Directions Your goal is to complete the following for your first year of operations: A 12-month cash budget A forecasted

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Directions
Your goal is to complete the following for your first year of
operations:
A 12-month cash budget A forecasted income statement for your
first year A forecasted balance sheet as of the end of your first
year
As you prepare your cash budget, forecasted income statement,
and forecasted balance sheet, make the following assumptions
regarding your first year of business: You will begin your cookie
company on January 1 You will begin your cookie company with a
$2,000 loan. Assume this is your starting cash balance. Assume an
interest rate of 1% per month on this loan. Assume you need to pay
cash interest each month on the loan balance outstanding as of the
beginning of the monthAssume once your company has a “Preliminary
Cash Balance” of $4,000 or more for a particular month, it will pay
off the $2,000 loan balance in full that month
You will have initial start-up costs
that you will pay for at the beginning of January. These are 1-time
costs that include the following: Commercial Oven = $1,000 Laptop =
$300 Implements (pans, bowls, mixers, etc.) = $200
Assume you forecast to sell 100
cookies in January and you forecast to sell 25 more cookies than
the previous month throughout your first year. (Example: 125
cookies in February, 150 cookies in March, 175 cookies in April,
etc.)
Assume your maximum capacity for
making cookies each month is 300. Therefore, that is the most you
can make and sell in a month. Keep this in mind for your sales
forecasts in the later months of the year.

Directions Your Goal Is To Complete The Following For Your First Year Of Operations A 12 Month Cash Budget A Forecasted 1 (53.48 KiB) Viewed 27 times

A31 A B G K L N JAN $2,000 с FEB $2,000 D MAR $4,400 E APR $7,300 F F MAY $10,700 JUN $14,600 H JUL $19,000 | AUG $23,900 J SEP $29,300 OCT $35,200 NOV $41,200 M DEC $47,200 2,000 2,400 4,400 2,900 7,300 3,400 10,700 3,900 14,600 4,400 19,000 4,900 23,900 5,400 29,300 5,900 35,200 6,000 41,200 6,000 47,200 6,000 53,200 2,000 1 2 Beginning Cash Balance 3 Less: Initial Start-Up Costs 4 Cash Balance After Start-Up Costs 5 Add: Cash Receipts from Customers 6 Total Cash Available 7 Less: Cash Payments 8 Direct Materials 9 Direct Labor 10 Kitchen Rent Interest on Bank Loan (1% of beg. of month 11 bal.) 12 Advertising 13 Internet 14 Total Cash Payments 15 Preliminary Cash Balance 16 Loan Activity 17 Additional Loan From Bank 18 Repayment of Loan From Bank 19 Ending Cash Balance 20 Loan Balance at Month End 21 22 0 0 0 0 0 0 2,000 0 4,400 0 7,300 0 19,000 0 23,900 0 29,300 0 35,200 0 0 47,200 10,700 14,600 41,200 53,200 $7,300 $2,000 $2,000 $4,400 $2,000 $10,700 $14,600 $19,000 $2,000 $2,000 $2,000 $23,900 $29,300 $35,200 $2,000 $2,000 $2,000 $41,200 $47,200 $53,200 $2,000 $2,000 $2,000 $2,000

COOKIE COMPANY Forecasted Balance Sheet As of December 31, 20XX ASSETS Cash Accounts Receivable Total Current Assets $ Fixed Assets Equipment Less: Depreciation Total Fixed Assets Total Assets 600 $ $ $ (600) (600) LIABILITIES Accounts Payable Total Liabilities $ Equity Owner's Capital $ Total Liabilities & Equity $

COOKIE COMPANY Forecasted Income Statement As of December 31, 20XX Sales Cost of Goods Sold Gross Profit $ Operating Expenses Interest Expense | Advertising Expense Internet Expense Total Operating Expenses $ $ $ $ Net Income $