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Case ThreeCHEF’S TOOLKIT INC.
Cash Budgeting企业现金需求分析和预算
Case Explanation: cash budgeting
History: Jefferys, invention of Pasta server Production: data Marketing: data Financial Implication: data Data: Composition of Canadian Households;
Balance sheet(July 15, 1994)Jefferys Personal balance sheet (July 15, 1994)Production Schedule in Unit
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Study Questions
Q1:What is the Case? (1)event?(2)Companies?(3)Persons?(4)Time? What is the problem?(5)Why is the problem?(6)Possible Solutions?
Q2:Analyses (1) Background of Chef’s Toolkit Inc.? (2) CV of managers? (3)What is the invention? (4)Company Size-up: production, marketing, and financial status?
Q3:Budgeting(monthly sales : 10,000; 5,000; 30,000): production schedule, cash budget, Pro-forma income statement, Pro-forma balance sheet
Q4:How can the firm avoid loss? Break –even calculation?
Q5: How much money do the firm need for financing? Should Dale Raid invest? What are his risks?
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Case Summary(案例)
Mr. Dale Reid
Private InvestorMr. Peter Jeffery
President of
Chef’s Toolkit Inc.
Obtain funds to start manufacturing and marketing a new pasta server.
风险投资家
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Case Summary(案例)
Produce Sell
Pasta ServerChef’s Toolkit Inc. Chef or Housewife
意大利通心粉
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Objectives(目标)
Produce projected incomestatements, balance sheets,and cash flow statement upto July 31, 1995.
Obtain fund from Dale Reid.预计财务报告
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Why Budget?If you know where you are going, you’re more likely to get there….
Plan Perform Evaluate Report
预算
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Preparation of the Budget for a Manufacturing Organization
销售预算
生产预算
成本和费用预算
现金预算
预计的财务报告
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Preparation of the Cash Budget for Chef’s Toolkit Inc.
Production Schedule
Cash Budget
Pro-forma income statement Pro-forma balance sheet
生产计划
现金预算
预计的利润表 预计的资产负债表
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Analyses(分析)
Background of Chef’s Toolkit Inc. (背景) CVs of Peter and Sally Jeffery (简历) Invention: Pasta Server (发明) Production(生产) Marketing(销售) Financial Status(财务状况) Budgeting(预算)
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Financial Status(财务状况)
Dale Reid: invest $85,000 for 50 percent of ownership.(出资)
Jefferys: can not invest any more personal funds.
Monthly Sales(月销售预计): 10,000 unit, 5,000 unit, 30,000 units.
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Budgeting(预算)
Prepare a monthly production schedule Prepare a monthly cash budget Prepare income statement Prepare balance sheets Fiscal year-end: July 31, 1995
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Monthly production schedule(生产计划)
Beginning Inventory Total+Production-Sales-PromotionEnd Inventory Total-HomeWarehouse
期初存货
期末存货
生产
销售
促销
家中存货
仓库存货
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Direct Material Budget(成本预算)
Units x Direct Materials cost(产量x生产成本)
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The Cash Budget(现金预算)
The Cash Budget is a projection of the cash an organization will receive and the cash it will pay out.(现金流入-现金流出)
Shall we consider the depreciation?(折旧)
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Cash BudgetsCash Receipts-Cash DisbursementsChange in Cash+Beginning CashNet Cash FlowRequired Financing: Beginning- Net Cash FlowFinancing Shortfall
现金流入
现金流出
现金变动
期初现金
融资需求
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Reports on profitability of business
Revenues minus Expenses
Net income
equals
If expenses > revenue = net
loss
收入费用
净利润 亏损
Pro-forma income statement(预计利润表)
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Reports the entity’s assets, liabilities, and owner’s equity as of a specific date
Balance Sheet
Equity
LiabilitiesAssets资产
负债
所有者权益
Pro-forma balance sheet(预计资产负债表)
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Do it using Excel Monthly Sales: 5,000 unit Monthly Sales: 30,000 unitsa larger production mold.
- Capital cost: $62,000, payable in three monthly installments.;
- Double production capacity;- $0.35 per unit costs- Depreciation: $0.062 per unit- Inventory: $0.848 per unit How can the firm avoid loss?
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Break-even Calculations (盈亏平衡点)
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What Happened (结果)
The Jeffery received $75,000 in financing from Dale Reid.(出资)
Product Sales in the first two years were below the 10,000 unit level.
The firm filed for bankruptcy.(破产)