Sukyung Kim; ACC212

Project
Step1
E-Lan Electronics
Sales Budget
For the Year Ended
January
Prior Year Sales in Units
Budget as a percent of prior year
Projected sales in unit
Sales price per unit
Sales Revenue

Percentage of sales collected in the period of the sale

Percentage of sales collected in the period after sale
uncollected

February
200,000
115%
230,000
38
8,740,000 $

March
268,000
115%
308,200
38
11,711,600 $

240,000
115%
276,000
38
10,488,000

75%
22%
3%

Schedule of Expected Cash Collections

January

February

March

Accounts Receivable, beginning balance

January Sales
February Sales
March Sales
Discount 2%

1,980,000
6,555,000

131,100

175,674

2,576,552
7,866,000
157,320

Total cash disbursement for raw materials

8,403,900

10,530,826

10,285,232

262,200

351,348

314,640

Uncollected

1,922,800
8,783,700

E-Lan Electronics
Production Budget
For the Year Ended
January
Budgeted Sales

February
230,000

March
308,200

276,000

Add: desired ending finished goods

Total finished goods needs
Less: beginning finished goods
Units to be produced

30,820
260,820
23,000
237,820

27,600
335,800
30,820
304,980

24,150
300,150
27,600
272,550

Step2

January
Required production in units
Number of Flobs per Gizmo
Total production needs - Flobs
Production needs - Flobs
Add: desired ending inventory - Flobs
Total needs - Flobs
Less: beginning inventory - Flobs
Raw materials to be purchased - Flobs
Cost of raw materials per Flobs
Cost of raw materials to be purchased

E-Lan Electronics
Direct materials purchases budget
For the Year Ended
February
March
237,820
304,980
x3
x3
713,460
914,940

272,550
x3
817,650

713,460
274,482
987,942
214,038
773,904
2.5
1,934,760

914,940
245,295
1,160,235
274,482
885,753
2.5
2,214,383

817,650
219,420
1,037,070
245,295
791,775
2.5
1,979,438

237,820
x1
237,820

304,980
x1
304,980

272,550
x1
272,550

Production needs - Gizmo

Add: desired ending inventory - Gizmo
Total needs - Gizmo
Less: beginning inventory - Gizmo
Raw materials to be purchased - Gizmo
Cost of raw materials per Gizmo
Cost of raw materials to be purchased

237,820
91,494
329,314
71,346
257,968
7
1,805,776

304,980
81,765
386,745
91,494
295,251
###
2,066,757

272,550
73,140
345,690
81,765
263,925
7
1,847,475

Total

3,740,536

4,281,140

3,826,913

Required production in units

Number of Gizmo
Total production needs - Gizmo

Percentage of Purchases paid for in the period of the purchase

70%

Percentage of Purchases paid for in the period after purchase

30%

Schedule of Expected Cash Disbursements for Materials

January
1,640,000
2,618,375.20

Accounts Payable, beginning balance

January Purchse
February Purchase
March Purchase
Total cash disbursement for raw materials

February

March

1,122,160.80
2,996,797.65

4,258,375

1,284,341.85
2,678,838.75

4,118,958

3,963,181

E-Lan Electronics
Direct Labor Budget
For the Year Ended
January
Required production in units
Direct labor-hours per case
Total direct labor-hours needed
Direct labor cost per hour
Total direct labor cost

February
237,820
0.8
190,256
18
3,424,608

March
304,980
0.8
243,984
18
4,391,712

272,550
0.8
218,040
18
3,924,720

E-Lan Electronics
Manufacturing Overhead Budget
For the Year Ended
January

February

March

Budgeted direct labor-hours

Variable manufacturing overhead rate
Variable manufacturing overhead
Fixed manufacturing overhead
Total manufacturing overhead
Less: Depreciation

237,820
2.7
642,114
228,000
870,114
27,000

304,980
2.7
823,446
228,000
1,051,446
27,000

272,550
2.7
735,885
228,000
963,885
27,000

Cash disbursement for manufacturing overhead

843,114

1,024,446

936,885

Total manufacturing overhead

Budgeted direct labor-hours
Predetermined overhead rate for the year

E-Lan Electronics
Ending Finished Goods Inventory Budget
For the Year Ended
Item:
Production cost per case
Indirect Materials
Indirect Labor
Manufacturing overhead
Unit product cost
Budgeted finished goods inventory:
Ending finished goods inventory in cases
Unit product cost
Ending finished goods inventory in dollars

Step3

Quantity
Gizmo
Flobs

Cost
1
3
0.8
1

7
2.5
18
3.6382473784

E-Lan Electronics
Selling and Administrative Budget
For the Year Ended
January
Budgeted sales in units
Variable Selling and Administrative expense
Variable Selling and Administrative expenses
Fixed Selling and Administrative expenses:
Salaries
Rent
Advertising
Depreciation
Other
Total fixed selling and administrative expenses
Total selling and administrative expenses
Less: Depreciation
Cash disbursements for selling and administrative expenses

February

March

230,000
1.5
345,000

308,200
###
462,300

276,000
1.5
414,000

15,000
17,000
82,000
18,500
6,700
139,200
484,200
18,500
465,700

###
###
###
###
###
139,200
601,500
###
583,000

15,000
17,000
82,000
18,500
6,700
139,200
553,200
18,500
534,700

E-Lan Electronics
Capital Expenditures Budget
For the Year Ended
Selling and Administrative Equipment
Production Equipment

January

February

March
$
$

180,000
3,100,000

Total expenditure

3,280,000

E-Lan Electronics
Cash Budget
For the Year Ended
January

February

March

Cash Balance, beginning

Add: receipts
Collections from customers
Total cash available before current financing
Less disbursements:
Direct materials purchased
Selling and administrative expenses
Direct Labor
Manufacturing Overhead
Equipment purchases
Total disbursements
Excess (deficiency) of cash available over
Financing:
Borrowings
Borrowing for the current month
Repayments
Interest
Total financing
Cash balance, ending

50,000 $

50,000 $

50,000

$
$

8,403,900 $
8,453,900 $

10,530,826 $
10,580,826 $

10,285,232
10,335,232

$
$
$
$

4,258,375
465,700
3,424,608
870,114

$
$

$
$
$
$
$

$
$
$
$

4,118,958
583,000
4,391,712
1,051,446

9,018,797 $
(564,897) $

$
$
$
$
$
10,145,116 $
435,710 $

3,963,181
534,700
3,924,720
963,885
3,280,000
12,666,486
(2,331,254)

362,000 $
614,897
$
3,620 $
980,517 $
50,000

980,517 $
$
(385,710)
9,805.17 $
604,613 $
### $

604,613
2,381,254
6,046.13
2,991,913
50,000

4)

E-Lan Electronics
Budgeted Income Statement
For the Year Ended
Sales
Sales Discount
Net Sales
Cost of Goods Sold
Gross Margin
Expenses:

E-Lan Electronics
Budgeted Balance Sheet
For the Year Ended
Assets
$
$
$
$
$

30,939,600
(464,094)
30,475,506
26,492,641
3,982,865

Current Assets:
Cash
Accounts Receivable
Raw material inventories*
Finished godds inventory
Total current assets

Selling and Administrative Expenses

Bad Debt Expenses
Total Expenses
Net Operating Income
Interest Expense
Net Income

$
$
$
$
$
$

1,638,900
928,188
2,567,088
1,415,777
19,471
1,396,306

Property, plant, and equipment

Net beginning Equipment
Selling and Administrative Equipment
Production Equipment
Less: Depreciation
Total Property, plant, and equipment
Total assets

Liabilites and Stockholders' Eq

Current Liabilities
Accounts Payable
Line of Credit
Total Current Liabilities
Stockholders' Equity
Common Stock
Retained Earnings
Total Stockholders' Equity
Total liabilities and Stockholders' Equity

511,980

Total

April
708,000
115%
814,200

30,939,600 $

210,000
115%
241,500
38
9,177,000

April
1,980,000
8,477,800
11,360,252
7,866,000
464,094

2,307,360

29,219,958
928,188

Total

April
814,200

241,500

24,150
838,350
23,000
815,350

Quarter

26,450
267,950
24,150
243,800

April
815,350
x3
2,446,050

243,800
x3
731,400

2,446,050
219,420
2,665,470
214,038
2,451,432
2.5
6,128,580

731,400
731,400
219,420
511,980
2.5
1,279,950

815,350
x1
815,350

243,800
x1
243,800

815,350
246,399
1,061,749
71,346
990,403
7
6,932,821

243,800
243,800
73,140
170,660
###
1,194,620

13,061,401

2,474,570

Aptil

1,148,073.75

1,640,000
3,740,536
4,281,140
2,678,839

1,148,073.75

12,340,514

Quarter

April
815,350
0.8
652,280
18
11,741,040

Quarter
815,350
2.7
2,201,445
684,000
2,885,445
81,000
2,966,445

243,800
0.8
195,040
18
3,510,720

2,966,445.00
815,350
3.6382473784

Total
7
7.5
14.4
3.6382473784
32.5382473784

24,150
32.5382473784
785,798.67

Quarter
814,200
1.5
1,221,300
45,000
51,000
246,000
55,500
20,100
417,600
1,638,900
55,500
1,583,400

Quarter
$
$

180,000
3,100,000

3,280,000

Quarter

50,000

$
$

29,219,958
29,369,958

$
$
$
$
$
$
$

12,340,514
1,583,400
11,741,040
2,885,445
3,280,000
31,830,399
(2,460,441)

$
$
$
$
$
$

362,000
2,996,151
(385,710)
19,471
2,991,913
50,000

erial inventories*
godds inventory

E-Lan Electronics
Budgeted Balance Sheet
For the Year Ended
Assets
$
$
$
$
$

50,000
2,307,360
1,060,530
785,799
4,203,689

ant, and equipment

nning Equipment
nd Administrative Equipment
on Equipment

$
$
$
$
$
$

ty, plant, and equipment

7,800,000
180,000
3,100,000
136,500
10,943,500
15,147,189

Liabilites and Stockholders' Equity

olders' Equity
ies and Stockholders' Equity

548,550

$
$
$

1,148,074
2,991,913
4,139,986

$
$
$
$

1,200,000
9,807,203
11,007,203
15,147,189

1,060,530