Elis Printing Case

International Accounting Prof. William Hancock

Ellis printing Case
Ellis printing Case

1. Prepare Ellis printing Company’s cash budget for the 1st half of 2007

| | | Jan-07 | Feb-07 | Mar-07 | Apr-07 | May-07 | Jun-07 | I. Cash Input | | | | | | | | | Receipt, 1% discount, Month (1st -20th ) | 6,600 | 9,240 | 11,220 | 13,200 | 9,240 | 6,600 | | Receipt, 1% discount, Month+1 (21st - 30th ) | 2,640 | 3,300 | 4,620 | 5,610 | 6,600 | 4,620 | | Receipt, Month+30days | 28,000 | 35,000 | 49,000 | 59,500 | 70,000 | 49,000 | | | Receipt, Month+60days | 2,500 | 4,000 | 5,000 | 7,000 | 8,500 | 10,000 | | | Total Cash Input | | 39,740 | 51,540 | 69,840 | 85,310 | 94,340 | 70,220 | | | | | | | | | | | | II. Cash Output | | | | | | | | | material(10% of M+2 sales) | 8,500 | 10,000 | 7,000 | 5,000 | 2,500 | 2,000 | | | material(10% of M+1 sales) | 7,000 | 8,500 | 10,000 | 7,000 | 5,000 | 2,500 | | | labor(20% of M+2 sales) | 17,000 | 20,000 | 14,000 | 10,000 | 5,000 | 4,000 | | | labor(20% of M+1 sales) | 14,000 | 17,000 | 20,000 | 14,000 | 10,000 | 5,000 | | | G&A expenses | | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 | | | Lease fee | | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | | | Miscellaneous expense | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | 2,500 | | | Interest expense paid | 5,000 | | | | | | | | Purchasing a machine | | | | | | 50,000 | | | Tax | | | | | 75,000 | | 75,000 | | | Total Cash Output | 65,000 | 69,000 | 64,500 | 124,500 | 36,000 | 152,000 | | | | | | | | | | | | III. Net increase ( I - II ) | -25,260 | -17,460 | 5,340 | -39,190 | 58,340 | -81,780 | | | | | | | | | | IV. Beginning Cash | | | 30,000 | 4,740 | -12,720 | -7,380 | -46,570 | 11,770 | V. Ending Cash ( III + IV ) | 4,740 | -12,720 | -7,380 | -46,570 | 11,770 | -70,010 |