Weekly Reflections - Budget

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QuarterlyDecisions.pdf

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"Growing Your Business" - A Management Simulation

OM LeversCurrent Decisions

Market Forecast as of Q1'21 (90% Confidence Level) Financial Metrics – Plan and Actual+SRO *

Plan Actual+SRO

Sales $3,540,475.00 $3,540,475.00

Net Income $240,970.08 $240,970.08

Cash Flow ** ($91,852.19) ($91,852.19)

* Plan is annual commitment, SRO is Short Range Outlook and represents Decisions for Qtrs. To be played (the SRO may have changed from original plan for the Qtr.).

** Operating

Pre-Tax Income: Year Plan vs. Actual+SRO

Q1'21 - Expected Pre-tax NI Walk Q1'21 - Expected Cash Flow Walk Q1'21 - Expected OM Levers *

* All Ceteris Paribus * Variable/Base Cost Improvements Imply Cost Reduction ** % Volume Increase Required To Maintain CM $ Facing a 1% Price Reduction *** % Improvement (Decrease) Required To Maintain CM $ Facing a 1% Price Reduction

 Quarterly Decisions

Plan Q4'20A Q1'21 Q2'21 Q3'21 Q4'21

Sales 

Total Market Demand [Units] 2,485

Lost Sales [Units] 0

Units Sold [Units] 829

Price [$] $550.00

Terms [Days] 60

3,047 3,891 5,044 6,637

0 0 0 0

1,005 1,322 1,665 2,190

$550.00 $575.00 $575.00 $580.00

45 40 40 30

 Reginald Whimbush

Hisco    QTRLY DASHBOARD  R&D  ROLE-PLAY  QTRLY DECISIONS Financial Statements  Supply Chain Mgt

2,250

4,500

6,750

9,000

Q 3.

Q 4.

Q 1.

Q 2.

Q 3.

Q 4.

2,091 2,485

$138.6K

$277.1K

$415.7K

$554.2K

Ye ar

P la

G ro

w th

M ar

ke t Sh

ar e

Pr ic e

VC ( I)

VC ( P)

Ba se

C os

In te

re st

Ac tu

al +

SR O

$481.9K $0 $0 $0 $0 $0 $0 $0 $481.9K

$-87.3K

$-65.5K

$-43.7K

$-21.8K

Q 4'

20 A

ct ua

G ro

w th

M ar

ke t Sh

ar e

Pr ic e

VC ( I)

VC ( P)

Ba se

C os

In te

re st

Q 1'

21 E

xp ec

te d

$-72.2K

$60.8K

$-3.7K

$-4.1K

$-56.7K

$37.7K

$-5.1K $-43.3K

$-464.5K

$-348.4K

$-232.3K

$-116.1K

$0 Be

g Q tr

C as

h/ D eb

t N et

I nc

om e

D ep

re ci at

io n

Re ce

iv ab

le s

In ve

nt or

y AP P& E

Co m

m on

S to

ck En

d Q tr

C as

h/ D eb

$-382.3K $-21.7K

$37.8K

$46.6K $0 $0 $0

$-319.6K

0% 4% 8% 12% 16% 20%

Price

Volume

Variable Cost

Base Cost

Volume **

Variable Cost ***

The inputs above are the prior management team's plan for the coming year. This plan approximates $240k in Net Income.

Guideline Model My Plan

Plan Q4'20A Q1'21 Q2'21 Q3'21 Q4'21

Average Collection Period [Days] 64.4

Production 

Raw Material On Order [Units] 1,000

Units Produced [Units] 1,166

Labor Force Hires [People] 5

Labor Force Layoffs [People] 0

Lines On Order [Units] 0

Planned Time 1.28

Effectiveness 85.4%

Discretionary Costs 

Quality Engineering Expense $42,000.00

Research Funding Expense $0.00

Project 01 Funding $0.00

Project 02 Funding $45,000.00

Project 03 Funding $0.00

Inventory Rework Cost $0.00

Marketing Expense $41,000.00

Advertising Expense $31,000.00

Lean Six Sigma Expense $25,000.00

Building Lease and Utilities $79,953.00

Reports 

Marketing Report

Business Intelligence Dashboard

47.0 44.0 44.0 34.0

900 1,825 3,550 3,000

600 1,400 1,900 3,400

0 10 0 17

0 0 0 0

3 3 3 0

1.20 1.10 1.00 0.90

96.8% 72.7% 90.0% 92.0%

$40,000.00 $45,000.00 $90,000.00 $80,000.00

$0.00 $0.00 $0.00 $0.00

$35,000.00 $0.00 $0.00 $0.00

$0.00 $0.00 $0.00 $0.00

$46,000.00 $72,000.00 $135,000.00 $142,000.00

$28,000.00 $30,000.00 $40,000.00 $25,000.00

$25,000.00 $32,000.00 $38,000.00 $25,000.00

$70,951.00 $75,015.00 $84,293.00 $87,350.00

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