Week 2 Riordan Manfacturing

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Operating-Cash Budget

Riordan Manufacturing, Inc.
Operating Budget FY 2005
Oct. 2004 Nov. 2004 Dec. 2004 Jan. 2005 Feb. 2005 Mar. 2005 Apr. 2005 May 2005 Jun. 2005 Jul. 2005 Aug. 2005 Sep. 2005 Annual
Sales $3,976,000 $4,182,000 $4,798,000 $4,182,000 $4,190,000 $3,846,000 $3,460,000 $3,578,000 $5,210,600 $5,350,200 $4,726,000 $2,765,221 $50,264,021
Direct cost of Goods Sold $3,236,464 $3,404,148 $3,905,572 $3,404,148 $3,410,660 $3,130,644 $2,816,440 $2,912,492 $4,241,428 $4,355,063 $3,846,964 $2,250,890 $40,914,913
Gross Margin $739,536 $777,852 $892,428 $777,852 $779,340 $715,356 $643,560 $665,508 $969,172 $995,137 $879,036 $514,331 $9,349,108
Operating Expenses
Sales, Marketing & Other $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $85,000 $1,020,000
Depreciation $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $432,000
Quality Assurance $98,500 $98,500 $98,500 $98,500 $98,500 $98,500 $98,500 $98,500 $98,500 $98,500 $98,500 $98,500 $1,182,000
Research & Development $75,250 $75,250 $75,250 $75,250 $75,250 $75,250 $75,250 $75,250 $75,250 $75,250 $75,250 $75,250 $903,000
General & Administrative $151,000 $151,000 $151,000 $151,000 $151,000 $151,000 $151,000 $151,000 $151,000 $151,000 $151,000 $151,000 $1,812,000
Machining & Systems $54,500 $54,500 $54,500 $54,500 $54,500 $54,500 $54,500 $54,500 $54,500 $54,500 $54,500 $54,500 $654,000
Total Operating Expenses $500,250 $500,250 $500,250 $500,250 $500,250 $500,250 $500,250 $500,250 $500,250 $500,250 $500,250 $500,250 $6,003,000
Profit Before Interest & Taxes $239,286 $277,602 $392,178 $277,602 $279,090 $215,106 $143,310 $165,258 $468,922 $494,887 $378,786 $14,081 $3,346,108
Non-Operating Expenses
Interest Expense $21,450 $21,450 $21,450 $21,450 $21,450 $21,450 $21,450 $21,450 $21,450 $21,450 $21,450 $21,450 $257,400
Taxes $74,064 $87,092 $126,048 $87,092 $87,598 $65,843 $41,432 $48,895 $152,140 $160,969 $121,494 ($2,505) $1,050,161
Total Non-Operating Expenses $95,514 $108,542 $147,498 $108,542 $109,048 $87,293 $62,882 $70,345 $173,590 $182,419 $142,944 $18,945 $1,307,561
Net Profit after Taxes $143,772 $169,060 $244,680 $169,060 $170,042 $127,813 $80,428 $94,913 $295,331 $312,469 $235,842 ($4,863) $2,038,547
Riordan Manufacturing, Inc.
Cash Budget FY 2005
Oct. 2004 Nov. 2004 Dec. 2004 Jan. 2005 Feb. 2005 Mar. 2005 Apr. 2005 May 2005 Jun. 2005 Jul. 2005 Aug. 2005 Sep. 2005
Cash Inflows
Collections from Sales $2,535,000 $3,976,000 $4,182,000 $4,798,000 $4,182,000 $4,190,000 $3,846,000 $3,460,000 $3,578,000 $5,210,600 $5,350,200 $4,726,000
Interest Income $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500
Total Cash Inflows $2,546,500 $3,987,500 $4,193,500 $4,809,500 $4,193,500 $4,201,500 $3,857,500 $3,471,500 $3,589,500 $5,222,100 $5,361,700 $4,737,500
Cash Outflows
Payments for Raw Materials $735,000 $1,132,762 $1,191,452 $1,366,950 $1,191,452 $1,193,731 $1,095,725 $985,754 $1,019,372 $1,484,500 $1,524,272 $1,346,437
Payments for Direct Labor $2,103,702 $2,212,696 $2,538,622 $2,212,696 $2,216,929 $2,034,919 $1,830,686 $1,893,120 $2,756,928 $2,830,791 $2,500,527 $1,463,078
Operating Expenses $500,250 $500,250 $500,250 $500,250 $500,250 $500,250 $500,250 $500,250 $500,250 $500,250 $500,250 $500,250
Depreciation ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000)
Interest Expense $21,450 $21,450 $21,450 $21,450 $21,450 $21,450 $21,450 $21,450 $21,450 $21,450 $21,450 $21,450
Corporate Tax Payments $287,203 $240,532 $242,467 $279,957
Capital Expenditures $250,000 $250,000 $350,000
Total Cash Outflows $3,574,402 $3,831,159 $4,502,977 $4,315,346 $3,894,081 $3,954,882 $3,762,111 $3,364,574 $4,504,468 $4,800,991 $4,510,499 $3,575,173
Net Cash Flows ($1,027,902) $156,341 ($309,477) $494,154 $299,419 $246,618 $95,389 $106,926 ($914,968) $421,109 $851,201 $1,162,327
Beginning Cash on Hand $357,216 ($670,686) ($514,344) ($823,821) ($329,668) ($30,248) $216,370 $311,758 $418,684 ($496,284) ($75,174) $776,027
Ending Cash on Hand ($670,686) ($514,344) ($823,821) ($329,668) ($30,248) $216,370 $311,758 $418,684 ($496,284) ($75,174) $776,027 $1,938,354