1 PHOTOTEC, INC.

Schedule of Cash Receipts

Cash Sales June $250,000
Collections on Accounts Receivable
May 31st balance 72,000
June 155,000
Total Cash Receipts $227,000

Schedule of Cash Payments for purchases
May 31 Accounts Payable Balance $90,000
June Purchases 80,000
Total Cash Payments $170,000


PHOTOTEC, INC.
June Cash Budget

Cash balance, beginning $107,000
Add receipts from customers $72,000
Total Cash Available $179,000
Less Disbursements:
Purchase of Inventory 80000
Operating Expenses 49000
Purchase of Equipment 9000
Total Cash Disbursement 138,000
Excess of receipts over disbursement 41000
Financing:
Borrowing Note 18,000
Repayment Note 15,000
Interest 500
Total Financing 33,500
Cash balance, ending $7,500


2 PHOTOTEC, INC.
June Income Statement
Sales $250,000
Cost of Goods Sold:
Beginning Inventory 30000
Add Purchases 200000
Goods available for sale 230000
Ending Inventory 40000
Cost of good sold 190000
Gross Margin 60000
Selling & Administrative expenses 53000
Net operating income 7000
Interest expense 500
Net Income $6,500


3 PHOTOTEC, INC.
Balance Sheet June 30


Assets
Cash $7,500
Accounts receivable 95,000
Inventory 40,000
Buildings and equipment, net of depreciation 507,000
Total assets $649,500

Liabilities and Stockholders' Equity
Accounts payable $120,000
Note payable 18,000
Capital stock, no par 420,000
Retained earnings 91,500
Total liabilities and stockholders' equity $649,500

Required:
1. Budget of anticipated sales.

2. Statement of production required.

3. Statement of raw materials purchase requirements.
Answer:
Dianne Arra Bagon
Glaiza Fanoga
Budget of anticipated sales.

Nikko Manufacturing Company
Sales Budget
For the year ending December 31, 2005

Units Amount
First quarter 16,000 P 480,000
Second quarter 20,000 600,000
Third quarter 22,000 660,000
Fourth quarter 22,000 660,000

Total 80,000 P 2,400,000


Statement of production required

Nikko Manufacturing Company
Statement of Production Required
For 2005

Q u a r t e r
1st 2nd 3rd 4th Total
Units to be sold 16,000 20,000 22,000 22,000 80,000
Add: Desired ending inventory (20%) 4,000 4,400 4,400 5,000 5,000
Total units required 20,000 24,400 26,400 27,000 85,000
Less: Beginning inventory 3,000 4,000 4,400 4,400 3,000

Units to be produced 17,000 20,400 22,000 22,600 82,000


Statement of raw materials purchase requirements
Nikko Manufacturing Company
Statement of Raw Materials Purchase Requirements
For 2005

Q u a r t e r
1st 2nd 3rd 4th Total
Units required for production 51,000 61,200 66,000 67,800 246,000
Add: Desired ending inventory 12,240 13,200 13,560 15,000 15,000
Total units 63,240 74,400 79,560 82,800 261,000
Less: Beginning inventory 12,500 12,240 13,200 13,560 12,500

Raw Materials to be Purchased 50,740 62,160 66,360 69,240 248,500

Problem 4: Sales, Production and Materials Purchases Budget
The following information is made available to you by the management of Nikko Manufacturing
Company for the year 2005:

Sales Forecast: 80,000 units of its only product at P30 per unit.

The seasonal variations index based on prior years operation is as follows:

1st quarter 80 3rd quarter 110
2nd quarter 100 4th quarter 110