What eats sage brush?

Answer 1

SGN Company PLCSHN PLC is a production company, which produces and sales 5 different products, Sales forecast (pcs) and estimated sales prices are presented below. Please, work out Annual Budget (Income Statement and Cash Flow forecast)

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JanFebMarAprMayJunJulyAugSeptOctNovDecSales forecastProduct 1808080801001251852101401209080Product 2202020252535454535302520Product 3807580901001251852301451209080Product 4101010151520454030101010Product 57070708590110120150130807060Product 69095807060504030201500Price forecast per unitProduct 1$39.70$39.70$39.70$39.70$39.70$39.70$39.70$39.70$39.70$39.70$39.70$39.70Product 2$4.30$4.30$4.30$4.30$4.30$4.30$4.30$4.30$4.30$4.30$4.30$4.30Product 3$4.60$4.60$4.60$4.60$4.60$4.60$4.60$4.60$4.60$4.60$4.60$4.60Product 4$2.60$2.60$2.60$2.60$2.60$2.60$2.60$2.60$2.60$2.60$2.60$2.60Product 5$3.60$3.60$3.60$3.60$3.60$3.60$3.60$3.60$3.60$3.60$3.60$3.60Product 6$10.00$10.00$10.00$10.00$10.00$8.00$8.00$7.00$7.00$3.00$0.00$0.00To meet sales forecase Company should have 30% of estimated monthly sales in the stock at the end of previous month. Opening stock is 50 for each product except Product 6Opening stock of Product 6Stock is 550 units. Historic total unit cost of Product 6 is $15 per unit. Shelf life of Product 6 is 12 month.

Product 6 is re-cycleable in own production with recoverable value of $5 per unit Sales are recognised at the moment of dispatch. Previous experience shows, that 50% of AR will be colected during next month after shipment, other 40 % - within

two month and remaining 10% will not be collected at all. There were no opening AR.Direct unit costs are below. All expenses payable next month after production.WagesRaw materialsServices of third partiesProduct 1$5.00$7.00$3.00Product 2$1.00$1.50$0.00Product 3$2.00$1.00$0.50Product 4$0.30$0.70$0.00Product 5$1.00$1.00$0.30Product 6 (for newly produced)$30.00$7.00$2.00Other company expenses are presented belowOther company expenses paid at the same month as incurredSelling expenses 300300300320320320350350330300300300G&A expenses 150150150150150150150150150150150150Depreciation707070757575758080808080Please, provide monthly Income Statement and Cash-Flow forecast