Travel Space Budget

EXHIBITS

ORIGINAL CASE FACTS
Do not make changes to these numbers
	EXHIBIT 1.									EXHIBIT 6.							EXHIBIT 9.
	ACTUAL AND PROJECTED SALES IN NUMBER OF TRAILERS									BUDGETED EXPENSES FOR THE FIRST SIX MONTHS 2021							ACTUAL 2020 AND PROJECTED 2021 SALES
	Actual Sales	2015	2016	2017	2018	2019	2020					January	February	March					2020	2021
		13,765	14,880	15,991	17,809	19,634	23,322			Aluminum		$ 816,000	$ 1,056,000	$ 888,000					Actual	Projected
										Other materials		54,000	264,000	222,000			January		1,983	2,500
	Projected Sales	2021	2022	2023	2024	2025				Wages		624,000	1,008,000	1,104,000			February		3,218	4,000
		28,000	33,600	40,320	48,384	58,060				Heat, light, & power		130,000	195,000	220,000			March		3,981	5,000
										Equipment rental		390,000	390,000	390,000			April		3,240	3,000
										Equipment purchases		300,000	300,000	300,000			May		1,755	2,000
	EXHIBIT 2.									Depreciation		250,000	250,000	250,000			June		901	1,000
	FINISHED GOODS INVENTORY									Selling & admin		400,000	400,000	400,000			July		763	1,000
	Budget: December 31, 2020			1,000	trailers												August		611	1,000
												April	May	June			September		1,622	2,000
	Current finished goods			300	trailers *plus*					Aluminum		$ 552,000	$ 336,000	$ 240,000			October		1,678	2,000
	inventory formula		+	20%	of the next month's sales					Other materials		138,000	84,000	90,000			November		1,439	2,000
										Wages		672,000	432,000	240,000			December		2,131	2,500
										Heat, light, & power		135,000	110,000	110,000			Total Trailers		23,322	28,000
	EXHIBIT 3.									Equipment rental		340,000	340,000	340,000
	SHEET ALUMINUM									Equipment purchases		300,000	300,000	300,000
	Trailer requirements				30.0	square yards				Depreciation		275,000	275,000	275,000			EXHIBIT 10.
										Selling & admin		400,000	400,000	400,000			ACTUAL AND BUDGETED SALES
	Cost per square yard in the Spring				$ 15.00												November 2020 (actual)			$ 1,439,000
	Cost per square yard in December/January				$ 8.00												December 2020 (actual)			$ 2,131,000
										EXHIBIT 7.							January 2021 (budgeted)			$ 2,500,000
										ACCOUNTS PAYABLE FOR ALUMINUM AND OTHER MATERIALS							February 2021 (budgeted)			$ 4,000,000
	EXHIBIT 4.									PURCHASED DURING DECEMBER 2020							March 2021 (budgeted)			$ 5,000,000
	SHEET ALUMINUM BUDGETED COST									A/P: Aluminum		$ 700,000					April 2021 (budgeted)			$ 3,000,000
	$ 8.00	cost per square yard								A/P: Other materials		$ 150,000					May 2021 (budgeted)			$ 2,200,000
																	June 2021 (budgeted)			$ 1,100,000
	EXHIBIT 5.									EXHIBIT 8.							EXHIBIT 11.
	RAW MATERIALS INVENTORY									BANK LOAN DETAILS / MINIMUM CASH BALANCE REQUIRED							ACCOUNTS RECEIVABLE COLLECTION SCHEDULE
	Sheet aluminum on hand			50.0%	of the following month's					Requested loan amount				$ 800,000			Of a month's sales collected in:
	at the end of each month				production needs					Loan duration (in days)				90			Month of sale			25%
																	Month following sale			10%
	Raw materials inventory budget			39,000	square yards					Mininum cash balance required by directors				$ 100,000			Second month following sale			60%
	December 31, 2020																- The remainder is uncollectible -
																	EXHIBIT 12.
																	SUGGESTED CONSTANT PRODUCTION LEVELS
																	First suggested level			3,000
																	Second suggested level			3,500

Budget

PRODUCTION BUDGET									Steps/Hints
	Jan	Feb	March	April	May	June	Six Months		1. Use sales from Exhibit 9 (units) and Sales dollars - Exhibit 10
Budgeted sales									2. Use desired inventory from Exhibit 2
Add: desired ending inventory									3. Beginning inventory is given in Exhibit 2, and beginning inventory = prior month ending inventory
Total needs	-	-							4. Sheet metal required is Exhibit 3 and cost is provided in Exhibit 4
Less: beginning inventory		-							5. Ending iinventory for raw materials provided in Exhibit 5
Trailer production	-	-							6. Collections pattern is provided in Exhibit 11
									7. Expenses are provided in Exhibit 6 and Exhibit 7 provides payment information on accounts payable (materials purchases)
PURCHASES BUDGET									8. Borrowing and minimum cash balance provided in Exhibit 8. Balance at beginning of year is at minimum
	Jan	Feb	March	April	May	June	Six Months
Trailer production		-
Sheet metal needs per trailer
Total production needs		-
Add: desired ending inventory
Total materials needs
Less: beginning inventory
Total sheet metal purchases
Cost per square yard
Total cost	$ - 0
CASH BUDGET
	Jan	Feb	March	April	May	June	Six Months
Cash beginning balance
Add: cash collections
Month of sale
Month following sale
Second month following sale
Total cash collections	$ - 0
Total cash available	$ - 0
Less: cash disbursements
Aluminum	$ - 0
Other materials
Wages
Heat, light, & power
Equipment rental
Equipment purchases
Selling & admin
Total cash disbursements	$ - 0
Excess (deficiency)	$ - 0
Financing:
Borrowings: Original
Borrowings: Additional
Repayments
Interest
To be invested (excess)
Total financing	$ - 0	$ - 0
Cash balance ending	$ - 0	$ - 0