Isfi Nuraida - Anggaran Kas

FIGURE 8-1
Example 8.1: GLORIANA STORES

Expected Monthly Operating Revenues for First Six Months of
November December January
$ 600,000 $ 800,000 $ 500,000

Sales (Actuals and Forecast)
Sales Revenues Pct. Rec'd
Same month as sale 20% $ 100,000
lagged 1 month 50% $ 400,000
lagged 2 month 30% $ 180,000
Cash Inflow from Operating Revenues $ 680,000
FIGURE 8-2
Cash Outflows to Pay for Goods Purchased
Example 8.2: GLORIANA STORES

Expected Monthly Payments for Goods Purchased during the First Six M
$ 600,000 $ 800,000 $ 500,000
Sales (Actuals and Forecast)
Cost of Purchased Goods,
Percent of Sales 70%
Cost of Purchased Goods,
Dollars $ 420,000 $ 560,000 $ 350,000
Payments for Purchase Goods Pct. Rec'd

lagged 1 month 40% $ 224,000
lagged 2 month 50% $ 210,000
FIGURE 8-3
Cash Budget for Keystone Department Store
KEYSTONE DEPARTMENT SOTRE:
Cash Budget for First Sixt Months of Nex
Sales (Actuals and Forecast) $ 600,000 $ 950,000 $ 300,000

Sales Revenue or Income Percent
lagged 1 month 50% $ 475,000
lagged 2 month 30% $ 180,000
Cost of Goods Purchased for Sale
Cost of Purchased Goods
As Percent of Sales 70%
Dollar Value $ 420,000 $ 665,000 $ 210,000
Payments for Purchased Goods
Percent
lagged 1 month 40% $ 266,000
lagged 2 month 50% $ 210,000
Cash Outflow to Pay for Goods Sold $ 497,000
Operating and Other Expense
Wages and Salaries
Base $ 60,000
Incement, as Percent of Sales
above January Sales 20%
Incement, Dollar Value $ -
Total Wages and Salaries $ 60,000
Monthly Mortgage Payment $ 20,000
Utilities 3000
Interest on Ling-Term Loans 10000
Dividends to Shareholders $ 20,000
Taxes $ 6,000
Cash Outflow for Operating and Other Expenses $ 119,000
Summary of Cash Balances and Cash Fl
Beginning Cash Balance 20000
Cash Inflows (Outflows) from Operations
Cash Flow from Sales (inflow) $ 715,000
Cash Flow to Purchase Goods Sold (Outflow) $ (497,000)
Cash Flow to Operating and Other Expense (Outflow) $ (119,000)
Total Cash Flow From Operations $ 99,000
Cash Flow from Previous Month's Investing (inflow)
Return of Principal Inested 0
Interest Earned 0
Cash Flow from Previous Month Borrowing (Outflow)
Loan Payof -65000
Interested Paid -433.333333333
Unadjusted Cash Balance before New Borrowing
or Investing $ 53,567
New Borrowing or Investing
Amount Invested 0 13566.66666667
Amount Borrowed 65000 0
Ending Cash Balance 20000 $ 40,000
Calculations of Short-Term Borrowing and Investing
Minimum Cash Balance 15000
Maximum Cash Balance 40000
Annual Rate for Investing 6%
Annual Rate for Borrowing 8%
Reconcilliation of Cash Flow for January 1 to June 30

Cash Inflows
Beginning Balance 20000
Total Collection $ 3,170,000
Short-Term Interest Income $ 68
Total Cash Inflows 3190067.833333
ple 8.1: GLORIANA STORES
rating Revenues for First Six Months of Next Year
February March April May June
$ 450,000 $ 550,000 $ 600,000 $ 625,000 $ 600,000
$ 90,000 $ 110,000 $ 120,000 $ 125,000 $ 120,000

$ 250,000 $ 225,000 $ 275,000 $ 300,000 $ 312,500
$ 240,000 $ 150,000 $ 135,000 $ 165,000 $ 180,000
$ 580,000 $ 485,000 $ 530,000 $ 590,000 $ 612,500
ple 8.2: GLORIANA STORES

Goods Purchased during the First Six Months of Next Year
February March April May June
$ 450,000 $ 550,000 $ 600,000 $ 625,000 $ 600,000
$ 315,000 $ 385,000 $ 420,000 $ 437,500 $ 420,000
$ 31,500 $ 38,500 $ 42,000 $ 43,750 $ 42,000

$ 140,000 $ 126,000 $ 154,000 $ 168,000 $ 175,000
$ 280,000 $ 175,000 $ 157,500 $ 192,500 $ 210,000
$ 451,500 $ 339,500 $ 353,500 $ 404,250 $ 427,000
YSTONE DEPARTMENT SOTRE: Part a

ash Budget for First Sixt Months of Next Year
February March April May June 6 Month-Total
$ 375,000 $ 450,000 $ 600,000 $ 550,000 $ 600,000 $ 2,875,000
$ 75,000 $ 90,000 $ 120,000 $ 110,000 $ 120,000 $ 575,000

$ 150,000 $ 187,500 $ 225,000 $ 300,000 $ 275,000 $ 1,612,500
$ 285,000 $ 90,000 $ 112,500 $ 135,000 $ 180,000 $ 982,500
$ 510,000 $ 367,500 $ 457,500 $ 545,000 $ 575,000 $ 3,170,000
$ 262,500 $ 315,000 $ 420,000 $ 385,000 $ 420,000 $ 2,012,500
$ 26,250 $ 31,500 $ 42,000 $ 38,500 $ 42,000 $ 201,250

$ 84,000 $ 105,000 $ 126,000 $ 168,000 $ 154,000 $ 903,000
$ 332,500 $ 105,000 $ 131,250 $ 157,500 $ 210,000 $ 1,146,250
$ 442,750 $ 241,500 $ 299,250 $ 364,000 $ 406,000 $ 2,250,500
$ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 360,000
$ 15,000 $ 30,000 $ 60,000 $ 50,000 $ 60,000 $ 215,000

$ 75,000 $ 90,000 $ 120,000 $ 110,000 $ 120,000 $ 575,000
$ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 120,000
3000 3000 3000 3000 3000 $ 18,000
10000 10000 10000 10000 10000 $ 60,000
$ - $ - $ 20,000 $ - $ - $ 40,000
$ - $ - $ 7,000 $ - $ - $ 13,000
$ 108,000 $ 123,000 $ 180,000 $ 143,000 $ 153,000 $ 826,000
Summary of Cash Balances and Cash Flows
40000 15000 15870.39666667 15000 31981.19931111 $ 137,852
$ 510,000 $ 367,500 $ 457,500 $ 545,000 $ 575,000 $ 3,170,000

$ (442,750) $ (241,500) $ (299,250) $ (364,000) $ (406,000) $ (2,250,500)
$ (108,000) $ (123,000) $ (180,000) $ (143,000) $ (153,000) $ (826,000)
$ (40,750) $ 3,000 $ (21,750) $ 38,000 $ 16,000 $ 93,500
13566.66666667 0 0 0 0 $ 13,567
67.8333333333 0 0 0 0 $ 68
$ -
0 -2115.5 0 -20879.6033333 0 $ (87,995)
0 -14.1033333333 0 -139.197355556 0 $ (587)
$ 12,885 $ 15,870 $ (5,880) $ 31,981 $ 47,981
0 0 0 0 7981.199311111
2115.5 0 20879.60333333 0 0
$ 15,000 $ 15,870 $ 15,000 $ 31,981 $ 40,000
n of Cash Flow for January 1 to June 30
Cash Outflows
Repay Beginning Short-Term Loan $ 65,000.00
Inventory Payments $ 2,250,500.00
Wages and Salaries $ 575,000.00
Mortgage and Salaries $ 120,000.00
Utilities $ 18,000.00
Interst on Long-Term Loans $ 60,000.00
Dividens to Shareholders $ 40,000.00
Taxes $ 13,000.00
Capital Outlays $ -
Interest on Short-Term Loans $ 586.63
Ending Cash Balance $ 40,000.00
Current Investing $ 7,981.20
Total Cash Outflows $ 3,190,067.83
FIGURE 8.5
Cash Budget for Keystone Department Store
KEYSTONE DEPARTMENT STO
Cash budget for First Six Mounth
November Desember Januari
Sales (Actuals for Forecast) $ 600,000 $ 950,000 $ 300,000

Percent
Sales Revenue or Income
lagged 1 month 70% $ 665,000
laged 2 month 20% $ 120,000
Cost of Goods Purchased f
Cost of Purchased Goods
As Percent of Sale 70%
Dollar Value Rp 420,000 Rp 665,000 Rp 210,000
Payment for Purchased Goods
Percent
Same month as purchase 10% $ 21,000.00
lagged 1 month 75% $ 498,750.00
lagged 2 month 15% $ 63,000.00
Cash Outflow to Pay for Goods $ 582,750
Operating and Other Exp
Wages and Salaries
Base $ 60,000
Incement, as Percent of Sales
above January Sales 20%
Incement, Dollar Value $ -
Total Wages and Salaries $ 60,000
Monthly Mortgage Payment $ 20,000
Utilities $ 3,000
Interest on Long-Term Loans $ 10,000
Dividends to Shareholders $ 20,000
Taxes $ 6,000
Cash Outflow for Operating and Other Expense $ 119,000
Summary of Cash Balance and
Beginning Cash Balance $ 20,000
Cash Inflows (Outflows) from Operations
Cash Flow from Sales (Inflow) $ 815,000
Cash Flow to Purchase Goods Sold (Outflow) $ (582,750)
Cash Flow to Operating and Other Expense (Outflow) $ (119,000)
Total Cash Flow From Operations $ 113,250.00
Cash Flow from Previous Month's Investing (inflow)
Return of Principal Invested $ -
Interest Earned $ -
Cash Flow from Previous Month Borrowing (Outflow)
Loan Payof $ (65,000.00)
Interest Paid $ (433.33)
Unjusted Cash Balance Before New Borrowing or Investing $ 67,817

New Borrowing or Investing
Amount Invested $ - $ 27,817
Amount Borrowed $ 65,000 $ -
Ending Cash Balance $ 20,000 $ 40,000.00
Calculations of Short -Term Borrowing and Investing
Minimum Cash Balance $ 15,000
Maximum Cash Balance $ 40,000
Annual Rate for Investing 6%
Ending cash balance 8%
EYSTONE DEPARTMENT STORE: Part a
budget for First Six Mounth of Next Year
Februari Maret April Mei Juni 6 Month - Total
$ 375,000 $ 450,000 $ 600,000 $ 550,000 $ 600,000 $ 2,875,000
$ 37,500 $ 45,000 $ 60,000 $ 55,000 $ 60,000 $ 287,500

$ 210,000 $ 262,500 $ 315,000 $ 420,000 $ 385,000 $ 2,257,500
$ 190,000 $ 60,000 $ 75,000 $ 90,000 $ 120,000 $ 655,000
$ 437,500 $ 367,500 $ 450,000 $ 565,000 $ 565,000 $ 3,200,000
Rp 262,500 Rp 315,000 Rp 420,000 Rp 385,000 Rp 420,000 Rp 2,012,500
$ 26,250.00 $ 31,500.00 $ 42,000.00 $ 38,500.00 $ 42,000.00 $ 201,250.00

$ 157,500.00 $ 196,875.00 $ 236,250.00 $ 315,000.00 $ 288,750.00 $ 1,693,125.00
$ 99,750.00 $ 31,500.00 $ 39,375.00 $ 47,250.00 $ 63,000.00 $ 343,875.00
$ 283,500 $ 259,875 $ 317,625 $ 400,750 $ 393,750 $ 2,238,250.00
$ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 360,000
$ 15,000 $ 30,000 $ 60,000 $ 50,000 $ 60,000 $ 215,000

$ 75,000 $ 90,000 $ 120,000 $ 110,000 $ 120,000 $ 575,000
$ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 120,000
$ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 18,000
$ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 60,000
$ - $ - $ 20,000 $ - $ - $ 40,000
$ - $ - $ 7,000 $ - $ - $ 13,000
$ 108,000 $ 123,000 $ 180,000 $ 143,000 $ 153,000 $ 826,000
mmary of Cash Balance and Cash Flows
$ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 40,000 $ 220,000
$ 437,500 $ 367,500 $ 450,000 $ 565,000 $ 565,000 $ 3,200,000

$ (283,500) $ (259,875) $ (317,625) $ (400,750) $ (393,750) $ (2,238,250)
$ (108,000) $ (123,000) $ (180,000) $ (143,000) $ (153,000) $ (826,000)
$ 46,000.00 $ (15,375.00) $ (47,625.00) $ 21,250.00 $ 18,250.00 $ 135,750
$ 27,816.67 $ 73,955.75 $ 58,950.53 $ 11,620.28 $ 32,928.38 $ 205,272

$ 139.08 $ 369.78 $ 294.75 $ 58.10 $ 164.64 $ 1,026
$ - $ - $ - $ - $ - $ (65,000)
$ - $ - $ - $ - $ - $ (433)
$ 113,956 $ 98,951 $ 51,620 $ 72,928 $ 91,343
$ 73,956 $ 58,951 $ 11,620 $ 32,928 $ 51,343

$ - $ - $ - $ - $ -
$ 40,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 40,000.00 $ 240,000
Figure 8.7
Dec-96
SALES
Percent of annual
Forecast demand, units 1,200
Sales completed, units 1,200
Unit selling price $ 920
Sales completed, dollars $ 1,104,000
MANUFACTURING: Strategy #1
Workdays
Units output
Direct labor cost, $/ unit 5%
Material cost, $/ unit 3%
Direct labor cost, total
Material cost, total
Total manufacturiing cost
INVENTORY LEVEL
Start of month, units
End of month, units 3400
Average, units
INVENTORY VALUE, AT COST
Start of month
Added
Total before sales
Average unit cost of those sold
End of month (total after sales) $ 2,035,000
Average value of inventory
CASH INFLOWS FROM SALES
Cash from sales last month 66.67%
Cash from sales this month 33.33%
Total sales receipt (cash inflow)
MISCELLANEOUS EXPENSES
Salaries increase in Augst 5%
Advertising pct of preceding sales 2.5%
Commissions pct of sales 4%
Fringe benefits pct of wages and salaries 41%
Interest onn long-term notes
Inventory holding cost pct of avg inventory 2%
Long-term leases
Income tax
Dividends to shareholders
Total miscellaneaous expenses
Cost of manufacturing labor and materials
CASH OUTFLOW FROM OPERATIONS
NET CASH FLOW FROM OPERATIONS
CASH FLOWS FOR FINANCIAL ACTIVITIES
Opening cash balance
Return of previous invested principal
Interest inflow from previous invesing
Payoff of previous borrowed principal
Interest outflow for previous borrowing
Cash balance before new short-term investing
or borrowing
New short-term investing
New short-term borrowing
Ending cash balance 45000
Cash balance policy

Annual Interest Rate for borrowing 7%
Annual Interest Rate for Investing 5%
FIGURE 8.9
ASHLEY MANUFACTURING: Strateg
Cash Inflow-Outflow Reconciliation for the Year
Inflow
Starting cash balance $ 45,000
Sales receipt $ 30,048,000
Interest earned on short-term investing $ 82,728
Total $ 30,175,728
Other Information for Comperison of S

Inventory holding cost for the year $ 356,350
Net cash flow from opertaion for the year $ 2,849,360
Figure 8.7
ASHLEY MANUFACTURING: Strate
Jan-97 Feb-97 Mar-97 Apr-97
5% 7% 9% 11%
1,600 2,240 2,880 3,520
1,600 2,240 2,880 3,520
$ 920 $ 920 $ 920 $ 920
$ 1,472,000 $ 2,060,800 $ 2,649,600 $ 3,238,400
19 19 21 22
2,492 2,492 2,754 2,885
$ 145.00 $ 145.00 $ 145.00 $ 145.00
$ 460.00 $ 461.15 $ 462.30 $ 463.46
$ 361,311 $ 361,311 $ 399,344 $ 418,361
$ 1,146,230 $ 1,149,095 $ 1,273,228 $ 1,337,192
$ 1,507,541 $ 1,510,407 $ 1,672,572 $ 1,755,553
3,400 4,292 4,544 4,418

4,292 4,544 4,418 3,783
3,846 4,418 4,481 4,100
$ 2,035,000 $ 2,580,515 $ 2,740,067 $ 2,671,215

$ 1,507,541 $ 1,510,407 $ 1,672,572 $ 1,755,553
$ 3,542,541 $ 4,090,922 $ 4,412,639 $ 4,426,768
601.27 603.06 604.66 606.16
$ 2,580,515 $ 2,740,067 $ 2,671,215 $ 2,293,079
2,307,758 2,660,291 2,705,641 2,482,147
736,000 981,333 1,373,867 1,766,400

490,667 686,933 883,200 1,079,467
$ 1,226,667 $ 1,668,267 $ 2,257,067 $ 2,845,867
80,000 80,000 80,000 80,000

27,600.0 36,800.0 51,520.0 66,240.0
$ 58,880 $ 82,432 $ 105,984 $ 129,536
$ 180,938 $ 180,938 $ 196,531 $ 204,328
12000 12000 12000 12000
46,155 53,206 54,113 49,643
85000 85000 85000 85000
$ 100,000
$ 50,000 $ 50,000
$ 540,573 $ 530,376 $ 685,148 $ 676,747
$ 1,507,541 $ 1,510,407 $ 1,672,572 $ 1,755,553
$ 2,048,114 $ 2,040,782 $ 2,357,720 $ 2,432,300
$ (821,447) $ (372,515) $ (100,653) $ 413,567
$ 45,000 $ 30,000 $ 30,000 $ 30,000
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ (806,447) $ (1,183,667) $ (1,291,225)
$ - $ (4,704.28) $ (6,904.72) $ (7,532.14)
$ (776,447) $ (1,153,667) $ (1,261,225) $ (855,190)

$ - $ - $ - $ -
$ 806,447 $ 1,183,667 $ 1,291,225 $ 885,190
$ 30,000 $ 30,000 $ 30,000 $ 30,000
FIGURE 8.9
ASHLEY MANUFACTURING: Strategy #1
Outflow
Manufacturing labor and material
Other operating expense
Interest paid on short-term borrowing
End of-year short-term investment
Ending cash balance
Total
Other Information for Comperison of Strategies
End-of-Year Numbers
Inventory units
Inventory value at cost
Inventory + short-term investment
Figure 8.8
May-97 Jun-97 Jul-97 Aug-97
14% 12% 11% 9%

4,480 3,840 3,520 2,880
4,480 3,840 3,520 2,880
$ 920 $ 960 $ 960 $ 960
$ 4,121,600 $ 3,686,400 $ 3,379,200 $ 2,764,800
21 21 22 21
2,754 2,754 2,885 2,754
$ 145.00 $ 145.00 $ 152.25 $ 152.25
$ 464.62 $ 465.78 $ 466.94 $ 468.11
$ 399,344 $ 399,344 $ 439,279 $ 419,311
$ 1,279,602 $ 1,282,801 $ 1,347,246 $ 1,289,223
$ 1,678,946 $ 1,682,145 $ 1,786,525 $ 1,708,534
3,783 2,057 971 336

2,057 971 336 210
2,920 1,514 654 273
$ 2,293,079 $ 1,249,899 $ 591,844 $ 207,465

$ 1,678,946 $ 1,682,145 $ 1,786,525 $ 1,708,534
$ 3,972,025 $ 2,932,044 $ 2,378,369 $ 1,915,999
607.62 609.43 616.73 619.97
$ 1,249,899 $ 591,844 $ 207,465 $ 130,498
1,771,489 920,871 399,654 168,981
2,158,933 2,747,733 2,457,600 2,252,800

1,373,867 1,228,800 1,126,400 921,600
$ 3,532,800 $ 3,976,533 $ 3,584,000 $ 3,174,400
80,000 80,000 80,000 84000

80,960.0 103,040.0 92,160.0 84,480.0
$ 164,864 $ 147,456 $ 135,168 $ 110,592
$ 196,531 $ 196,531 $ 212,904 $ 206,358
12000 12000 12000 12000
35,430 18,417 7,993 3,380
85000 85000 85000 85000
$ 120,000
$ 50,000
$ 654,785 $ 762,445 $ 675,225 $ 585,809
$ 1,678,946 $ 1,682,145 $ 1,786,525 $ 1,708,534
$ 2,333,731 $ 2,444,590 $ 2,461,750 $ 2,294,344
$ 1,199,069 $ 1,531,944 $ 1,122,250 $ 880,056
$ 30,000 $ 50,000 $ 50,000 $ 50,000
$ - $ 288,716 $ 1,821,862 $ 2,951,703
$ - $ 1,203 $ 7,591 $ 12,299
$ (885,190) $ - $ - $ -
$ (5,163.61) $ - $ - $ -
$ 338,716 $ 1,871,862 $ 3,001,703 $ 3,894,059

$ 288,716 $ 1,821,862 $ 2,951,703 $ 3,844,059
$ - $ - $ - $ -
$ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 19,676,512
$ 7,522,128
$ 24,305
$ 2,902,784
$ 50,000
$ 30,175,728
3,400
$ 2,121,692
$ 5,024,476
Figure 8.8
Sep-97 Oct-97 Nov-97 Dec-97
7% 6% 5% 4%
2,240 1,920 1,600 1,280
2,240 1,920 1,600 1,280
$ 960 $ 960 $ 960 $ 960
$ 2,150,400 $ 1,843,200 $ 1,536,000 $ 1,228,800
21 23 19 15
2,754 3,016 2,492 1,967
$ 152.25 $ 152.25 $ 152.25 $ 152.25
$ 469.28 $ 470.45 $ 471.63 $ 472.81
$ 419,311 $ 459,246 $ 379,377 $ 299,508
$ 1,292,446 $ 1,419,075 $ 1,175,210 $ 930,117
$ 1,711,757 $ 1,878,321 $ 1,554,587 $ 1,229,625
210 725 1,821 2,713

725 1,821 2,713 3,400
468 1,273 2,267 3,056
$ 130,498 $ 450,275 $ 1,133,481 $ 1,690,822

$ 1,711,757 $ 1,878,321 $ 1,554,587 $ 1,229,625
$ 1,842,255 $ 2,328,595 $ 2,688,068 $ 2,920,447
621.42 622.46 623.28 624.03
$ 450,275 $ 1,133,481 $ 1,690,822 $ 2,121,692
290,386 791,878 1,412,152 1,906,257
1,843,200 1,433,600 1,228,800 1,024,000

716,800 614,400 512,000 409,600
$ 2,560,000 $ 2,048,000 $ 1,740,800 $ 1,433,600
84000 84000 84000 84000

69,120.0 53,760.0 46,080.0 38,400.0
$ 86,016 $ 73,728 $ 61,440 $ 49,152
$ 206,358 $ 222,731 $ 189,985 $ 157,238
12000 12000 12000 12000
5,808 15,838 28,243 38,125
85000 100000 100000 100000
$ 120,000 $ 130,000
$ 50,000
$ 668,301 $ 612,056 $ 521,748 $ 608,916
$ 1,711,757 $ 1,878,321 $ 1,554,587 $ 1,229,625
$ 2,380,059 $ 2,490,377 $ 2,076,334 $ 1,838,540
$ 179,941 $ (442,377) $ (335,534) $ (404,940)
$ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 3,844,059 $ 4,040,017 $ 3,614,473 $ 3,293,999
$ 16,017 $ 16,833 $ 15,060 $ 13,725
$ - $ - $ - $ -
$ - $ - $ - $ -
$ 4,090,017 $ 3,664,473 $ 3,343,999 $ 2,952,784

$ 4,040,017 $ 3,614,473 $ 3,293,999 $ 2,902,784
$ - $ - $ - $ -
$ 50,000 $ 50,000 $ 50,000 $ 50,000
All 1997
32,000
32,000
$ 31,235,200
244
32,000
$ 4,755,049
$ 14,921,462
$ 19,676,512
$ 30,048,000
980,000
750,160
1,205,248
2,351,370
144,000
356,350
1,065,000
470,000
200,000
7,522,128
$ 19,676,512
$ 2,849,360
$ 82,728
$ (24,305)
Figure 8.7
Dec-96
SALES
Percent of annual
Workdays
Units output
Direct labor cost, $/ unit 5%
Material cost, $/ unit 3%
Total manufacturiing cost
INVENTORY LEVEL
Average, units
Start of month
Added
Total before sales
Total sales receipt (cash inflow)
Salaries increase in Augst 5%
Interest onn long-term notes
Long-term leases
Income tax
Total miscellaneaous expenses
Interest inflow from previous invesing
Cash balance before new short-term investing
or borrowing
Ending cash balance 45000
Cash balance policy

FIGURE 8.9
ASHLEY MANUFACTURING: Strateg
Inflow
Total $ 30,175,728
Other Information for Comperison of S

Net cash flow from opertaion for the year $ 2,849,360
Figure 8.7
ASHLEY MANUFACTURING: Strate
5% 7% 9% 11%
1,600 2,240 2,880 3,520
1,600 2,240 2,880 3,520
$ 920 $ 920 $ 920 $ 920
$ 1,472,000 $ 2,060,800 $ 2,649,600 $ 3,238,400
19 19 21 22
2,492 2,492 2,754 2,885
$ 145.00 $ 145.00 $ 145.00 $ 145.00
$ 460.00 $ 461.15 $ 462.30 $ 463.46
$ 361,311 $ 361,311 $ 399,344 $ 418,361
$ 1,146,230 $ 1,149,095 $ 1,273,228 $ 1,337,192
$ 1,507,541 $ 1,510,407 $ 1,672,572 $ 1,755,553
3,400 4,292 4,544 4,418

4,292 4,544 4,418 3,783
3,846 4,418 4,481 4,100
$ 2,035,000 $ 2,580,515 $ 2,740,067 $ 2,671,215

$ 1,507,541 $ 1,510,407 $ 1,672,572 $ 1,755,553
$ 3,542,541 $ 4,090,922 $ 4,412,639 $ 4,426,768
601.27 603.06 604.66 606.16
$ 2,580,515 $ 2,740,067 $ 2,671,215 $ 2,293,079
2,307,758 2,660,291 2,705,641 2,482,147
736,000 981,333 1,373,867 1,766,400

490,667 686,933 883,200 1,079,467
$ 1,226,667 $ 1,668,267 $ 2,257,067 $ 2,845,867
80,000 80,000 80,000 80,000

27,600.0 36,800.0 51,520.0 66,240.0
$ 58,880 $ 82,432 $ 105,984 $ 129,536
$ 180,938 $ 180,938 $ 196,531 $ 204,328
12000 12000 12000 12000
46,155 53,206 54,113 49,643
85000 85000 85000 85000
$ 100,000
$ 50,000 $ 50,000
$ 540,573 $ 530,376 $ 685,148 $ 676,747
$ 1,507,541 $ 1,510,407 $ 1,672,572 $ 1,755,553
$ 2,048,114 $ 2,040,782 $ 2,357,720 $ 2,432,300
$ (821,447) $ (372,515) $ (100,653) $ 413,567
$ 45,000 $ 30,000 $ 30,000 $ 30,000
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ (806,447) $ (1,183,667) $ (1,291,225)
$ - $ (4,704.28) $ (6,904.72) $ (7,532.14)
$ (776,447) $ (1,153,667) $ (1,261,225) $ (855,190)

$ - $ - $ - $ -
$ 806,447 $ 1,183,667 $ 1,291,225 $ 885,190
$ 30,000 $ 30,000 $ 30,000 $ 30,000
FIGURE 8.9
Outflow
Manufacturing labor and material
Other operating expense
Interest paid on short-term borrowing
End of-year short-term investment
Ending cash balance
Total
End-of-Year Numbers
Inventory units
Inventory + short-term investment
Figure 8.8
14% 12% 11% 9%

4,480 3,840 3,520 2,880
4,480 3,840 3,520 2,880
$ 920 $ 960 $ 960 $ 960
$ 4,121,600 $ 3,686,400 $ 3,379,200 $ 2,764,800
21 21 22 21
2,754 2,754 2,885 2,754
$ 145.00 $ 145.00 $ 152.25 $ 152.25
$ 464.62 $ 465.78 $ 466.94 $ 468.11
$ 399,344 $ 399,344 $ 439,279 $ 419,311
$ 1,279,602 $ 1,282,801 $ 1,347,246 $ 1,289,223
$ 1,678,946 $ 1,682,145 $ 1,786,525 $ 1,708,534
3,783 2,057 971 336

2,057 971 336 210
2,920 1,514 654 273
$ 2,293,079 $ 1,249,899 $ 591,844 $ 207,465

$ 1,678,946 $ 1,682,145 $ 1,786,525 $ 1,708,534
$ 3,972,025 $ 2,932,044 $ 2,378,369 $ 1,915,999
607.62 609.43 616.73 619.97
$ 1,249,899 $ 591,844 $ 207,465 $ 130,498
1,771,489 920,871 399,654 168,981
2,158,933 2,747,733 2,457,600 2,252,800

1,373,867 1,228,800 1,126,400 921,600
$ 3,532,800 $ 3,976,533 $ 3,584,000 $ 3,174,400
80,000 80,000 80,000 84000

80,960.0 103,040.0 92,160.0 84,480.0
$ 164,864 $ 147,456 $ 135,168 $ 110,592
$ 196,531 $ 196,531 $ 212,904 $ 206,358
12000 12000 12000 12000
35,430 18,417 7,993 3,380
85000 85000 85000 85000
$ 120,000
$ 50,000
$ 654,785 $ 762,445 $ 675,225 $ 585,809
$ 1,678,946 $ 1,682,145 $ 1,786,525 $ 1,708,534
$ 2,333,731 $ 2,444,590 $ 2,461,750 $ 2,294,344
$ 1,199,069 $ 1,531,944 $ 1,122,250 $ 880,056
$ 30,000 $ 50,000 $ 50,000 $ 50,000
$ - $ 288,716 $ 1,821,862 $ 2,951,703
$ - $ 1,203 $ 7,591 $ 12,299
$ (885,190) $ - $ - $ -
$ (5,163.61) $ - $ - $ -
$ 338,716 $ 1,871,862 $ 3,001,703 $ 3,894,059

$ 288,716 $ 1,821,862 $ 2,951,703 $ 3,844,059
$ - $ - $ - $ -
$ 50,000 $ 50,000 $ 50,000 $ 50,000
ASHLEY MANUFACTURING SENSITIVITY ANALYSIS FOR RATE

Annual Rate End-of-Year
of interest Amount
for borrowing 2902783.77518847
6%
8%
10%
12%
$ 19,676,512
$ 7,522,128 Note: Annual rate of interest for borrowing is 2% more than rate for investin
$ 24,305
$ 2,902,784
$ 50,000 $200,000
$ 30,175,728
$150,000
INTEREST EARNED OR PAID
3,400
$ 2,121,692 Income
$100,000 fromfrom
Income
$ 5,024,476 Investing
Investing
$50,000
$-
$(50,000)
6% 7% 8%
Pa
Bo
Figure 8.8
7% 6% 5% 4%
2,240 1,920 1,600 1,280
2,240 1,920 1,600 1,280
$ 960 $ 960 $ 960 $ 960
$ 2,150,400 $ 1,843,200 $ 1,536,000 $ 1,228,800
21 23 19 15
2,754 3,016 2,492 1,967
$ 152.25 $ 152.25 $ 152.25 $ 152.25
$ 469.28 $ 470.45 $ 471.63 $ 472.81
$ 419,311 $ 459,246 $ 379,377 $ 299,508
$ 1,292,446 $ 1,419,075 $ 1,175,210 $ 930,117
$ 1,711,757 $ 1,878,321 $ 1,554,587 $ 1,229,625
210 725 1,821 2,713

725 1,821 2,713 3,400
468 1,273 2,267 3,056
$ 130,498 $ 450,275 $ 1,133,481 $ 1,690,822

$ 1,711,757 $ 1,878,321 $ 1,554,587 $ 1,229,625
$ 1,842,255 $ 2,328,595 $ 2,688,068 $ 2,920,447
621.42 622.46 623.28 624.03
$ 450,275 $ 1,133,481 $ 1,690,822 $ 2,121,692
290,386 791,878 1,412,152 1,906,257
1,843,200 1,433,600 1,228,800 1,024,000

716,800 614,400 512,000 409,600
$ 2,560,000 $ 2,048,000 $ 1,740,800 $ 1,433,600
84000 84000 84000 84000

69,120.0 53,760.0 46,080.0 38,400.0
$ 86,016 $ 73,728 $ 61,440 $ 49,152
$ 206,358 $ 222,731 $ 189,985 $ 157,238
12000 12000 12000 12000
5,808 15,838 28,243 38,125
85000 100000 100000 100000
$ 120,000 $ 130,000
$ 50,000
$ 668,301 $ 612,056 $ 521,748 $ 608,916
$ 1,711,757 $ 1,878,321 $ 1,554,587 $ 1,229,625
$ 2,380,059 $ 2,490,377 $ 2,076,334 $ 1,838,540
$ 179,941 $ (442,377) $ (335,534) $ (404,940)
$ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 3,844,059 $ 4,040,017 $ 3,614,473 $ 3,293,999
$ 16,017 $ 16,833 $ 15,060 $ 13,725
$ - $ - $ - $ -
$ - $ - $ - $ -
$ 4,090,017 $ 3,664,473 $ 3,343,999 $ 2,952,784

$ 4,040,017 $ 3,614,473 $ 3,293,999 $ 2,902,784
$ - $ - $ - $ -
$ 50,000 $ 50,000 $ 50,000 $ 50,000
ACTURING SENSITIVITY ANALYSIS FOR RATE OF BORROWING

Interest Earned and Paid for the Year
Income from Payments for
Investing -Borrowing Net
-20807 45330
-27810.7572667729 71531.1377007642
-34848.3214958957 97786.0427615819
-41920.0367158407 124092.405506653
borrowing is 2% more than rate for investing
me fromfrom
Income
sting
Investing
Net Interest
Earned
7% 8% 9% 10% 11% 12%
Payment for
Borrowing
All 1997
32,000
32,000
$ 31,235,200
244
32,000
$ 4,755,049
$ 14,921,462
$ 19,676,512
$ 30,048,000
980,000
750,160
1,205,248
2,351,370
144,000
356,350
1,065,000
470,000
200,000
7,522,128
$ 19,676,512
$ 2,849,360
$ 82,728
$ (24,305)
$ 58,424
11% 12%
Figure 8.12
Dec-96
SALES
Percent of annual
Forecast demand, units 1200
Sales completed, dollars 1104000
Lost sales, units -
lost sales, dollars -
MANUFACTURIG: Strategy #1
Workdays
Units output
Direct labor cost, $/unit increase in July 5%
Material cost, $/unit annual increase 3%
Total Manufacturing Cost
INVENTORY LEVEL
Average, units
Start of month
Added
Total before sales
Total sales receipts (cash inflow)
Salaries increase in August 5%
Interest on long-term notes
Inventory holding cosT pct of avg inventory 2%
Long-term leases
Income tax
Total miscellaneous expenses
Interest inflow from previous investing
Cash balance before new short-term investing or
borrowing
Ending cash balance $ 45,000
Cash balance policy

Annual Interest Rate for Iinvesting 5%
FIGURE 8.9
ASHLEY MANUFACTURING: St
Cash Inflow-Outflow Reconcilliation for The Year
Inflows
Total $ 29,082,359
Other Information for Comperison

Net cash flow from operations for the year $ 3,243,119
Lost sales, units $ 1,150
Lost sales, dollars $ 1,104,157
Figure 8.12
5% 7% 9% 11%
1600 2240 2880 3520
1600 2240 2880 3520
$ 920 $ 920 $ 920 $ 920
1472000 2060800 2649600 3238400
- - - -
- - - -
19 19 21 22
2336 2336 2582 2705
$ 145.00 $ 145.00 $ 145.00 $ 145.00
$ 460.00 $ 461.15 $ 462.30 $ 463.46
338729.508196721 338729.508196721 374385.245901639 392213.114754098
$ 1,074,590 $ 1,077,277 $ 1,193,651 $ 1,253,618
$ 1,413,320 $ 1,416,006 $ 1,568,036 $ 1,645,831
3400 4136 4232 3934

4136 4232 3934 3119
3768 4184 4083 3527
$ 2,035,000 $ 2,486,456 $ 2,551,823 $ 2,378,588

$ 1,413,320 $ 1,416,006 $ 1,568,036 $ 1,645,831
$ 3,448,320 $ 3,902,462 $ 4,119,859 $ 4,024,418
601.16 602.96 604.61 606.18
$ 2,486,456 $ 2,551,823 $ 2,378,588 $ 1,890,676
$ 2,260,728 $ 2,519,140 $ 2,465,205 $ 2,134,632
736,000 981,333 1,373,867 1,766,400

490,667 686,933 883,200 1,079,467
1,226,667 1,668,267 2,257,067 2,845,867
$ 80,000 $ 80,000 $ 80,000 $ 80,000

$ 27,600 $ 36,800 $ 51,520 $ 66,240
58,880 82,432 105,984 129,536
171679.098360656 171679.098360656 186297.950819672 193607.37704918
$ 12,000 $ 12,000 $ 12,000 $ 12,000
45214.5628259128 50382.7923335862 49304.1068546924 42692.6346291298
$ 85,000 $ 85,000 $ 85,000 $ 85,000
$ 100,000
$ 50,000 $ 50,000
$ 530,374 $ 518,294 $ 670,106 $ 659,076
$ 1,413,320 $ 1,416,006 $ 1,568,036 $ 1,645,831
$ 1,943,693 $ 1,934,300 $ 2,238,142 $ 2,304,907
$ (717,027) $ (266,033) $ 18,924 $ 540,960
$ 45,000 $ 30,000 $ 30,000 $ 30,000

$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ (702,027) $ (972,155) $ (958,902)
$ - $ (4,095) $ (5,671) $ (5,594)
$ (672,027) $ (942,155) $ (928,902) $ (393,535)

$ - $ - $ - $ -
$ 702,027 $ 972,155 $ 958,902 $ 423,535
$ 30,000 $ 30,000 $ 30,000 $ 30,000
FIGURE 8.9
Year
Outflow
45,000 Manufacturing labor and material
28,943,843 Other operating expenses
93,516 Interest paid on short-term borrowing
29,082,359 End of-year short-term investments
Ending cash balance
Total
End-of-Year Numbers
Inventory units
Inventory + short-term investments
Figure 8.13
14% 12% 11% 9%

4480 3840 3520 2880
4480 3802.9508196721 2704.9180327869 2581.9672131148
$ 920 $ 960 $ 960 $ 960
4121600 3650832.78688525 2596721.31147541 2478688.52459016
- 37 815 298
- 35,567 782,479 286,111
21 21 22 21
2582 2582 2705 2582
$ 145.00 $ 145.00 $ 152.25 $ 152.25
$ 464.62 $ 465.78 $ 466.94 $ 468.11
374385.245901639 374385.245901639 411823.770491803 393104.508196721
$ 1,199,627 $ 1,202,626 $ 1,263,043 $ 1,208,646
$ 1,574,012 $ 1,577,011 $ 1,674,867 $ 1,601,751
3119 1221 0 0
1221 0 0 0
2170 610 0 0
$ 1,890,676 $ 742,035 $ - $ -
$ 1,574,012 $ 1,577,011 $ 1,674,867 $ 1,601,751
$ 3,464,688 $ 2,319,045 $ 1,674,867 $ 1,601,751
607.74 609.80 619.19 620.36
$ 742,035 $ - $ - $ -
$ 1,316,355 $ 371,017 $ - $ -
2,158,933 2,747,733 2,433,889 1,731,148

1,373,867 1,216,944 865,574 826,230
3,532,800 3,964,678 3,299,462 2,557,377
$ 80,000 $ 80,000 $ 80,000 $ 84,000

$ 80,960 $ 103,040 $ 91,271 $ 64,918
164,864 146,033 103,869 99,148
186297.950819672 186297.950819672 201647.745901639 195612.848360656
$ 12,000 $ 12,000 $ 12,000 $ 12,000
26327.1026082555 7420.3453261447 0 0
$ 85,000 $ 85,000 $ 85,000 $ 85,000
$ 120,000
$ 50,000
$ 635,449 $ 739,792 $ 623,787 $ 540,678
$ 1,574,012 $ 1,577,011 $ 1,674,867 $ 1,601,751
$ 2,209,461 $ 2,316,803 $ 2,298,654 $ 2,142,429
$ 1,323,339 $ 1,647,875 $ 1,000,808 $ 414,948
$ 30,000 $ 50,000 $ 50,000 $ 50,000

$ - $ 877,333 $ 2,528,864 $ 3,540,209
$ - $ 3,656 $ 10,537 $ 14,751
$ (423,535) $ - $ - $ -
$ (2,471) $ - $ - $ -
$ 927,333 $ 2,578,864 $ 3,590,209 $ 4,019,907

$ 877,333 $ 2,528,864 $ 3,540,209 $ 3,969,907
$ - $ - $ - $ -
$ 50,000 $ 50,000 $ 50,000 $ 50,000
$ 18,446,730
$ 7,253,994
$ 17,830
$ 3,313,805
$ 50,000
$ 29,082,359
2550
$ 1,591,844
$ 4,905,649
Figure 8.13
7% 6% 5% 4%
2240 1920 1600 1280
2240 1920 1600 1280
$ 960 $ 960 $ 960 $ 960
2150400 1843200 1536000 1228800
- - - -
- - - -
21 23 19 15
2582 2828 2336 1844
$ 152.25 $ 152.25 $ 152.25 $ 152.25
$ 469.28 $ 470.45 $ 471.63 $ 472.81
393104.508196721 430543.032786885 355665.983606557 280788.934426229
$ 1,211,668 $ 1,330,383 $ 1,101,759 $ 871,984
$ 1,604,772 $ 1,760,926 $ 1,457,425 $ 1,152,773
0 342 1250 1986

342 1250 1986 2550
171 796 1618 2268
$ - $ 212,543 $ 778,120 $ 1,238,063

$ 1,604,772 $ 1,760,926 $ 1,457,425 $ 1,152,773
$ 1,604,772 $ 1,973,469 $ 2,235,545 $ 2,390,836
621.53 622.58 623.43 624.21
$ 212,543 $ 778,120 $ 1,238,063 $ 1,591,844
$ 106,272 $ 495,332 $ 1,008,091 $ 1,414,954
1,652,459 1,433,600 1,228,800 1,024,000

716,800 614,400 512,000 409,600
2,369,259 2,048,000 1,740,800 1,433,600
$ 84,000 $ 84,000 $ 84,000 $ 84,000

$ 61,967 $ 53,760 $ 46,080 $ 38,400
86,016 73,728 61,440 49,152
195612.848360656 210962.643442623 180263.053278689 149563.463114754
$ 12,000 $ 12,000 $ 12,000 $ 12,000
2125.4319102362 9906.6305288071 20161.8296508122 28299.0746036798
$ 85,000 $ 100,000 $ 100,000 $ 100,000
$ 120,000 $ 130,000
$ 50,000
$ 646,721 $ 594,357 $ 503,945 $ 591,415
$ 1,604,772 $ 1,760,926 $ 1,457,425 $ 1,152,773
$ 2,251,494 $ 2,355,283 $ 1,961,370 $ 1,744,188
$ 117,765 $ (307,283) $ (220,570) $ (310,588)
$ 50,000 $ 50,000 $ 50,000 $ 50,000

$ 3,969,907 $ 4,104,214 $ 3,814,032 $ 3,609,354
$ 16,541 $ 17,101 $ 15,892 $ 15,039
$ - $ - $ - $ -
$ - $ - $ - $ -
$ 4,154,214 $ 3,864,032 $ 3,659,354 $ 3,363,805

$ 4,104,214 $ 3,814,032 $ 3,609,354 $ 3,313,805
$ - $ - $ -
$ 50,000 $ 50,000 $ 50,000 $ 50,000
All 1997
32,000
30,850
$ 30,131,043
$ 1,150
$ 1,104,157
244
30000
$ 13,988,871
$ 18,446,730
$ 28,943,843
$ 980,000
$ 722,556
$ 1,161,082
$ 2,229,522
$ 144,000
$ 281,835
$ 1,065,000
$ 470,000
$ 200,000
$ 7,253,994
$ 18,446,730
$ 25,700,724
$ 3,243,119
$ 93,516
$ (17,830)
FIGURE 8.7
Dec-96 Jan-97
SALES
Percent of annual 5%
Forecast demand, units 1,200 1,600
Sales completed, units 1,200 1,600
Unit selling price $ 920.00 $ 920.00
Sales completed, dollars $ 1,104,000 $ 1,472,000
Workdays 19
Safety stock, percent of forecast demand 10%
Units produced on reguler time $ 2,336
Units produced on overtime $ -
Total units produced $ 2,336
Direct labor cost, $/unit increase in July 5% $ 145
Material cost, $/unit annual increase 3% $ 460
Direct labor cost, reguler time $ 338,730
Direct labor costm overtime $ -
Direct labor cost, total $ 338,730
Material cost, total $ 1,074,590
Total manufacturing cost $ 1,413,320
INVENTORY LEVEL
Start of month, units $ 3,400
End of month, units 3400 $ 4,136
Average, units $ 3,768
Start of month $ 2,035,000
Added $ 1,413,320
Total before sales $ 3,448,320
Average unit cost of those sold $ 601.16
End of month (total after sales) $ 2,035,000 $ 2,486,456
Average value of inventory $ 2,260,728
Cash from sales last month 66.67% $ 736,000
Cash from sales this month 33.33% $ 490,667
Total sales receipts (cash inflow) $ 1,226,667
MISCELLANEOUS EXPENSE
Salaries increase in August 5% $ 80,000
Advertising pct of preceding sales 2.5% $ 27,600
Commissions pct of sales 4% $ 58,880
Fringe benefits pct of wages and salaries 41% $ 171,679
Interest on long-term notes $ 12,000
Inventory holding cost pct of avg inventory 2% $ 45,215
Long-term leases $ 85,000
Income tax
Dividends to shareholders $ 50,000
Total miscellaneous expenses $ 530,374
Cost of manufacturing labor and materials $ 1,413,320
CASH OUTFLOW FROM OPERATIONS $ 1,943,693
NET CASH FLOW FROM OPERATIONS $ (717,027)
CASH FLOW FOR FINANCIAL ACTIVITIES
Opening cash balance $ 45,000
Return of previous invested principal $ -
Interest inflow from previous investing $ -
Payof of previous borrowed principal $ -
Interest outflow for previous borrowing $ -
Cash balance before new short-term investing or borrowing $ (672,027)

New short-term investing $ -
New short-term borrowing $ 702,027
Ending cash balance 45000 $ 30,000
Cash balance policy

FIGURE 8.9
Cash Inflow-Outflow Reconciliation fot The Year
Inflow
Sales receipts $ 30,048,000
Total $ 30,182,459

RE 8.7
Feb-97 Mar-97 Apr-97 May-97 Jun-97 Jul-97
7% 9% 11% 14% 12% 11%

2,240 2,880 3,520 4,480 3,840 3,520
2,240 2,880 3,520 4,480 3,840 3,520
$ 920.00 $ 920.00 $ 920.00 $ 920.00 $ 960.00 $ 960.00
$ 2,060,800 $ 2,649,600 $ 3,238,400 $ 4,121,600 $ 3,686,400 $ 3,379,200
19 21 22 21 21 22
$ 2,336 $ 2,582 $ 2,705 $ 2,582 $ 2,582 $ 2,705

$ - $ - $ - $ - $ 421 $ 783
$ 2,336 $ 2,582 $ 2,705 $ 2,582 $ 3,003 $ 3,488
$ 145 $ 145 $ 145 $ 145 $ 145 $ 152.25
$ 461 $ 462 $ 463 $ 465 $ 466 $ 467
$ 338,730 $ 374,385 $ 392,213 $ 374,385 $ 374,385 $ 411,824
$ - $ - $ - $ - $ 91,578 $ 178,836
$ 338,730 $ 374,385 $ 392,213 $ 374,385 $ 465,963 $ 590,660
$ 1,077,277 $ 1,193,651 $ 1,253,618 $ 1,199,627 $ 1,398,741 $ 1,628,698
$ 1,416,006 $ 1,568,036 $ 1,645,831 $ 1,574,012 $ 1,864,705 $ 2,219,358
$ 4,136 $ 4,232 $ 3,934 $ 3,119 $ 1,221 $ 384

$ 4,232 $ 3,934 $ 3,119 $ 1,221 $ 384 $ 352
$ 4,184 $ 4,083 $ 3,527 $ 2,170 $ 802 $ 368
$ 2,486,456 $ 2,551,823 $ 2,378,588 $ 1,890,676 $ 742,035 $ 236,976

$ 1,416,006 $ 1,568,036 $ 1,645,831 $ 1,574,012 $ 1,864,705 $ 2,219,358
$ 3,902,462 $ 4,119,859 $ 4,024,418 $ 3,464,688 $ 2,606,739 $ 2,456,335
$ 602.96 $ 604.61 $ 606 $ 608 $ 617 $ 634
$ 2,551,823 $ 2,378,588 $ 1,890,676 $ 742,035 $ 236,976 $ 223,303
$ 2,519,140 $ 2,465,205 $ 2,134,632 $ 1,316,355 $ 489,505 $ 230,140
$ 981,333 $ 1,373,867 $ 1,766,400 $ 2,158,933 $ 2,747,733 $ 2,457,600

$ 686,933 $ 883,200 $ 1,079,467 $ 1,373,867 $ 1,228,800 $ 1,126,400
$ 1,668,267 $ 2,257,067 $ 2,845,867 $ 3,532,800 $ 3,976,533 $ 3,584,000
$ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000

$ 36,800 $ 51,520 $ 66,240 $ 80,960 $ 103,040 $ 92,160
$ 82,432 $ 105,984 $ 129,536 $ 164,864 $ 147,456 $ 135,168
$ 171,679 $ 186,298 $ 193,607 $ 186,298 $ 186,298 $ 201,648
$ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000
$ 50,383 $ 49,304 $ 42,693 $ 26,327 $ 9,790 $ 4,603
$ 85,000 $ 85,000 $ 85,000 $ 85,000 $ 85,000 $ 85,000
$ 100,000 $ 120,000
$ 50,000 $ 50,000
$ 518,294 $ 670,106 $ 659,076 $ 635,449 $ 743,584 $ 660,579
$ 1,416,006 $ 1,568,036 $ 1,645,831 $ 1,574,012 $ 1,864,705 $ 2,219,358
$ 1,934,300 $ 2,238,142 $ 2,304,907 $ 2,209,461 $ 2,608,289 $ 2,879,937
$ (266,033) $ 18,924 $ 540,960 $ 1,323,339 $ 1,368,244 $ 704,063
$ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 50,000 $ 50,000

$ - $ - $ - $ - $ 877,333 $ 2,249,233
$ - $ - $ - $ - $ 3,656 $ 9,372
$ (702,027) $ (972,155) $ (958,902) $ (423,535) $ - $ -
$ (4,095) $ (5,671) $ (5,594) $ (2,471) $ - $ -
$ (942,155) $ (928,902) $ (393,535) $ 927,333 $ 2,299,233 $ 3,012,668

$ - $ - $ - $ 877,333 $ 2,249,233 $ 2,962,668
$ 972,155 $ 958,902 $ 423,535 $ - $ - $ -
$ 30,000 $ 30,000 $ 30,000 $ 50,000 $ 50,000 $ 50,000
RE 8.9
URING: Strategy #1
Outflow
Manufacturing labor and material $ 19,441,915
Other operating expenses $ 7,351,143
Interest paid on short-term borrowing 17830
End of-year short-term investments $ 3,321,571
Total $ 30,182,459
End-of-Year Numbers
Inventory units $ 2,838
Inventory value at cost $ 1,771,377
Inventory + short-term investments $ 5,092,948
FIGURE 8.8
Aug-97 Sep-97 Oct-97 Nov-97 Dec-97 All-1997
9% 7% 6% 5% 4%
2,880 2,240 1,920 1,600 1,280 32,000
2,880 2,240 1,920 1,600 1,280 32,000
$ 960.00 $ 960.00 $ 960.00 $ 960.00 $ 960.00
$ 2,764,800 $ 2,150,400 $ 1,843,200 $ 1,536,000 $ 1,228,800
21 21 23 19 15 244
$ 2,582 $ 2,582 $ 2,828 $ 2,336 $ 1,844 $ 30,000

$ 234 $ - $ - $ - $ - $ 1,438
$ 2,816 $ 2,582 $ 2,828 $ 2,336 $ 1,844
$ 152.25 $ 152.25 $ 152.25 $ 152.25 $ 152.25
$ 468 $ 469 $ 470 $ 472 $ 473
$ 393,105 $ 393,105 $ 430,543 $ 355,666 $ 280,789
$ 53,447 $ - $ - $ - $ -
$ 446,552 $ 393,105 $ 430,543 $ 355,666 $ 280,789
$ 1,318,200 $ 1,211,668 $ 1,330,383 $ 1,101,759 $ 871,984
$ 1,764,751 $ 1,604,772 $ 1,760,926 $ 1,457,425 $ 1,152,773
$ 352 $ 288 $ 630 $ 1,538 $ 2,274

$ 288 $ 630 $ 1,538 $ 2,274 $ 2,838
$ 320 $ 459 $ 1,084 $ 1,906 $ 2,556
$ 223,303 $ 180,732 $ 391,924 $ 957,457 $ 1,417,487

$ 1,764,751 $ 1,604,772 $ 1,760,926 $ 1,457,425 $ 1,152,773
$ 1,988,054 $ 1,785,505 $ 2,152,850 $ 2,414,882 $ 2,570,260
$ 628 $ 622 $ 623 $ 623 $ 624
$ 180,732 $ 391,924 $ 957,457 $ 1,417,487 $ 1,771,377
$ 202,018 $ 286,328 $ 674,691 $ 1,187,472 $ 1,594,432
$ 2,252,800 $ 1,843,200 $ 1,433,600 $ 1,228,800 $ 1,024,000

$ 921,600 $ 716,800 $ 614,400 $ 512,000 $ 409,600
$ 3,174,400 $ 2,560,000 $ 2,048,000 $ 1,740,800 $ 1,433,600 $ 30,048,000
$ 84,000 $ 84,000 $ 84,000 $ 84,000 $ 84,000 $ 980,000

$ 84,480 $ 69,120 $ 53,760 $ 46,080 $ 38,400 $ 750,160
$ 110,592 $ 86,016 $ 73,728 $ 61,440 $ 49,152 $ 1,205,248
$ 195,613 $ 195,613 $ 210,963 $ 180,263 $ 149,563 $ 2,229,522
$ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 144,000
$ 4,040 $ 5,727 $ 13,494 $ 23,749 $ 31,889 $ 307,213
$ 85,000 $ 85,000 $ 100,000 $ 100,000 $ 100,000 $ 1,065,000
$ 120,000 $ 130,000 $ 470,000
$ 50,000 $ 200,000
$ 575,725 $ 657,475 $ 597,944 $ 507,532 $ 595,004 $ 7,351,143
$ 1,764,751 $ 1,604,772 $ 1,760,926 $ 1,457,425 $ 1,152,773 $ 19,441,915
$ 2,340,476 $ 2,262,248 $ 2,358,870 $ 1,964,958 $ 1,747,777 $ 26,793,058
$ 833,924 $ 297,752 $ (310,870) $ (224,158) $ (314,177) $ 3,254,942
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000

$ 2,962,668 $ 3,808,936 $ 4,122,559 $ 3,828,866 $ 3,620,662
$ 12,344 $ 15,871 $ 17,177 $ 15,954 $ 15,086 $ 89,459
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ (17,830)
$ 3,858,936 $ 4,172,559 $ 3,878,866 $ 3,670,662 $ 3,371,571

$ 3,808,936 $ 4,122,559 $ 3,828,866 $ 3,620,662 $ 3,321,571
$ - $ - $ - $ - $ -
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
Dec-96
SALES
Percent of annual
Sales completed, units 1200
Workdays
Units produced on reguler time
Units produced on overtime
Total units produced
Direct labor cost, $/unit increase in July 5%
Material cost, $/unit annual increase 3%
Direct labor cost, reguler time
Direct labor costm overtime
Total manufacturing cost
INVENTORY LEVEL
Average, units
Start of month
Added
Total before sales
Total Sales Receipts (cash inflow)
MISCELLANEOUS EXPENSE
Salaries increase in August 5%
Interest on long-term notes
Long-term leases
Income tax
Total miscellaneous expenses
Interest inflow from previous investing
Payof of previous borrowed principal
Cash balance before new short-term investing or borrowing
Cash balance policy

Inflows
Starting cash balance $
Sales receipts $
Interest earned on short-term investing $
Total $
Inventory holding cost for the year $

Net cash flow from operations for the year $
Results for 12-Month Period

Safety stock, percent of forecast demand Net Operating Income
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
FIGURE 8.7
ASHLEY MA
Jan-97 Feb-97
5% 7%
1,600 2,240
1600 2240
$ 920 $ 920
$ 1,472,000 $ 2,060,800
19 19
$ 2,336 $ 2,336
0 0
2336 $ 2,336
$ 145.00 $ 145.00
$ 460 $ 461
$ 338,730 $ 338,730
$ - 0
$ 338,730 $ 338,730
$ 1,074,590 $ 1,077,277
$ 1,413,320 $ 1,416,006
3400 4136
4136 4232
3768 4184
$ 2,035,000 $ 2,486,456
$ 1,413,320 $ 1,416,006
$ 3,448,320 $ 3,902,462
601.16 602.96
$ 2,486,456 $ 2,551,823
$ 2,260,728 $ 2,519,140
$ 736,000 $ 981,333
$ 490,667 $ 686,933
$ 1,226,667 $ 1,668,267
ENSE
$ 80,000 $ 80,000
27600 36800
58880 82432
$ 171,679 $ 171,679
$ 12,000 $ 12,000
45214.5628259128 50382.7923335862
$ 85,000 $ 85,000
$ 50,000
$ 530,374 $ 518,294
$ 1,413,320 $ 1,416,006
$ 1,943,693 $ 1,934,300
$ (717,027) $ (266,033)
$ 45,000 $ 30,000
$ - $ -
$ - $ -
$ - $ (702,027)
$ - $ (4,095)
$ (672,027) $ (942,155)
$ - $ -
$ 702,027 $ 972,155
$ 30,000 $ 30,000
Cash Inflow-Outflow Reconciliation for the year

Outflows
45,000 Manufacturing labor and material
30,048,000 Other operating expenses
89,459 Interest paid on short-term borrowing
30,182,459 End of-year short-term investments
Ending cash balance
Total
Other Information for comparison of strategies
307,213 End-of-Year Numbers
3,254,942 Inventory units
SENSITIVITY OF SELECTED RESULTS TO SIZE OF END-OF
Inventory Holding Cost Production on Overtime, units

1150
1208
1265
1323
1381
1438
1496
1553
1611
1669
1726
Mar-97 Apr-97
9% 11%
2,880 3,520
2880 3520
$ 920 $ 920
$ 2,649,600 $ 3,238,400
21 22
$ 2,582 $ 2,705
0 0
$ 2,582 $ 2,705
$ 145.00 $ 145.00
$ 462 $ 463
$ 374,385 $ 392,213
0 0
$ 374,385 $ 392,213
$ 1,193,651 $ 1,253,618
$ 1,568,036 $ 1,645,831
4232 3934
3934 3119
4083 3527
$ 2,551,823 $ 2,378,588
$ 1,568,036 $ 1,645,831
$ 4,119,859 $ 4,024,418
604.61 606.18
$ 2,378,588 $ 1,890,676
$ 2,465,205 $ 2,134,632
$ 1,373,867 $ 1,766,400
$ 883,200 $ 1,079,467
$ 2,257,067 $ 2,845,867
$ 80,000 $ 80,000
51520 66240
105984 129536
$ 186,298 $ 193,607
$ 12,000 $ 12,000
49304.1068546924 42692.6346291298
$ 85,000 $ 85,000
$ 100,000
$ 50,000
$ 670,106 $ 659,076
$ 1,568,036 $ 1,645,831
$ 2,238,142 $ 2,304,907
$ 18,924 $ 540,960
$ 30,000 $ 30,000
$ - $ -
$ - $ -
$ (972,155) $ (958,902)
$ (5,671) $ (5,594)
$ (928,902) $ (393,535)
$ - $ -
$ 958,902 $ 423,535
$ 30,000 $ 30,000
e year
Outflows
or and material
xpenses
hort-term borrowing
term investments
ce
tegies
rs
cost
term investments
D RESULTS TO SIZE OF END-OF

Average Monthly Values
Overtime Labor Premium Average Monthly Inventory, units
$ 262,266 $ 1,933
$ 274,585 $ 1,967
$ 286,904 $ 2,001
$ 299,223 $ 2,035
$ 311,543 $ 2,068
$ 323,862 $ 2,102
$ 336,181 $ 2,136
$ 348,500 $ 2,170
$ 360,819 $ 2,204
$ 373,139 $ 2,238
$ 385,458 $ 2,272
FIGU
tegy #1
May-97 Jun-97 Jul-97
14% 12% 11%

4,480 3,840 3,520
4480 3840 3520
$ 920 $ 960 $ 960
$ 4,121,600 $ 3,686,400 $ 3,379,200
21 21 22
$ 2,582 $ 2,582 $ 2,705

0 421.0491803279 783.0819672131
$ 2,582 $ 3,003 $ 3,488
$ 145.00 $ 145.00 $ 152.25
$ 465 $ 466 $ 467
$ 374,385 $ 374,385 $ 411,824
0 91578.1967213113 178836.3442623
$ 374,385 $ 465,963 $ 590,660
$ 1,199,627 $ 1,398,741 $ 1,628,698
$ 1,574,012 $ 1,864,705 $ 2,219,358
3119 1221 384

1221 384 352
2170 802 368
$ 1,890,676 $ 742,035 $ 236,976

$ 1,574,012 $ 1,864,705 $ 2,219,358
$ 3,464,688 $ 2,606,739 $ 2,456,335
607.74 617.13 634.38
$ 742,035 $ 236,976 $ 223,303
$ 1,316,355 $ 489,505 $ 230,140
$ 2,158,933 $ 2,747,733 $ 2,457,600

$ 1,373,867 $ 1,228,800 $ 1,126,400
$ 3,532,800 $ 3,976,533 $ 3,584,000
$ 80,000 $ 80,000 $ 80,000

80960 103040 92160
164864 147456 135168
$ 186,298 $ 186,298 $ 201,648
$ 12,000 $ 12,000 $ 12,000
26327.1026082555 9790.1084291595 4602.7945097391
$ 85,000 $ 85,000 $ 85,000
$ 120,000
$ 50,000
$ 635,449 $ 743,584 $ 660,579
$ 1,574,012 $ 1,864,705 $ 2,219,358
$ 2,209,461 $ 2,608,289 $ 2,879,937
$ 1,323,339 $ 1,368,244 $ 704,063
$ 30,000 $ 50,000 $ 50,000

$ - $ 877,333 $ 2,249,233
$ - $ 3,656 $ 9,372
$ (423,535) $ - $ -
$ (2,471) $ - $ -
$ 927,333 $ 2,299,233 $ 3,012,668
$ 877,333 $ 2,249,233 $ 2,962,668
$ - $ - $ -
$ 50,000 $ 50,000 $ 50,000
$6,000,000
$5,900,000
$5,800,000
$5,700,000
$5,600,000
$5,500,000
$5,400,000
$5,300,000
$5,200,000
$5,100,000
12 MONTH NET OPERATING INCOME $5,000,000
$4,900,000
$4,800,000
$ 19,441,915 $4,700,000
$4,600,000
$ 7,351,143 $4,500,000
$ 17,830 $4,400,000
$4,300,000
$ 3,321,571 $4,200,000
$ 50,000 $4,100,000
$ 30,182,459 $4,000,000
$3,900,000
$3,800,000
$3,700,000
$3,600,000
2838 $3,500,000
$ 1,771,377 $3,400,000
$3,300,000
$ 5,092,948 $3,200,000
$3,100,000
$3,000,000
1 2
Average Inventory Value, at cost Maximum Inventory Value of Cost

$ 1,174,310 $ 2,519,140
$ 1,195,437 $ 2,519,140
$ 1,216,574 $ 2,519,140
$ 1,237,723 $ 2,519,140
$ 1,258,883 $ 2,519,140
$ 1,280,054 $ 2,519,140
$ 1,301,235 $ 2,519,140
$ 1,322,428 $ 2,519,140
$ 1,343,631 $ 2,519,140
$ 1,364,844 $ 2,519,140
$ 1,386,069 $ 2,519,140
FIGURE 8.8
Aug-97 Sep-97 Oct-97 Nov-97 Dec-97 All-1997
9% 7% 6% 5% 4% $ 32,000.00
2,880 2,240 1,920 1,600 1,280 $ 32,000.00
2880 2240 1920 1600 1280
$ 960 $ 960 $ 960 $ 960 $ 960
$ 2,764,800 $ 2,150,400 $ 1,843,200 $ 1,536,000 $ 1,228,800 $ 31,235,200
21 21 23 19 15 244
$ 2,582 $ 2,582 $ 2,828 $ 2,336 $ 1,844 30000

234.0327868852 0 0 0 0 1438
$ 2,816 $ 2,582 $ 2,828 $ 2,336 $ 1,844 31438
$ 152.25 $ 152.25 $ 152.25 $ 152.25 $ 152.25
$ 468 $ 469 $ 470 $ 472 $ 473
$ 393,105 $ 393,105 $ 430,543 $ 355,666 $ 280,789 $ 4,457,859
53447.237704918 0 0 0 0 $ 323,862
$ 446,552 $ 393,105 $ 430,543 $ 355,666 $ 280,789 $ 4,781,720
$ 1,318,200 $ 1,211,668 $ 1,330,383 $ 1,101,759 $ 871,984 $ 14,660,195
$ 1,764,751 $ 1,604,772 $ 1,760,926 $ 1,457,425 $ 1,152,773 $ 19,441,915
352 288 630 1538 2274

288 630 1538 2274 2838
320 459 1084 1906 2556
$ 223,303 $ 180,732 $ 391,924 $ 957,457 $ 1,417,487

$ 1,764,751 $ 1,604,772 $ 1,760,926 $ 1,457,425 $ 1,152,773
$ 1,988,054 $ 1,785,505 $ 2,152,850 $ 2,414,882 $ 2,570,260
627.54 622.13 622.60 623.37 624.13
$ 180,732 $ 391,924 $ 957,457 $ 1,417,487 $ 1,771,377
$ 202,018 $ 286,328 $ 674,691 $ 1,187,472 $ 1,594,432
$ 2,252,800 $ 1,843,200 $ 1,433,600 $ 1,228,800 $ 1,024,000

$ 921,600 $ 716,800 $ 614,400 $ 512,000 $ 409,600
$ 3,174,400 $ 2,560,000 $ 2,048,000 $ 1,740,800 $ 1,433,600 $ 30,048,000
$ 84,000 $ 84,000 $ 84,000 $ 84,000 $ 84,000 $ 980,000

84480 69120 53760 46080
38400 $ 750,160
110592 86016 73728 61440
49152 $ 1,205,248
$ 195,613 $ 195,613 $ 210,963 $ 180,263 $
149,563 $ 2,229,522
$ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 144,000
4040.3536001313 5726.5634085699 13493.812707962 23749.440498441 31888.636610718 $ 307,213
$ 85,000 $ 85,000 $ 100,000 $ 100,000 $ 100,000 $ 1,065,000
$ 120,000 $ 130,000 $ 470,000
$ 50,000 $ 200,000
$ 575,725 $ 657,475 $ 597,944 $ 507,532 $ 595,004 $ 7,351,143
$ 1,764,751 $ 1,604,772 $ 1,760,926 $ 1,457,425 $ 1,152,773 $ 19,441,915
$ 2,340,476 $ 2,262,248 $ 2,358,870 $ 1,964,958 $ 1,747,777 $ 26,793,058
$ 833,924 $ 297,752 $ (310,870) $ (224,158) $ (314,177) $ 3,254,942
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000

$ 2,962,668 $ 3,808,936 $ 4,122,559 $ 3,828,866 $ 3,620,662
$ 12,344 $ 15,871 $ 17,177 $ 15,954 $ 15,086 $ 89,459
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ (17,830)
$ 3,858,936 $ 4,172,559 $ 3,878,866 $ 3,670,662 $ 3,371,571
$ 3,808,936 $ 4,122,559 $ 3,828,866 $ 3,620,662 $ 3,321,571
$ - $ - $ - $ - $ -
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$6,000,000
$5,900,000
$5,800,000
$5,700,000
$5,600,000
$5,500,000
$5,400,000
$5,300,000
$5,200,000
$5,100,000
12 MONTH NET OPERATING INCOME
$5,000,000
$4,900,000
$4,800,000
$4,700,000
$4,600,000
$4,500,000
$4,400,000
$4,300,000
$4,200,000
$4,100,000
$4,000,000
$3,900,000
$3,800,000
$3,700,000
$3,600,000
$3,500,000
$3,400,000
$3,300,000
$3,200,000
$3,100,000
$3,000,000
1 2 3 4 5 6 7 8 9 10 11
SAFETY STOCK, PERCENT OF FORECAST DEMAND

11
FIGURE 8.7
Dec-96 Jan-97
SALES
Percent of annual 5%
Forecast demand, units 1,200 1,600
Backorders from preceding month, units -
Total Demand,units 1,600
Sales completed, units 1,200 1,600
Backorders to following months, units - -
Unit selling price $ 920.00 $ 920.00
Sales completed, dollars $ 1,104,000 $ 1,472,000
Workdays 19
Units produced on reguler time 2,336
Units produced on overtime -
Total units produced 2,336
Direct labor cost, $/unit increase in July 5% $ 145.00
Material cost, $/unit annual increase 3% $ 460
Direct labor cost, reguler time $ 338,730
Direct labor costm overtime $ -
Direct labor cost, total $ 338,730
Material cost, total $ 1,074,590
Total manufacturing cost $ 1,413,320
INVENTORY LEVEL
Start of month, units 3,400
End of month, units 3400 4,136
Average, units 3,768
Start of month $ 2,035,000
Added $ 1,413,320
Total before sales $ 3,448,320
Average unit cost of those sold 601.16
End of month (total after sales) $ 2,035,000 $ 2,486,456
Average value of inventory $ 2,260,728
Cash from sales last month 66.67% $ 736,000
Cash from sales this month 33.33% $ 490,667
Total sales receipts (cash inflow) $ 1,226,667
Salaries increase in August 5% $ 80,000
Advertising pct of preceding sales 2.5% $ 27,600
Commissions pct of sales 4% $ 58,880
Fringe benefits pct of wages and salaries 41% $ 171,679
Interest on long-term notes $ 12,000
Inventory holding cost pct of avg inventory 2% $ 45,215
Long-term leases $ 85,000
Income tax
Total miscellaneous expenses $ 530,374
Cost of manufacturing labor and materials $ 1,413,320
CASH OUTFLOW FROM OPERATIONS $ 1,943,693
NET CASH FLOW FROM OPERATIONS $ (717,027)
Opening cash balance $ 45,000
Return of previous invested principal $ -
Interest inflow from previous investing $ -
Payof of previous borrowed principal $ -
Interest outflow for previous borrowing $ -
Cash balance before new short-term investing or borrowing $ (672,027)
New short-term investing $ -
New short-term borrowing $ 702,027
Ending cash balance $ 45,000 $ 30,000
Cash balance policy

FIGURE 8.9
Inflows
Sales receipts $ 30,048,000
Total $ 30,191,312
Other Information for Comperison of Strategie

FIGURE 8.7
Feb-97 Mar-97 Apr-97 May-97
7% 9% 11% 14%
2,240 2,880 3,520 4,480
- - - -
2,240 2,880 3,520 4,480
2,240 2,880 3,520 4,480
- - - -
$ 920.00 $ 920.00 $ 920.00 $ 920.00
$ 2,060,800 $ 2,649,600 $ 3,238,400 $ 4,121,600
19 21 22 21
2,336 2,582 2,705 2,582

- - - -
2,336 2,582 2,705 2,582
$ 145.00 $ 145.00 $ 145.00 $ 145.00
$ 461 $ 462 $ 463 $ 465
$ 338,730 $ 374,385 $ 392,213 $ 374,385
$ - $ - $ - $ -
$ 338,730 $ 374,385 $ 392,213 $ 374,385
$ 1,077,277 $ 1,193,651 $ 1,253,618 $ 1,199,627
$ 1,416,006 $ 1,568,036 $ 1,645,831 $ 1,574,012
4,136 4,232 3,934 3,119

4,232 3,934 3,119 1,221
4,184 4,083 3,527 2,170
$ 2,486,456 $ 2,551,823 $ 2,378,588 $ 1,890,676

$ 1,416,006 $ 1,568,036 $ 1,645,831 $ 1,574,012
$ 3,902,462 $ 4,119,859 $ 4,024,418 $ 3,464,688
602.96 604.61 606.18 607.74
$ 2,551,823 $ 2,378,588 $ 1,890,676 $ 742,035
$ 2,519,140 $ 2,465,205 $ 2,134,632 $ 1,316,355
$ 981,333 $ 1,373,867 $ 1,766,400 $ 2,158,933

$ 686,933 $ 883,200 $ 1,079,467 $ 1,373,867
$ 1,668,267 $ 2,257,067 $ 2,845,867 $ 3,532,800
$ 80,000 $ 80,000 $ 80,000 $ 80,000

$ 36,800 $ 51,520 $ 66,240 $ 80,960
$ 82,432 $ 105,984 $ 129,536 $ 164,864
$ 171,679 $ 186,298 $ 193,607 $ 186,298
$ 12,000 $ 12,000 $ 12,000 $ 12,000
$ 50,383 $ 49,304 $ 42,693 $ 26,327
$ 85,000 $ 85,000 $ 85,000 $ 85,000
$ 100,000
$ 50,000
$ 518,294 $ 670,106 $ 659,076 $ 635,449
$ 1,416,006 $ 1,568,036 $ 1,645,831 $ 1,574,012
$ 1,934,300 $ 2,238,142 $ 2,304,907 $ 2,209,461
$ (266,033) $ 18,924 $ 540,960 $ 1,323,339
$ 30,000 $ 30,000 $ 30,000 $ 30,000

$ - $ - $ - $ -
$ - $ - $ - $ -
$ (702,027) $ (972,155) $ (958,902) $ (423,535)
$ (4,095) $ (5,671) $ (5,594) $ (2,471)
$ (942,155) $ (928,902) $ (393,535) $ 927,333
$ - $ - $ - $ 877,333
$ 972,155 $ 958,902 $ 423,535 $ -
$ 30,000 $ 30,000 $ 30,000 $ 50,000
FIGURE 8.9
SHLEY MANUFACTURING: Strategy #1
Outflows
Manufacturing labor and material $ 18,846,454
Other operating expenses $ 7,303,575
Interest paid on short-term borrowing $ 17,830
End of-year short-term investments $ 3,973,454
Total $ 30,191,312
r Information for Comperison of Strategies
End-of-Year Numbers
Inventory units 1,974
Inventory value at cost $ 1,232,736
Inventory + short-term investments $ 5,206,190
FIGURE 8.8
Jun-97 Jul-97 Aug-97 Sep-97 Oct-97 Nov-97
12% 11% 9% 7% 6% 5%
3,840 3,520 2,880 2,240 1,920 1,600
- 37 704 576 234 -
3,840 3,557 3,584 2,816 2,154 1,600
3,803 2,853 3,008 2,582 2,154 1,600
37 704 576 234 - -
$ 960.00 $ 960.00 $ 960.00 $ 960.00 $ 960.00 $ 960.00
$ 3,650,880 $ 2,738,880 $ 2,887,680 $ 2,478,720 $ 2,067,840 $ 1,536,000
21 22 21 21 23 19
2,582 2,705 2,582 2,582 2,828 2,336

- 148 426 - - -
2,582 2,853 3,008 2,582 2,828 2,336
$ 145.00 $ 152.25 $ 152.25 $ 152.25 $ 152.25 $ 152.25
$ 466 $ 467 $ 468 $ 469 $ 470 $ 472
$ 374,385 $ 411,824 $ 393,105 $ 393,105 $ 430,543 $ 355,666
$ - $ 33,829.45 $ 97,295.24 $ - $ - $ -
$ 374,385 $ 445,653 $ 490,400 $ 393,105 $ 430,543 $ 355,666
$ 1,202,626 $ 1,332,212 $ 1,408,077 $ 1,211,668 $ 1,330,383 $ 1,101,759
$ 1,577,011 $ 1,777,865 $ 1,898,477 $ 1,604,772 $ 1,760,926 $ 1,457,425
1,221 (0) - - (0) 674

(0) - - (0) 674 1,410
610 (0) - (0) 337 1,042
$ 742,035 $ (30) $ - $ - $ (20) $ 419,600

$ 1,577,011 $ 1,777,865 $ 1,898,477 $ 1,604,772 $ 1,760,926 $ 1,457,425
$ 2,319,045 $ 1,777,835 $ 1,898,477 $ 1,604,772 $ 1,760,905 $ 1,877,026
609.80 623.15 631.14 621.53 622.70 623.62
$ (30) $ - $ - $ (20) $ 419,600 $ 879,239
$ 371,002 $ (15) $ - $ (10) $ 209,790 $ 649,420
$ 2,747,733 $ 2,433,920 $ 1,825,920 $ 1,925,120 $ 1,652,480 $ 1,378,560

$ 1,216,960 $ 912,960 $ 962,560 $ 826,240 $ 689,280 $ 512,000
$ 3,964,693 $ 3,346,880 $ 2,788,480 $ 2,751,360 $ 2,341,760 $ 1,890,560
$ 80,000 $ 80,000 $ 84,000 $ 84,000 $ 84,000 $ 84,000

$ 103,040 $ 91,272 $ 68,472 $ 72,192 $ 61,968 $ 51,696
$ 146,035 $ 109,555 $ 115,507 $ 99,149 $ 82,714 $ 61,440
$ 186,298 $ 201,648 $ 195,613 $ 195,613 $ 210,963 $ 180,263
$ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000
$ 7,420 $ (0) $ - $ (0) $ 4,196 $ 12,988
$ 85,000 $ 85,000 $ 85,000 $ 85,000 $ 100,000 $ 100,000
$ 120,000 $ 120,000
$ 50,000 $ 50,000
$ 739,793 $ 629,475 $ 560,592 $ 667,953 $ 605,840 $ 502,387
$ 1,577,011 $ 1,777,865 $ 1,898,477 $ 1,604,772 $ 1,760,926 $ 1,457,425
$ 2,316,804 $ 2,407,340 $ 2,459,069 $ 2,272,726 $ 2,366,766 $ 1,959,813
$ 1,647,889 $ 939,540 $ 329,411 $ 478,634 $ (25,006) $ (69,253)
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000

$ 877,333 $ 2,528,878 $ 3,478,955 $ 3,822,862 $ 4,317,425 $ 4,310,409
$ 3,656 $ 10,537 $ 14,496 $ 15,929 $ 17,989 $ 17,960
$ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ -
$ 2,578,878 $ 3,528,955 $ 3,872,862 $ 4,367,425 $ 4,360,409 $ 4,309,116
$ 2,528,878 $ 3,478,955 $ 3,822,862 $ 4,317,425 $ 4,310,409 $ 4,259,116
$ - $ - $ - $ - $ - $ -
$ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
Dec-97 All 1997
4%
1,280 32,000
-
1,280
1,280 32,000
-
$ 960.00
$ 1,228,800 $ 30,131,200
15 244
1,844 30,000
- 574
1,844 30,574
$ 152.25
$ 473
$ 280,789 4,457,859
$ - 131,125
$ 280,789 $ 4,588,983
$ 871,984 $ 14,257,470
$ 1,152,773 $ 18,846,454
1,410
1,974
1,692
$ 879,239
$ 1,152,773
$ 2,032,012
624.43
$ 1,232,736
$ 1,055,987
$ 1,024,000 $ 20,004,267
$ 409,600 $ 10,043,733
$ 1,433,600 $ 30,048,000
$ 84,000 $ 980,000
$ 38,400 $ 750,160
$ 49,152 $ 1,205,248
$ 149,563 $ 2,229,522
$ 12,000 $ 144,000
$ 21,120 $ 259,645
$ 100,000 $ 1,065,000
$ 130,000 $ 470,000
$ 200,000
$ 584,235 $ 7,303,575
$ 1,152,773 $ 18,846,454
$ 1,737,009 $ 26,150,028
$ (303,409) $ 3,897,972
$ 50,000
$ 4,259,116
$ 17,746 $ 98,312
$ -
$ - $ (17,830)
$ 4,023,454
$ 3,973,454
$ -
$ 50,000
FIGURE 8.7
Dec-96 Jan-97 Feb-97 Mar-97

SALES
Percent of annual 5% 7% 9%
Forecast demand, units 1,200 1,600 2,240 2,880
Backorders from preceding month, units - - -
Total Demand,units 1,600 2,240 2,880
Sales completed, units 1,200 1,600 2,240 2,880
Backorders to following months, units - - - -
Unit selling price $ 920.00 $ 920.00 $ 920.00 $ 920.00
Sales completed, dollars $ 1,104,000 $ 1,472,000 $ 2,060,800 $ 2,649,600
Workdays 19 19 21
Units produced on reguler time 2,336 2,336 2,582
Units produced on overtime - - -
Total units produced 2,336 2,336 2,582
Direct labor cost, $/unit increase in July 5% $ 145.00 $ 145.00 $ 145.00
Material cost, $/unit annual increase 3% $ 460 $ 461 $ 462
Direct labor cost, reguler time $ 338,730 $ 338,730 $ 374,385
Direct labor costm overtime $ - $ - $ -
Direct labor cost, total $ 338,730 $ 338,730 $ 374,385
Material cost, total $ 1,074,590 $ 1,077,277 $ 1,193,651
Total manufacturing cost $ 1,413,320 $ 1,416,006 $ 1,568,036
INVENTORY LEVEL
Start of month, units 3,400 4,136 4,232
End of month, units 3400 4,136 4,232 3,934
Average, units 3,768 4,184 4,083
Start of month $ 2,035,000 $ 2,486,456 $ 2,551,823
Added $ 1,413,320 $ 1,416,006 $ 1,568,036
Total before sales $ 3,448,320 $ 3,902,462 $ 4,119,859
Average unit cost of those sold 601.16 602.96 604.61
End of month (total after sales) $ 2,035,000 $ 2,486,456 $ 2,551,823 $ 2,378,588
Average value of inventory $ 2,260,728 $ 2,519,140 $ 2,465,205
Cash from sales last month 66.67% $ 736,000 $ 981,333 $ 1,373,867
Cash from sales this month 33.33% $ 490,667 $ 686,933 $ 883,200
Total sales receipts (cash inflow) $ 1,226,667 $ 1,668,267 $ 2,257,067
Salaries increase in August 5% $ 80,000 $ 80,000 $ 80,000
Advertising pct of preceding sales 2.5% $ 27,600 $ 36,800 $ 51,520
Commissions pct of sales 4% $ 58,880 $ 82,432 $ 105,984
Fringe benefits pct of wages and salaries 41% $ 171,679 $ 171,679 $ 186,298
Interest on long-term notes $ 12,000 $ 12,000 $ 12,000
Inventory holding cost pct of avg inventory 2% $ 45,215 $ 50,383 $ 49,304
Long-term leases $ 85,000 $ 85,000 $ 85,000
Income tax $ 100,000
Total miscellaneous expenses $ 530,374 $ 518,294 $ 670,106
Cost of manufacturing labor and materials $ 1,413,320 $ 1,416,006 $ 1,568,036
CASH OUTFLOW FROM OPERATIONS $ 1,943,693 $ 1,934,300 $ 2,238,142
NET CASH FLOW FROM OPERATIONS $ (717,027) $ (266,033) $ 18,924
Opening cash balance $ 45,000 $ 30,000 $ 30,000
Return of previous invested principal $ - $ - $ -
Interest inflow from previous investing $ - $ - $ -
Payof of previous borrowed principal $ - $ (702,027) $ (972,155)
Interest outflow for previous borrowing $ - $ (4,095) $ (5,671)
Cash balance before new short-term investing or borrowing $ (672,027) $ (942,155) $ (928,902)
New short-term investing $ - $ - $ -
New short-term borrowing $ 702,027 $ 972,155 $ 958,902
Ending cash balance $ 45,000 $ 30,000 $ 30,000 $ 30,000
Cash balance policy

FIGURE 8.9
Inflows Outflows
Starting cash balance $ 45,000 Manufacturing labor and material
Sales receipts $ 30,048,000 Other operating expenses
Interest earned on short-term investing $ 98,312 Interest paid on short-term borrowing
Total $ 30,191,312 End of-year short-term investments
Ending cash balance
Total
Inventory holding cost for the year $ 259,645 End-of-Year Numbers
Net cash flow from operations for the year $ 3,897,972 Inventory units
SENSITIVITY TO BACKORDER POLICY, AS EXPRESSED BY THE MAXIMUM PERCENT OF FORECAST DEMAND PERMITTED ON BACK
Net Cash Flow Average Number Average Value of Inventory Holding Cost
Maximum Percent of forecast demand on Backorder From Operation of Units in Inventory for the Year
for Year Inventory
3,897,972 1,784 1,081,853 259,645
0% 1255997 $ 301,439
10% 1167797 $ 280,271
20% 1081853 $ 259,645
30% 1006855 $ 241,645
40% 940230 $ 225,655
50% 940230 $ 225,655
60% 940230 $ 225,655
70% 940230 $ 225,655
80% 940230 $ 225,655
90% 940230 $ 225,655
100% 940230 $ 225,655
FIGURE 8.8
Apr-97 May-97 Jun-97 Jul-97 Aug-97
11% 14% 12% 11% 9%

3,520 4,480 3,840 3,520 2,880
- - - 37 704
3,520 4,480 3,840 3,557 3,584
3,520 4,480 3,803 2,853 3,008
- - 37 704 576
$ 920.00 $ 920.00 $ 960.00 $ 960.00 $ 960.00
$ 3,238,400 $ 4,121,600 $ 3,650,880 $ 2,738,880 $ 2,887,680
22 21 21 22 21
2,705 2,582 2,582 2,705 2,582

- - - 148 426
2,705 2,582 2,582 2,853 3,008
$ 145.00 $ 145.00 $ 145.00 $ 152.25 $ 152.25
$ 463 $ 465 $ 466 $ 467 $ 468
$ 392,213 $ 374,385 $ 374,385 $ 411,824 $ 393,105
$ - $ - $ - $ 33,829.45 $ 97,295.24
$ 392,213 $ 374,385 $ 374,385 $ 445,653 $ 490,400
$ 1,253,618 $ 1,199,627 $ 1,202,626 $ 1,332,212 $ 1,408,077
$ 1,645,831 $ 1,574,012 $ 1,577,011 $ 1,777,865 $ 1,898,477
3,934 3,119 1,221 (0) -

3,119 1,221 (0) - -
3,527 2,170 610 (0) -
$ 2,378,588 $ 1,890,676 $ 742,035 $ (30) $ -

$ 1,645,831 $ 1,574,012 $ 1,577,011 $ 1,777,865 $ 1,898,477
$ 4,024,418 $ 3,464,688 $ 2,319,045 $ 1,777,835 $ 1,898,477
606.18 607.74 609.80 623.15 631.14
$ 1,890,676 $ 742,035 $ (30) $ - $ -
$ 2,134,632 $ 1,316,355 $ 371,002 $ (15) $ -
$ 1,766,400 $ 2,158,933 $ 2,747,733 $ 2,433,920 $ 1,825,920

$ 1,079,467 $ 1,373,867 $ 1,216,960 $ 912,960 $ 962,560
$ 2,845,867 $ 3,532,800 $ 3,964,693 $ 3,346,880 $ 2,788,480
$ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 84,000

$ 66,240 $ 80,960 $ 103,040 $ 91,272 $ 68,472
$ 129,536 $ 164,864 $ 146,035 $ 109,555 $ 115,507
$ 193,607 $ 186,298 $ 186,298 $ 201,648 $ 195,613
$ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 12,000
$ 42,693 $ 26,327 $ 7,420 $ (0) $ -
$ 85,000 $ 85,000 $ 85,000 $ 85,000 $ 85,000
$ 120,000
$ 50,000 $ 50,000
$ 659,076 $ 635,449 $ 739,793 $ 629,475 $ 560,592
$ 1,645,831 $ 1,574,012 $ 1,577,011 $ 1,777,865 $ 1,898,477
$ 2,304,907 $ 2,209,461 $ 2,316,804 $ 2,407,340 $ 2,459,069
$ 540,960 $ 1,323,339 $ 1,647,889 $ 939,540 $ 329,411
$ 30,000 $ 30,000 $ 50,000 $ 50,000 $ 50,000

$ - $ - $ 877,333 $ 2,528,878 $ 3,478,955
$ - $ - $ 3,656 $ 10,537 $ 14,496
$ (958,902) $ (423,535) $ - $ - $ -
$ (5,594) $ (2,471) $ - $ - $ -
$ (393,535) $ 927,333 $ 2,578,878 $ 3,528,955 $ 3,872,862

$ - $ 877,333 $ 2,528,878 $ 3,478,955 $ 3,822,862
$ 423,535 $ - $ - $ - $ -
$ 30,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000
$4,400,000
$4,300,000
$4,200,000

$4,100,000
Outflows
l $ 18,846,454 $4,000,000
$ 7,303,575
wing $ 17,830 $3,900,000
nts $ 3,973,454
$ 50,000 $3,800,000
otal $ 30,191,312
$3,700,000
1,974 $3,600,000
$ 1,232,736
nts $ 5,206,190 $3,500,000
AND PERMITTED ON BACKORDER $3,400,000

1 2 3 4 5 6 7 8 9
Number of Units Labor Cost Working overtime MAXIMUM PERCENT OF FORECAST DEMAND ON BACKORDER
Produced on Overtime during the year
during the Year
574 131,125
1150 $ 262,266
862 $ 196,897
574 $ 131,125
286 $ 65,353
0 $ -
0 $ -
0 $ -
0 $ -
0 $ -
0 $ -
0 $ -
FIGURE 8.8
Sep-97 Oct-97 Nov-97 Dec-97 All 1997
7% 6% 5% 4%
2,240 1,920 1,600 1,280 32,000
576 234 - -
2,816 2,154 1,600 1,280
2,582 2,154 1,600 1,280 32,000
234 - - -
$ 960.00 $ 960.00 $ 960.00 $ 960.00
$ 2,478,720 $ 2,067,840 $ 1,536,000 $ 1,228,800 $ 30,131,200
21 23 19 15 244
2,582 2,828 2,336 1,844 30,000

- - - - 574
2,582 2,828 2,336 1,844 30,574
$ 152.25 $ 152.25 $ 152.25 $ 152.25
$ 469 $ 470 $ 472 $ 473
$ 393,105 $ 430,543 $ 355,666 $ 280,789 4,457,859
$ - $ - $ - $ - 131,125
$ 393,105 $ 430,543 $ 355,666 $ 280,789 $ 4,588,983
$ 1,211,668 $ 1,330,383 $ 1,101,759 $ 871,984 $ 14,257,470
$ 1,604,772 $ 1,760,926 $ 1,457,425 $ 1,152,773 $ 18,846,454
- (0) 674 1,410

(0) 674 1,410 1,974
(0) 337 1,042 1,692
$ - $ (20) $ 419,600 $ 879,239

$ 1,604,772 $ 1,760,926 $ 1,457,425 $ 1,152,773
$ 1,604,772 $ 1,760,905 $ 1,877,026 $ 2,032,012
621.53 622.70 623.62 624.43
$ (20) $ 419,600 $ 879,239 $ 1,232,736
$ (10) $ 209,790 $ 649,420 $ 1,055,987
$ 1,925,120 $ 1,652,480 $ 1,378,560 $ 1,024,000 $ 20,004,267

$ 826,240 $ 689,280 $ 512,000 $ 409,600 $ 10,043,733
$ 2,751,360 $ 2,341,760 $ 1,890,560 $ 1,433,600 $ 30,048,000
$ 84,000 $ 84,000 $ 84,000 $ 84,000 $ 980,000

$ 72,192 $ 61,968 $ 51,696 $ 38,400 $ 750,160
$ 99,149 $ 82,714 $ 61,440 $ 49,152 $ 1,205,248
$ 195,613 $ 210,963 $ 180,263 $ 149,563 $ 2,229,522
$ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 144,000
$ (0) $ 4,196 $ 12,988 $ 21,120 $ 259,645
$ 85,000 $ 100,000 $ 100,000 $ 100,000 $ 1,065,000
$ 120,000 $ 130,000 $ 470,000
$ 50,000 $ 200,000
$ 667,953 $ 605,840 $ 502,387 $ 584,235 $ 7,303,575
$ 1,604,772 $ 1,760,926 $ 1,457,425 $ 1,152,773 $ 18,846,454
$ 2,272,726 $ 2,366,766 $ 1,959,813 $ 1,737,009 $ 26,150,028
$ 478,634 $ (25,006) $ (69,253) $ (303,409) $ 3,897,972
$ 50,000 $ 50,000 $ 50,000 $ 50,000

$ 3,822,862 $ 4,317,425 $ 4,310,409 $ 4,259,116
$ 15,929 $ 17,989 $ 17,960 $ 17,746 $ 98,312
$ - $ - $ - $ -
$ - $ - $ - $ - $ (17,830)
$ 4,367,425 $ 4,360,409 $ 4,309,116 $ 4,023,454

$ 4,317,425 $ 4,310,409 $ 4,259,116 $ 3,973,454
$ - $ - $ - $ -
$ 50,000 $ 50,000 $ 50,000 $ 50,000
6 7 8 9 10 11
AST DEMAND ON BACKORDER

Isfi Nuraida - Anggaran Kas

Caricato da

Informazioni sul documento

Descrizione originale:

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Isfi Nuraida - Anggaran Kas

Caricato da

Copyright:

Formati disponibili

FIGURE 8-1

Example 8.1: GLORIANA STORES

$ 600,000 $ 800,000 $ 500,000

Example 8.2: GLORIANA STORES

Payments for Purchase Goods Pct. Rec'd

Sales (Actuals and Forecast) $ 600,000 $ 950,000 $ 300,000

Reconcilliation of Cash Flow for January 1 to June 30

$ 450,000 $ 550,000 $ 600,000 $ 625,000 $ 600,000

$ 90,000 $ 110,000 $ 120,000 $ 125,000 $ 120,000

ple 8.2: GLORIANA STORES

$ 315,000 $ 385,000 $ 420,000 $ 437,500 $ 420,000

$ 31,500 $ 38,500 $ 42,000 $ 43,750 $ 42,000

YSTONE DEPARTMENT SOTRE: Part a

$ 375,000 $ 450,000 $ 600,000 $ 550,000 $ 600,000 $ 2,875,000

$ 75,000 $ 90,000 $ 120,000 $ 110,000 $ 120,000 $ 575,000

$ 262,500 $ 315,000 $ 420,000 $ 385,000 $ 420,000 $ 2,012,500

$ 26,250 $ 31,500 $ 42,000 $ 38,500 $ 42,000 $ 201,250

$ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 360,000

$ 15,000 $ 30,000 $ 60,000 $ 50,000 $ 60,000 $ 215,000

$ 510,000 $ 367,500 $ 457,500 $ 545,000 $ 575,000 $ 3,170,000

$ 12,885 $ 15,870 $ (5,880) $ 31,981 $ 47,981

Sales (Actuals for Forecast) $ 600,000 $ 950,000 $ 300,000

Unjusted Cash Balance Before New Borrowing or Investing $ 67,817

$ 375,000 $ 450,000 $ 600,000 $ 550,000 $ 600,000 $ 2,875,000

$ 37,500 $ 45,000 $ 60,000 $ 55,000 $ 60,000 $ 287,500

Rp 262,500 Rp 315,000 Rp 420,000 Rp 385,000 Rp 420,000 Rp 2,012,500

$ 26,250.00 $ 31,500.00 $ 42,000.00 $ 38,500.00 $ 42,000.00 $ 201,250.00

$ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 360,000

$ 15,000 $ 30,000 $ 60,000 $ 50,000 $ 60,000 $ 215,000

$ 437,500 $ 367,500 $ 450,000 $ 565,000 $ 565,000 $ 3,200,000

$ 27,816.67 $ 73,955.75 $ 58,950.53 $ 11,620.28 $ 32,928.38 $ 205,272

$ 113,956 $ 98,951 $ 51,620 $ 72,928 $ 91,343

$ 73,956 $ 58,951 $ 11,620 $ 32,928 $ 51,343

Cash balance policy

Other Information for Comperison of S

3,400 4,292 4,544 4,418

$ 2,035,000 $ 2,580,515 $ 2,740,067 $ 2,671,215

736,000 981,333 1,373,867 1,766,400

80,000 80,000 80,000 80,000

$ (776,447) $ (1,153,667) $ (1,261,225) $ (855,190)

14% 12% 11% 9%

3,783 2,057 971 336

$ 2,293,079 $ 1,249,899 $ 591,844 $ 207,465

2,158,933 2,747,733 2,457,600 2,252,800

80,000 80,000 80,000 84000

$ 338,716 $ 1,871,862 $ 3,001,703 $ 3,894,059

Sep-97 Oct-97 Nov-97 Dec-97

210 725 1,821 2,713

$ 130,498 $ 450,275 $ 1,133,481 $ 1,690,822

1,843,200 1,433,600 1,228,800 1,024,000

84000 84000 84000 84000

$ 4,090,017 $ 3,664,473 $ 3,343,999 $ 2,952,784

Cash balance policy

Other Information for Comperison of S

3,400 4,292 4,544 4,418

$ 2,035,000 $ 2,580,515 $ 2,740,067 $ 2,671,215

736,000 981,333 1,373,867 1,766,400

80,000 80,000 80,000 80,000

$ (776,447) $ (1,153,667) $ (1,261,225) $ (855,190)

14% 12% 11% 9%

3,783 2,057 971 336

$ 2,293,079 $ 1,249,899 $ 591,844 $ 207,465