead rate
per unit
Total Variable
Fixed overhead production
Total Manufacturing Overhead

Q2-2012
7220

$
$
$

Q3-2012
7420

200
1,444,000.00 $
2,700,000.00 $
4,144,000.00 $

7620

200
1,484,000.00 $
2,750,000.00 $
4,234,000.00 $

200
1,524,000.00
2,910,000.00
4,434,000.00

CASH BUDGET
Q1
RECEIPTS
From Customers
TOTAL RECEIPTS
PAYMENTS
To suppliers of materials

Q2

Q3

$155,400,000
$155,400,000

$161,400,000
$161,400,000

$167,400,000
$167,400,000

48,937,500.00 $

50,812,500.00 $

52,687,500.00

Selling&Administrative expenses
Labour Cost
Production Overhead
Dividends
TOTAL PAYMENTS
NET INFLOW/(OUTFLOW
OPENING CASH BALANCE
EXCESS CASH (DEFICIENCY)
FINANCING
Borrowings
Less Repayments
Less Interest Payments
Ending Cash Balance

$
$
$
$
$

9,535,841.12
$2,888,000.00
3,744,000.00
2,500,000.00
67,605,341.12
$87,794,658.88
10,695,000.00
$98,489,658.88

9,758,317.76
$2,968,000.00
$
3,834,000.00
$
2,500,000.00
$ 69,872,817.76
$91,527,182.24
$ 105,614,658.88
$197,141,841.12

$
$
$
$
$

$ 10,000,000.00
$
2,500,000.00 $
2,500,000.00 $
$
375,000.00 $
375,000.00 $
$ 105,614,658.88 $ 194,266,841.12 $

9,980,794.39
$3,048,000.00
4,034,000.00
2,500,000.00
72,250,294.39
$95,149,705.61
194,266,841.12
$289,416,546.73

2,500,000.00
375,000.00
286,541,546.73

COST OF GOODS MANUFACTURED BUDGET

Opening stock of raw materials
Purchases
Goods Available
Less Closing Stock
Raw Materials Consumed
Direct Labour
Manufacturing Overhead
Total Manufacturing Cost
Add Opening Finished Goods
Less Closing Finished Goods
Cost of Goods Sold

$
4,931,250.00
$ 209,250,000.00
$ 214,181,250.00
$5,493,750.00
$ 208,687,500.00
$ 12,032,000.00
$ 17,146,000.00
$ 237,865,500.00
$
5,344,500.00
$ 243,210,000.00
$
5,943,000.00
$ 237,267,000.00

BUDGETED INCOME STATEMENT

Sales
Less Cost of Goods Sold
Gross Profit
Less Expenses
Selling and Administrative Expenses
Interest Expense
Income Before Taxes
Tax
Profit After Tax

$660,000,000.00
$ 237,267,000.00
$422,733,000.00
$
$

39,478,224.30
1,500,000.00 $

40,978,224.30
$381,754,775.70
33.33% $ 127,238,866.74
$254,515,908.96

STATEMENT OF RETAINED EARNINGS

Net Income
Less Dividends
Retained Earnings for the Year
Add Retained Earnings b/f
Retained Earnings c/d

$
$
$
$

$254,515,908.96
10,000,000.00
244,515,908.96
62,557,580.00
307,073,488.96

BUDGETED BALANCE SHEET

Non Current Assets
Plant and Equipment
Depreciation
Total Current Asset
Current Assets
Cash
Finished Goods
Raw Materials
Accounts Receivable
Total Assets
Liabilities and Equity
Accounts Payable
Retained Earnings

$
$

105,500,000.00
1,600,000.00
$ 103,900,000.00

$
$
$

382,738,775.70
5,943,000.00
5,493,750.00
$17,400,000.00 $ 411,575,525.70
$ 515,475,525.70

$
$

16,537,500.00
307,073,488.96

Common Stock
Taxation Payable

$
$

64,625,670.00
127,238,866.74
$ 515,475,525.70

M SUPPLIES LIMITED
Q2-2012
52000
$1,000
$52,000,000

Q3-2012
53000
$1,000
$53,000,000

Q4-2012
54000
$1,000
$54,000,000

FY-2012
210000
$1,000
$210,000,000

22000
$5,000
$110,000,000
$162,000,000

23000
$5,000
$115,000,000
$168,000,000

24000
$5,000
$120,000,000
$174,000,000

90000
$5,000
$450,000,000
$660,000,000

Q1-2012
$78,000,000
$78,000,000

Q2-2012
$81,000,000
$81,000,000

Q3-2012
$84,000,000
$84,000,000

Q4-2012
$87,000,000
$87,000,000

Q2-2012

ION BUDGET

Q3-2012

Q4-2012

FY-2012

$64,800,000

$67,200,000

$69,600,000

$264,000,000

$15,600,000
$81,000,000
$161,400,000

$16,200,000
$84,000,000
$167,400,000

$16,800,000
$87,000,000
$173,400,000

$63,600,000
$330,000,000
$657,600,000

FY-2012
$330,000,000
$330,000,000

Q2-2012
52000

Q3-2012
53000

Q4-2012
54000

FY-2012
210000

5200

5300

5400

5400

57200

58300

59400

215400

5100
52100

5200
53100

5300
54100

5000
210400

Q2-2012
22000

Q3-2012
23000

Q4-2012
24000

FY-2012
90000

2200

2300

2400

2400

24200

25300

26400

92400

2100
22100

2200
23100

2300
24100

2000
90400

Q2-2012

Q3-2012

Q4-2012

Q1-2013

FY-2012

52100

53100

54100

55100

210400

0.5

0.5

0.5

0.5

0.5

26050

26550

27050

27550

105200

2605

2655

2705

2755

2705

28655

29205

29755

30305

107905

2555
26100

2605
26600

2655
27100

2705
27600

2505
105400

$150
3,915,000.00

$150
3,990,000.00

$150
4,065,000.00

$150
4,140,000.00

$150
15,810,000.00

Q2-2012

Q3-2012

Q4-2012

Q1-2013

FY-2012

22100

23100

24100

25100

90400

10

10

10

10

10

221000

231000

241000

251000

904000

22100
243100

23100
254100

24100
265100

25100
276100

24100
928100

21100

22100

23100

24100

20100

222000

232000

242000

252000

908000

$150
$33,300,000
37,215,000.00 $

$150
$34,800,000
38,790,000.00 $

$150
$150
$150
$36,300,000
$37,800,000
$136,200,000
40,365,000.00 $ 41,940,000.00 $ 152,010,000.00

Q2-2012

Q3-2012

Q4-2012

Q1-2013

FY-2012

52100

53100

54100

55100

210400

52100

53100

54100

55100

210400

5210

5310

5410

5510

5410

57310

58410

59510

60610

215810

5110
52200

5210
53200

5310
54200

5410
55200

5010
210800

$250
$13,800,000

$250
$52,700,000

$250
$13,050,000

$250
$13,300,000

$250
$13,550,000

Q2-2012
22100

Q3-2012
23100

24100

Q1-2013
25100

FY-2012
90400

0.2

0.2

0.2

0.2

0.2

4420

4620

4820

5020

18080

442

462

482

502

482

4862

5082

5302

5522

18562

422
4440

442
4640

462
4840

482
5040

402
18160

$250
$1,110,000
$14,160,000

Q4-2012

$250
$1,160,000
$14,460,000

$250
$1,210,000
$14,760,000

$250
$1,260,000
$15,060,000

Q2-2012
74200

Q3-2012
76200

Q4-2012
78200

FY-2012
300800

0.1
7420

0.1
7620

0.1
7820

0.1
30080

$400

$400

$400

$400

2,968,000.00

3,048,000.00

3,128,000.00

$ 12,032,000.00

$250
$4,540,000
$57,240,000

Q3-2012
53,250,000.00 $

Q4-2012
55,125,000.00 $

FY-2012
209,250,000.00

37,275,000.00 $

38,587,500.00 $

146,475,000.00

15,412,500.00 $

15,975,000.00 $

60,525,000.00

52,687,500.00 $

54,562,500.00 $

207,000,000.00

Q4

FY-2012
7820

$
$
$

30080

200
1,564,000.00 $
2,770,000.00 $
4,334,000.00 $

Q4

TOTAL
$173,400,000
$173,400,000

200
6,016,000.00
11,130,000.00
17,146,000.00

54,562,500.00 $

$657,600,000
$657,600,000
207,000,000.00

$
$
$
$
$

$
$
$

10,203,271.03
$3,128,000.00
3,934,000.00
2,500,000.00
74,327,771.03
$99,072,228.97
286,541,546.73
$385,613,775.70

$
$
$
$
$
$

$
2,500,000.00 $
375,000.00 $
382,738,775.70 $

39,478,224.30
12,032,000.00
15,546,000.00
10,000,000.00
284,056,224.30
$373,543,775.70
10,695,000.00
$384,238,775.70

10,000,000.00
10,000,000.00
1,500,000.00
382,738,775.70

Selling and Administrative Budget

Years

Quarters
2010

Windows & Doors Units

50,000
45,000
38,000
65,000
55,000
48,000
65,000

1
2
3
4
1
2
3

2011

Q4*

Variable:
Total expected sales units
rate per unit
$
Total Variable
$
Fixed Cost:
$
Total Selling and administrative cost$

70,000
111.24
7,786,682.24
1,526,682.24
9,313,364.49

Q1

$
$
$
$

72,000
111.24
8,009,158.88
1,526,682.24
9,535,841.12

Q2

$
$
$
$

74,000
111.24
8,231,635.51
1,526,682.24
9,758,317.76

udget
Selling and Administrative Cost
6,800,000.00
6,700,000.00
5,700,000.00
8,600,000.00
8,000,000.00
6,800,000.00
8,800,000.00

Q3

$
$
$
$

76,000
111.24
8,454,112.15
1,526,682.24
9,980,794.39

Variable cost per unit=

fixed cost =
cost function =

Q4

$
$
$
$

78,000
111.24
8,676,588.79
1,526,682.24
10,203,271.03

TOTAL

$
$
$
$

300,000
111.24
33,371,495.33
6,106,728.97
39,478,224.30

$1,526,682.24 +$111.24x

111.24

$ 1,526,682.24
$1,526,682.24 +$111.24x