Data

Type Month Sales Units Selling Price Mat Lab OH Cost

Actual Nov-87 $ 175,000 1,129,032 0.155 0.052 0.020 0.010 0.082
Actual Dec-87 $ 232,500 1,500,000 0.155 0.052 0.020 0.010 0.082
Forecast Jan-88 $ 263,500 1,700,000 0.155 0.060 0.020 0.010 0.090
Forecast Feb-88 $ 186,000 1,200,000 0.155 0.060 0.020 0.010 0.090
Forecast Mar-88 $ 217,000 1,400,000 0.155 0.060 0.020 0.010 0.090
Forecast Apr-88 $ 310,000 2,000,000 0.155 0.060 0.020 0.010 0.090
Forecast May-88 $ 387,500 2,500,000 0.155 0.060 0.020 0.010 0.090

Op St + Purchases - Cl. St = Units Sold

Purchases = Units Sold + Cl. St - Op. St

Adams Corp
Balance Sheet
as at 31st December 1987
Assets Liab & Equity
Current Assets Accounts Payable 93,600
Cash 30,000 Notes Payable -
Accounts Rec. 320,000 Long Term Debt 400,000 8%
Inv 237,800 Common Stock 504,200
Total Current Assets 587,800 Retained Earnings 390,000
Fixed Assets
Plant & Equip 1,000,000
Less: Acc. Dep 200,000 800,000
Total Assets 1,387,800 Total Liab & Equity 1,387,800
 Production

Purchases = Units Sold + Cl. St - Op. St

Units Calculation
Nov Dec Jan Feb Mar
Units Sold 1,129,032 1,500,000 1,700,000 1,200,000 1,400,000
+ Cl. St 2,600,000 2,900,000 2,600,000 3,400,000 4,500,000
- Op.St 2,600,000 2,900,000 2,600,000 3,400,000
Purchases 1,800,000 1,400,000 2,000,000 2,500,000

To Check whether Dec Cl. St is Correct Take End. Inv from Balance sheet
and divide by December Cost '237800/.082 = 2,900,000
Jan Feb Mar
Op.St 2,900,000 2,600,000 3,400,000
Purchases 1,400,000 2,000,000 2,500,000
GAFS 4,300,000 4,600,000 5,900,000
Cl. St 2,600,000 3,400,000 4,500,000
Units Sold 1,700,000 1,200,000 1,400,000

Units Cost Inv Value

Op. Stock Jan 2,900,000 0.0820 237,800

Purchases Jan 1,400,000 0.090 126,000

Feb 2,000,000 0.090 180,000
Mar 2,500,000 0.090 225,000

Sales Jan 1,700,000

Feb 1,200,000
Mar 1,400,000

Cl. St Jan 2,600,000

Jan Prod 1,400,000 0.090 $ 126,000
Dec Prod 1,200,000 0.0820 $ 98,400 $ 224,400

Feb 3,400,000
Jan Prod 1,400,000 0.090 $ 126,000
Feb Prod 2,000,000 0.090 $ 180,000 $ 306,000

Mar 4,500,000
Feb Prod 2,000,000 0.090 180,000
Mar Prod 2,500,000 0.090 225,000 $ 405,000
 COGS

Cost of Goods Sold Schedule

Account Jan Feb Mar Qtr
Op. St $ 237,800 $ 224,400 $ 306,000 $ 237,800
+ Purchases $ 126,000 $ 180,000 $ 225,000 $ 531,000
GAFS $ 363,800 $ 404,400 $ 531,000 $ 768,800
- Cl. St $ 224,400 $ 306,000 $ 405,000 $ 405,000
COGS $ 139,400 $ 98,400 $ 126,000 $ 363,800
 P&L

Adams Corporation
P&L Statement
For Quarter 1, 1988
Account Jan Feb Mar Qtr
Sales $ 263,500 $ 186,000 $ 217,000 $ 666,500
Less: COGS $ 139,400 $ 98,400 $ 126,000 $ 363,800
Gross Profit $ 124,100 $ 87,600 $ 91,000 $ 302,700
Less: Dep $ 8,333 $ 8,333 $ 8,333 $ 25,000
Less: Op Exp $ 52,700 $ 37,200 $ 43,400 $ 133,300
EBIT $ 63,067 $ 42,067 $ 39,267 $ 144,400
Less: Interest $ 2,667 $ 2,667 $ 2,667 $ 8,000
EBT $ 60,400 $ 39,400 $ 36,600 $ 136,400
Less: Tax $ 24,160 $ 15,760 $ 14,640 $ 54,560
EAT $ 36,240 $ 23,640 $ 21,960 $ 81,840
Less: Dividends $ 18,120 $ 11,820 $ 10,980 $ 40,920
Net Income $ 18,120 $ 11,820 $ 10,980 $ 40,920
 Rec & Pmt Schedule

Receipts & Payments Schedule

Account Nov Dec Jan Feb Mar

Sales $175,000 $232,500 $263,500 $186,000 $ 217,000
Receipt Trend:
1 Mth 50% $ 87,500 $116,250 $131,750 $ 93,000
2 Mth 50% $ 87,500 $116,250 $ 131,750
$203,750 $248,000 $ 224,750

Accounts Receivable $310,000

Mat Purchases $ 93,600 $ 84,000 $120,000 $ 150,000

Pmt Trend:
Imth 100% $ 93,600 $ 84,000 $ 120,000
$ 93,600 $ 84,000 $ 120,000

Accounts Payable $150,000

Op $320,000 $ 93,600 Op
+ Sales $666,500 $354,000 +Purchases
- Receipts $676,500 $297,600 - Payments
Acc Rec $310,000 $150,000 Acc Pay
 Cash Budget

Adams Corporation
Cash Budget
For Quarter 1, 1988
Account Jan Feb Mar Qtr
Op Cash $ 30,000 $ 25,000 $ 25,000 $ 30,000
Add:
Receipts $203,750 $248,000 $ 224,750 $ 676,500
Cash Available $233,750 $273,000 $ 249,750 $ 706,500
Less: Payments
Purchases $ 93,600 $ 84,000 $ 120,000 $ 297,600
Labor $ 28,000 $ 40,000 $ 50,000 $ 118,000
Overheads $ 14,000 $ 20,000 $ 25,000 $ 59,000
Op Exp $ 52,700 $ 37,200 $ 43,400 $ 133,300
Interest $ 8,000 $ 8,000
Taxes $ 54,560 $ 54,560
Dividends $ 40,920 $ 40,920
Total Payments $188,300 $181,200 $ 341,880 $ 711,380
Net Cash $ 45,450 $ 91,800 $ (92,130) $ (4,880)
Min Cash Bal $ 25,000 $ 25,000 $ 25,000 $ 25,000
Purch Mkt Sec $ 20,450 $ 66,800
Cash Shortfall $ 117,130 $ 29,880
Sold Mkt Sec $ 87,250
Sht Term Loan $ 29,880

Net Cash $ 15,450 $ 66,800 $(117,130)

Beg Cash $ 30,000 $ 45,450 $ 112,250
$ 45,450 $112,250 $ (4,880)
 B Sheet

Adams Corp
Balance Sheet
as at 31st March 1988
Assets Liab & Equity
Current Assets Accounts Payable 150,000
Cash 25,000 Notes Payable 29,880
Accounts Rec. 310,000 Long Term Debt 400,000
Inv 405,000 Common Stock 504,200
Total Current Assets 740,000 Retained Earnings 390,000
Fixed Assets Add: Net Profit for Yr 40,920
Plant & Equip 1,000,000
Less: Acc. Dep 225,000 775,000
Total Assets 1,515,000 Total Liab & Equity 1,515,000