Chan Andre Cruz

3BAM-1

Unit Sales Price Per Unit

Company A 6,550 800
Company B 7,000 1,000
Additional Condition for Company A:
New Raw Materials: 1
: 1:1
: 2,000 units (Ending Inventory)
: Php 5.00/unit
: 10% Desired Profit

Comparative Report
Cash Budget
For the Budget Year Ending December 31, 2019
Company A Company B Total
Cash Balance, January 1, 2019 150,000 150,000 300,000
Add: Estimated receipts
Collections from customers 5,185,000 5,185,000 10,370,000
Sale of assets 25,000 25,000 50,000
Total 5,360,000 5,360,000 10,720,000
Total cash available
Less: Estimated disbursements
Payments for material purchases 1,234,250 1,272,000 2,506,250
Direct labor 970,900 1,036,600 2,007,500
Manufacturing Overhead 853,934 862,929 1,716,863
Marketing and administrative expenses 1,467,251 1,492,845 2,960,096
Payments for income tax 252,000 252,000 504,000
Dividends 140,000 140,000 280,000
Reduction in long-term debt 83,000 83,000 166,000
Acquisition of new assets 320,000 320,000 640,000
Total disbursements 5,321,335 5,459,374 10,780,709
Cash Balance, December 31, 2019 38,665 (99,374) (60,709)

Comparative Report
Income Statement
For the Budget Year Ending December 31, 2019
Company A Company B Total
Sales 5,240,000 7,000,000 12,240,000
Less: Cost of sales 3,285,084 3,407,529 6,692,613
Gross profit 1,954,917 3,592,471 5,547,388
Less: Marketing and administrative costs 1,508,531 1,534,125 3,042,656
Net operating profit 446,385 2,058,346 2,504,731
Less: Interest expense 52,720 52,720 105,440
Net income before taxes 393,665 2,005,626 2,399,291
Less: Provision for income taxes (35%) 137,783 701,969 839,752
Net income after taxes 255,882 1,303,657 1,559,539
 Comparative Report
Balance Sheet
For the Budget Year Ending December 31, 2019
Company A Company B Total
ASSETS
Current Assets
Cash 38,665 (99,374) (60,709)
Accounts Receivable 275,000 2,035,000 2,310,000
Inventories 661,000 651,000 1,312,000
Other current assets 23,000 23,000 46,000
Total current assets 997,665 2,609,626 3,607,291
Long-term assets -
Property,plant,and equipment 2,495,000 - 2,495,000
Less: Accumulated Dep'n 949,000 2,495,000 3,444,000
Net 1,546,000 949,000 2,495,000
Total Assets 2,543,665 1,546,000 4,089,665
-
LIABILITIES -
Current Liabilities -
Accounts Payable 155,000 155,000 310,000
Taxes Payable 41,783 605,969 647,752
Current portion of Long-term debt - - -
Total Current Liabilities 196,783 760,969 957,752
Long-term Liabilities 576,000 576,000 1,152,000
Total Liabilities 772,783 1,336,969 2,109,752
-
EQUITY -
Share Capital 350,000 350,000 700,000
Retained Earnings 1,420,882 2,468,657 3,889,539
Total Liabilities & Owners Equity 2,543,665 4,155,626 6,699,291

COMPANY A
SALES BREAKEVEN SALES

Sales 5,240,000 4,184,811

Variable Cost 3,285,084 1 2,623,560
Contribution Margin 1,954,917 0 1,561,251
Fixed Cost 1,561,251 1,561,251
Net Profit 393,665 -

DESIRED PROFIT
Sales 5,345,519
Variable Cost 3,351,236
Contribution Margin 1,994,283
Fixed Cost 1,561,251
Net Profit 433,032