184 Understanding the Numbers
EXHIBIT 6.5 C&G’s Gif t Shop: 2000 cash budget.
Line Assumptions Nov-99 Dec-99 Jan Feb Mar
1 Total sales—units 5000 6430 3680 3530 2760
2 Selling price 100 100 100 100 100
3 TOTAL GROSS SALES 500000 643000 368000 353000 276000
4 TOTAL COST OF SALES 65% 325000 417950 239200 229450 179400
5 GROSS MARGIN 35% 175000 225050 128800 123550 96600
6
7 Selling expense 15% 75000 96450 55200 52950 41400
8 Administration (fixed) 23000 23000 23000 23000 23000
9 Administration (variable) 10% 50000 64300 36800 35300 27600
10 Depreciation expense 15yr sl amort 3472 3472 3472 3472 3472
11 TOTAL OPERATING EXPENSE 151472 187222 118472 114722 95472
12
13 OPERATING PROFIT 23528 37828 10328 8828 1128
14 Interest income 0 0 0 0 354
15 Interest expense − 1956 − 2872 − 1989 − 441 0
16 PROFIT BEFORE TAX 21572 34956 8339 8387 1482
17 Taxes at 35% 7550 12235 2918 2936 519
18 PROFIT AFTER TAX 14022 22721 5420 5452 963
19 Cumulative profit 5420 10872 11835
20 BALANCE SHEET
21 Cash 25000 25000 95836 160060
22 Accounts and interest receivable 65%,30/35%,60 637000 412050 300800 218904
23 Inventory Next month sales 239200 229450 179400 170950
24 TOTAL CURRENT ASSETS 901200 666500 576036 549914
25
26 Property, plant, & equipment (gross) 625000 625000 625000 625000
27 Accumulated depreciation 15yr sl amort − 41667 − 45139 − 48611 − 52083
28 Property, plant, & equipment (net) 583333 579861 576389 572917
29
30 TOTAL ASSETS 1484533 1246361 1152425 1122831
31
32 Bank loan (line of credit) 198949 44056 0 0
33 Accounts payable 239200 229450 179400 170950
34 Accrued expenses 198857 119908 114626 92519
35 TOTAL CURRENT LIABILITIES 637006 393414 294026 263469
36
37 Common stock 800000 800000 800000 800000
38 Retained earnings 47527 52947 58399 59362
39 TOTAL SHAREHOLDERS' EQUITY 847527 852947 858399 859362
40
41 TOTAL LIAB. +S/H EQUITY 1484533 1246361 1152425 1122831
42 STATEMENT OF CASH FLOWS (INDIRECT METHOD)
43 Net income 5420 5452 963
44 Depreciation 3472 3472 3472
45 Change in current assets (other than cash) 234700 161300 90346
46 Change in current liabilities (other than notes payable) − 88699 − 55332 − 30557
47 Net cash f low from operations 154893 114892 64224
48
49 Net cash f low from investing activities 0 0 0
50
51 Net cash f low from financing activities − 154893 − 44056 0
52
53 Net change in cash 0 70836 64224
54 Beginning cash 25000 95836
55 Ending cash 95836 160060