| Statement of Cashflows 2008-2009 | |||||
| Cash flows from operating activities | |||||
| Net Income | 58,45,936 | ||||
| Add Non Cash/Non Operating items: | |||||
| Interest | 1,53,311 | ||||
| Depreciation | 3,75,794 | 5,29,105 | |||
| Cash profits after tax | 63,75,041 | ||||
| Accounts receivable | 1,55,835 | ||||
| Merchandise inventory | 7,21,605 | ||||
| Prepaid expenses | 1,65,118 | ||||
| Accounts payable | 2,06,011 | ||||
| Accrued Compensation | (99,177) | ||||
| Accrued Other Liabilities | (1,09,149) | ||||
| Short term debt | 73,816 | ||||
| Rent-Building | 5,59,576 | ||||
| Rent-Vehicles | 1,04,101 | ||||
| Net cash provided by operating activities | 81,52,777 | ||||
| – | |||||
| Cash flow from investing activities | |||||
| Purchase of Plant | (3,20,320) | ||||
| Purchase of Other Assets | (56,328) | ||||
| Net cash provided by investing activities | (3,76,648) | ||||
| Cash flow from financing activities | |||||
| Rent Paid | (6,63,677) | ||||
| Interest paid | (1,53,311) | ||||
| Long term equity | (13,14,417) | ||||
| Issue of shares | 4,01,559 | ||||
| Dividend Paid | 59,62,544 | ||||
| Net cash provided by financing activities | (76,92,390) | – | |||
| Cash Balance at prior year-end | $ 15,57,575 | ||||
| Net Cash Added in the year | 83,739 | ||||
| Cash Balance at current year-end | $ 16,41,314 | ||||
| Proposed Balance Sheet 2010 | ||
| Amount | ||
| Current Assets | 2010 | |
| Cash | Balancing Figure | |
| Accounts receivable, net | 12053174 | Accounts Receivable is assumed to be 14% of Revenue |
| Inventory | 16557750 | Inventory is assumed to be 23% of Cost of Goods Sold |
| Prepaid expenses | 5487 | Constant |
| Total Current Assets | 28616411 | |
| Plant, Property, And Equipment | 73,53,575 | |
| Accumulated Depreciation | (25,73,751.25) | Assume Depreciation to be 35% |
| Net PP&E | 47,79,823.75 | Net Property plant |
| Other Assets | 64,526 | Constant |
| Total Assets | ############# | |
| Liabilities and Owners’ Equity | ||
| Current Liabilities | ||
| Accounts payable | 42,92,750 | 8% of COGS |
| Accrued compensation | 18,39,750 | 3% of COGS |
| Accrued other liabilities | 69,685 | |
| Line of credit | 0 | |
| Long-term debt due within one year | 6,71,068 | |
| Total Current Liabilities | ||
| Long-term debt | 30,16,179 | |
| Owners’ Equity | 23571329.66 | |
| Total Liabilities and Owners’ Equity | ||
| Total Liabilities and Owners’ Equity | 3,34,60,761 |
| Cap EX For the New Store | ||||
| Rent | ||||
| 1 | 2 | 3 | 4 | 5 |
| 279227 | 287604 | 296232 | 305119 | 314273 |
| PV @10% COC assumed | 261458 | 244820 | 229241 | 214653 |
| Total | 950172 | |||
| Initial Capex | ||||
| Building Improvements | $7,10,000 | |||
| Yard | $2,00,000 | |||
| IT / Computer Equipment | $3,50,000 | |||
| Furniture | $50,000 | |||
| Total Capex | 2260171.7 | |||
| Part 4 | ||||
| The preparation of the budget for the company needs a clear intepretation of the various income and costs parameters that needs to be looked into before budget can be prepared. The important questions that come are the growth in the revenue that is expected in the market. the planning of expenses that is going to be incurred in the long run. The management should answer this questions to intepret the chnages in the various assets such as the percentage collected and paid over the year transactiosn. These if presented in figures help to bring the same thing forward.This will chnage the effect in the P/L as the revenues and the other items will chnage as per the estimates and also the COGS would change and hence there would be change in the profits as well. So these questiosn help to decide the figures in the budgets. | ||||
ss
| Statement of Cashflows 2008-2009 | |||||
| Cash flows from operating activities | |||||
| Net Income | 58,45,936 | ||||
| Add Non Cash/Non Operating items: | |||||
| Interest | 1,53,311 | ||||
| Depreciation | 3,75,794 | 5,29,105 | |||
| Cash profits after tax | 63,75,041 | ||||
| Accounts receivable | 1,55,835 | ||||
| Merchandise inventory | 7,21,605 | ||||
| Prepaid expenses | 1,65,118 | ||||
| Accounts payable | 2,06,011 | ||||
| Accrued Compensation | (99,177) | ||||
| Accrued Other Liabilities | (1,09,149) | ||||
| Short term debt | 73,816 | ||||
| Rent-Building | 5,59,576 | ||||
| Rent-Vehicles | 1,04,101 | ||||
| Net cash provided by operating activities | 81,52,777 | ||||
| – | |||||
| Cash flow from investing activities | |||||
| Purchase of Plant | (3,20,320) | ||||
| Purchase of Other Assets | (56,328) | ||||
| Net cash provided by investing activities | (3,76,648) | ||||
| Cash flow from financing activities | |||||
| Rent Paid | (6,63,677) | ||||
| Interest paid | (1,53,311) | ||||
| Long term equity | (13,14,417) | ||||
| Issue of shares | 4,01,559 | ||||
| Dividend Paid | 59,62,544 | ||||
| Net cash provided by financing activities | (76,92,390) | – | |||
| Cash Balance at prior year-end | $ 15,57,575 | ||||
| Net Cash Added in the year | 83,739 | ||||
| Cash Balance at current year-end | $ 16,41,314 | ||||
