CMA PROGRAM

CASE STUDY IN MASTER BUDGETING - BLADES PTY LTD

INCOME STATEMENT
Q1 Q2
JAN FEB MAR APR MAY
Sales 158,000 160,000 164,000 172,000 176,000
Cost of Sales (118,500) (120,000) (123,000) (129,000) (132,000)
Gross Margin 39,500 40,000 41,000 43,000 44,000
Opex
Salaries and Wages (10,000) (10,000) (10,000) (10,000) (10,000)
Adv and Prom (1,000) (1,000) (1,000) (1,000) (1,000)
Rent and Rates (1,500) (1,500) (1,500) (1,500) (1,500)
Insurance (400) (400) (400) (400) (400)
Utilities (500) (500) (500) (500) (500)
Depretiation (1,500) (1,500) (1,500) (1,500) (1,500)
Interest (756) (1,589) (1,589) (146) (192)
Total Opex (15,656) (16,489) (16,489) (15,046) (15,092)
EBT 23,845 23,511 24,511 27,954 28,908
Corporate Tax 9,538 9,404 9,804 11,182 11,563
EAT 14,307 14,107 14,707 16,772 17,345

CASH FLOW
Q1 Q2
JAN FEB MAR APR MAY
Beginning Balance 20,000 20,000 20,000 20,000 20,000
Cash In
Sales Collection - I (30%) 0 47,400 48,000 49,200 51,600
Sales Collection - II (70%) 0 0 110,600 112,000 114,800

Total Cash In 0 47,400 158,600 161,200 166,400

Cash Out
Cost of Sales - I (59,250) (60,000) (61,500) (64,500) (66,000)
Cost of Sales - II (59,250) (60,000) (61,500) (64,500)
Salaries and Wages (10,000) (10,000) (10,000) (10,000) (10,000)
Adv and Prom (1,000) (1,000) (1,000) (1,000) (1,000)
Rent and Rates 0 0 (4,500) 0 0
Insurance (4,800) 0 0 0 0
Utilities (500) (500) (500) (500) (500)
Tax Payment 0 0 0 (16,000) 0
Interest 0 0 (3,934) 0 0
Total Cash Out (75,550) (130,750) (141,434) (153,500) (142,000)
Investment In
Loan 75,550 83,350 0 14,600 4,600
Total Investment In 75,550 83,350 0 14,600 4,600
Investment Out
Equipment Purchase 0 0 0 (22,300) (29,000)
Deposito/Time Deposit 0 0 0 0 0
Loan 0 0 (17,167) 0 0
Total Investment Out 0 0 (17,167) (22,300) (29,000)
End Balance 20,000 20,000 20,000 20,000 20,000
Q2 Q3 Q4
JUN JUL AUG SEP OCT NOV DEC
184,000 190,000 192,000 210,000 230,000 260,000 180,000
(138,000) (142,500) (144,000) (157,500) (172,500) (195,000) (135,000)
46,000 47,500 48,000 52,500 57,500 65,000 45,000

(10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000)

(1,000) (1,000) (1,000) (1,000) (1,000) (1,000) (1,000)
(1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500)
(400) (400) (400) (400) (400) (400) (400)
(500) (500) (500) (500) (500) (500) (500)
(1,500) (1,500) (1,500) (1,500) (1,500) (1,500) (1,500)
(192) 0 0 0 0 0 0
(15,092) (14,900) (14,900) (14,900) (14,900) (14,900) (14,900)
30,908 32,600 33,100 37,600 42,600 50,100 30,100
12,363 13,040 13,240 15,040 17,040 20,040 12,040
18,545 19,560 19,860 22,560 25,560 30,060 18,060

Q2 Q3 Q4
JUN JUL AUG SEP OCT NOV DEC
20,000 20,000 20,000 20,000 20,000 20,000 20,000

52,800 55,200 57,000 57,600 63,000 69,000 78,000

120,400 123,200 128,800 133,000 134,400 147,000 161,000

173,200 178,400 185,800 190,600 197,400 216,000 239,000

(69,000) (71,250) (72,000) (78,750) (86,250) (97,500) (67,500)

(66,000) (69,000) (71,250) (72,000) (78,750) (86,250) (97,500)
(10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000)
(1,000) (1,000) (1,000) (1,000) (1,000) (1,000) (1,000)
(4,500) 0 0 (4,500) 0 0 (4,500)
0 0 0 0 0 0 0
(500) (500) (500) (500) (500) (500) (500)
0 0 0 0 0 0 0
(530) 0 0 0 0 0 0
(151,530) (151,750) (154,750) (166,750) (176,500) (195,250) (181,000)

0 0 0 0 0 0 0
0 0 0 0 0 0 0
 0 0 0 0 0 0 0
(2,470) (26,650) (31,050) (23,850) (20,900) (20,750) (58,000)
(19,200) 0 0 0 0 0 0
(21,670) (26,650) (31,050) (23,850) (20,900) (20,750) (58,000)
20,000 20,000 20,000 20,000 20,000 20,000 20,000
 Equipment Investment
TOTAL
2,276,000
(1,707,000)
569,000 Interest

(120,000)
(12,000)
(18,000)
(4,800)
(6,000)
(18,000)
(4,464)
(183,264)
385,737

231,442

TOTAL

628,800
1,285,200

1,914,000

(853,500)
(786,000)
(120,000)
(12,000)
(18,000)
(4,800)
(6,000)
(16,000)
(4,464)
(1,820,764)

178,100
178,100
 (51,300)
(183,670)
(36,367)
(271,337)