financial statements

Mr Petersons Cash Planning

Mr Petersons Cash Planning
Monthly sales will be distributed 5% for the months of January to April, 8% for May and June,11% July to October, 10% for November and the remaining sales in December.
	Jan	Feb	March	April	May	June	july	August	sept	oct	Nov	Dec	Totals
Sales	100000	100000	100000	100000	160000	160000	220000	220000	220000	220000	200000	200000	2000000
Selling price	2.8	2.8	2.8	2.8	2.8	2.8	2.8	2.8	2.8	2.8	2.8	2.8	2.8
Total sales	99997.2	99997.2	99997.2	99997.2	159997.2	159997.2	219997.2	219997.2	219997.2	219997.2	199997.2	199997.2	1999997.2
Cash budget
Beginning balance	50,000	7,550,000	7,550,000	7,499,997	7,449,994	7,399,992	7,349,989	7,269,986	7,189,983	7,079,980	6,969,978	6,859,975	6,749,972
Add: Collections			99997.2	99997.2	99997.2	99997.2	159997.2	159997.2	219997.2	219997.2	219997.2	219997.2		Cash is collected after 60 days
Total cash availlable	50,000	7,550,000	7,649,997	7,599,994	7,549,992	7,499,989	7,509,986	7,429,983	7,409,980	7,299,978	7,189,975	7,079,972
Less: Cash Disbursements
Direct Materials			150000	150000	150000	150000	240000	240000	330000	330000	330000	330000		Direct material are paid after 60 days
Direct Labor: Technicians													97500	these are annual costs charged once
Production Employees													84000
Manager													90000
Qulaity control													59999.916
Gneral and administration costs													200000
Interest													157500
Total Disbursement														The taxation for the first year is zero since the business made a loss
Excess/deficit	50,000	7,550,000	7,499,997	7,449,994	7,399,992	7,349,989	7,269,986	7,189,983	7,079,980	6,969,978	6,859,975	6,749,972	689,000
Tax													0
Financing
Owners' funds	4000000
Borrowings	3500000
Ending Cash Balance	7,550,000	7,550,000	7,499,997	7,449,994	7,399,992	7,349,989	7,269,986	7,189,983	7,079,980	6,969,978	6,859,975	6,749,972	6,060,972

Profit and Loss Account

Profit and Loss Account for 5 Years
	Year 1	Year 2	Year 3	Year 4	Year 5
Sales	2,000,000	2400000	2880000	3456000	4147200
Selling price	2.8	2.8	2.8	2.8	2.8
Total revenues	5600000	6720000	8064000	9676800	11612160
Direct materials	1.5	1.5	1.5	1.5	1.5	The direct Material per Unit is 1.5
Costs of Sales	3000000	3600000	4320000	5184000	6220800
Gross Profit	2600000	3120000	3744000	4492800	5391360
Expenses
Labour: Technicians	97500	104325	113100	118950	126750	The labour increase per year.
Production Workers	840000	898800	974400	1024800	1092000
Manager	90000	96300	104400	109800	117000
Utilities	0.18	0.1926	0.206082	0.22050774	0.2359432818
uotal utilities	360000	462240	593516.16	762074.74944	978503.97828096
Quality control	168000	201600	241920	290304	348364.8
General and administrative costs	200000	210000	220500	231525	243101.25
Depreciation(firsts 5000000)	500000	500000	500000	500000	500000
Remaining 250000	625000	625000	625000	625000	0
Earning before Interest and Tax	-280500	21735	371163.839999999	830346.25056	1985639.97171904
Interest	148750	148750	148750	148750	148750
Earning before Tax	-429250	-127015	222413.839999999	681596.25056	1836889.97171904
Tax	-	-	55603.4599999997	170399.06264	459222.49292976
Net Income	-429250	-127015	166810.379999999	511197.18792	1377667.47878928