Eastern Corp.

Sales Budget
For the Year Ended December 31, 2012
Quarter
1
Budgeted sales in units
Selling price per unit
Total sales

$
$

6,500
51 $
331,500 $

2
7,150
51 $
364,650 $

3
7,865
51 $
401,115 $

4
8,651
51 $
441,201 $

Year
30,166
51
1,538,466

Eastern Corp.
Schedule of Expected Cash Collections
For the Year Ended December 31, 2012
Quarter
Accounts receivable, beginning
First-quarter sales - (331,500)
Second-quarter sales- (364,650)
Third-quater sales- (401,115)
Fourth-quarter sales- (441,227)

1
187,500
116,025

303,525 $

2
215,475
127,628

343,103 $

237,023
140,390
377,413 $

Year
$
187,500
331,500
364,650
260,725
401,115
154,420
154,420
415,145 $ 1,439,185

Accounts Receivable at the end of 2012: $441,201*65%= $286,781

Eastern Corp.
Inventory Purchases
For the Year Ended December 31, 2012
Quarter
1
Budgeted Sales
Add desired ending inventory
of finished goods*
Total needs
Less beginning inventory
of finished goods
Required Inventory
Cost per unit

$
$

*Twenty-five percent of the next quarters sales

6,500
1,788

7,150
1,966

7,865
2,163

8,651
2,379

Year
30,166
2,379

8,288
1,000

9,116
1,788

10,028
1,966

11,030
2,163

32,545
1,000

7,288
37 $
269,638 $

7,329
37 $
271,164 $

8,062
37 $
298,276 $

8,867
31,545
37 $
37
328,089 $ 1,167,166

9,516
2,379
37
88,024

Eastern Corp.
Schedule of Expected Cash Dibursements
For the Year Ended December 31, 2012
Quarter
1
Purchases
Accounts Payable, beginning
First-quarter purchases
Second-quarter purchases
Third-quarter purchases
Fourth-quarter purchases

Operating Expenses
Fixed salaries
Commissions
Advertising
Office Salaries
Property Taxes
Utilities
Insurance

Total Cash Disbursements

57,000
202,228

67,409
203,373

67,791
223,707

Year
57,000
269,638
271,164
298,276
246,067
1,142,144

259,228

270,782

291,498

74,569
246,067
320,636

26,000
16,575
6,200
11,000

26,000
18,233
6,200
11,000
18,000
3,600

26,000
20,056
6,200
11,000

26,000
22,060
6,200
11,000

3,600

3,600

83,033

66,856

68,860

104,000
76,923
24,800
44,000
18,000
14,400
3,000
285,123

353,815

358,353

389,496

1,427,267

3,600
3,000
66,375

325,603

Eastern Corp.
Cash Budget
For the Year Ended December 31, 2012
Quarter
1
Cash Balance, beginning
Add receipts:
Collections from customers
Total cash available
Less disbursements:
Inventory Purchases
Operating Expenses
Dividends
Equipment Purchases
Total disbursements
Excess (deficiency) of cash
available over disbursements
Financing
Borrowings
Repayments
Interest (6% per annum)
Total financing
Cash Balance, ending

2
5,500

5,013

5,919

5,200

Year
5,500

303,525
309,025

343,103
348,115

377,413
383,332

415,145
420,345

1,439,185
1,444,685

269,638
66,375

271,164
83,033

298,276
66,856
20,000

328,089
68,860

22,000
358,013

36,000
390,196

385,131

396,949

1,167,166
285,123
20,000
58,000
1,530,289

48,988 54,000

54,000
5,013

42,081 -

1,800

48,000

7,000

48,000
5,919

7,000 5,200

23,396 -

85,604

17,000 765 17,765

5,631

109,000
17,000
765
91,235
5,631

Eastern Corp.
Accounts Payable
For the Year Ended December 31, 2012
Quarter
Interest Payable
Borrowed
Repaid
Amount Left for Repayment
Length
Interest Payable
Total Payable

54,000
17,000
37,000
1
2,220
39,220

48,000
48,000
0.75
2,160
50,160

4
7,000
7,000
0.5
210
7,210

Year
109,000
17,000
92,000

0
-

4,590
96,590

Purchases Payable
82,022

Eastern Corp.
Budgeted Income Statement
For the Year Ended December 31, 2012

Sales
Less: cost of goods sold
Gross Margin
Less: selling and admin expenses
Operating Income
Less: interest expense
Net Income

1,538,466
1,167,166
371,300
285,123
86,177
765
85,412

Eastern Corp.
Budgeted Balance Sheet
For the Year Ended December 31, 2012
Assets
Current Assets:
Cash
Inventory
Accounts reveivable
Total Current Assets
Plant and Equipment:
Equipment
Depreciation
Total Plant and Equipment
Total Assets

5,631
88,024
286,781
380,436

130,000
9,600
120,400
500,836
Liabilities and Shareholder's Equity

Current Liabilities:
Accounts Payable
Interest Payable
Line of credit Payable
Total Current Liabilities
Shareholders Equity:
Common Shares
Retained Earnings

82,022
4,590
92,000

11,812
178,612
151,000
85,412
20,000

94,000
216,412
310,412
489,024

Inventory = 2013 1st Quarter projected sales 2012 fourth-quarter X 10% Increase X Desired Inventory X Price
8651 X 1.1 X 25% X $37
$
88,024

Eastern Corp.
Sales Budget
For the Year Ended December 31, 2012
Quarter
1

Year

Eastern Corp.
Sales Budget
For the Year Ended December 31, 2012
Quarter
1

Year