Eskimo Pie Case

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Mazen Saeed AlGhamdi200736930
The company have also poorly forecasted sales from January to August ($11.9) with actual sales amounting to $8.7m. The company wants to borrow more money because it wants to buy new machinery at a cost of $350k and this is due to no machinery being replaced because of the economic downturn. The company purchased $420k worth of raw materials, which it will use by the end of the year. There was a substantial backlog of orders amounting to $16.5m on 31st August. There was a missing piece of electronic equipment to finish some machines valued at $1,320,000, which was due to arrive and then the orders can be finished. The company needs to stay cash positive on a daily basis in order to finance its operations and business expansion. Based on the information in the case, prepare a projected cash budget for the four months September through December 1979, a projected income statement for the same period, and a pro forma balance sheet as of December 31, 1979. See attached excel spreadsheet below.

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| | | | | | | |
Pro Forma Statements| | | | | | | |
(thousands of dollars)| | | | | | | |
| | | | Pro Forma|
 | June| July| Aug.| Sept.| Oct.| Nov.| Dec.|
Net sales| $1,620| $723| $507| $2,163| $1,505| $1,604| $2,265| Purchases| | | | $600| $600| $600| $600|
WIP inventory reduction| | | | $1,320| $0| $0| $0| Raw materials reduction| | | | $105| $105| $105| $105| Cost of goods sold| | | | $2,025| $705| $705| $705| Depreciation| | | | $10| $10| $14| $14|

Other expenses| | | | $400| $400| $400| $400|
Cost of sales and other expenses| $1,327| $597| $342| $2,435| $1,115| $1,119| $1,119| EBIT| $293| $126| $165| -$272| $390| $486| $1,147|
Interest expense| $15| $15| $15| $15| $15| $20| $20| Net income before taxes| $278| $111| $150| -$287| $375| $466| $1,127|...
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