Low Glucose, Inc. Assumptions Cost of Sales as a Percent 70% Total Fixed Costs (per month) 24,000 Sales collected in month of sale 30% Depreciation (per month) 18,000 Sales collected in month after sale 70% Variable Cost (% of sales) 11% Sales Commission (% of sales) 6% Balance Sheet, December 31, 2013 Cash 295,000 Account Payable 200,000 A/R 375,000 Accrued Commisions 60,000 Inventory 190,000 Common Stock 600,000 Fixed Assets 600,000 Retained Earnings 600,000 1,460,000 1,460,000 January February March April May Sales 370,000 420,000 435,000 440,000 390,000 Monthly Sales for the Period Ended March 31, 2014 January February March Total Apil May Total Sales in Dollars 370,000 420,000 435,000 1,225,000 440,000 390,000 Inventory Budget for Quarter Ended March 31, 2014 Cost of Monthly Sales 259,000 294,000 304,500 857,500 Add: Desired End Inv. Sales February 420,000 294,000 294,000 March 435,000 304,500 304,500 April 440,000 308,000 308,000 May 390,000 273,000 Required Ending Inventroy 598,500 612,500 581,000 Total Needs 857,500 906,500 639,800 Less: Beginning Inventory 190,000 598,500 612,500 190,000 Purchase Requirements 667,500 308,000 27,300 1,002,800 Cash Budget for Quarter Ended March 31, 2014 January February March Total Beginning Balance 295,000 Cash Receipts Total Cash Available Cash Expenditures Purchases Variable Costs Sales Commissions Fixed Expenses Total Cash Expenses Ending Cash Balance Cash Receipts for Quarter Ended March 31, 2014 January February March Total December Account Receivable January Sales February Sales March Sales Total Collections Pro Forma Income Statement January February March Total Sales Cost of Goods Sold Gross Margin Less Expenses Variable Costs Sales Commission Fixed Expense Total Expenses Net Income Pro Forma Balance Sheet Cash Accounts Payable Accounts Receivable Commissions Payable Inventory Common Stock Fixed Assets Retained Earnings Total Assets- Total Liabilities and Net Worth
