Case 11-1 2004

Medieval AdventureCompany Monthly Production October ? November 500 750 $27,500.00 $26,250.00 ### $0.00 December 750 1000 $41,250.00 $35,000.00 ### $5,000.00 January 1000 1500 $55,000.00 $52,500.00 ### $10,000.00 $27,500.00 ### February 1500 2000 $82,500.00 $70,000.00 ### $20,000.00 $41,250.00 ### March 2000 2500 ### $87,500.00 ### $30,000.00 $55,000.00 ### April 2500 3000 ### $105,000.00 ### $40,000.00 $82,500.00 ### May 3000 3500 ### $122,500.00 ### $50,000.00 ### ### June 3500 4000 ### $140,000.00 ### $60,000.00 ### ### July 4000 4500 ### $157,500.00 ### $70,000.00 ### -$2,500.00 August 4500 5000 ### $175,000.00 ### $80,000.00 ### $7,500.00 September 5000 5500 ### $192,500.00 ### $90,000.00 ### $17,500.00 October 5500 6000 ### $210,000.00 ### $99,999.00 ### $27,499.00 What We Know: Unit CostTo Produc 35 Unit SellPrice 55 Monthly Fixed Costs $10,000.00 Opening Capital (cash) ### Products Made One Month Prior To Shipping (Inventory) Payments Made By Customers 30-60 days After Sale (Accts Rec) Month Cash A/R Inventory Assets Notes Pay Stock R/E L+OE Dec $146,250.00 $68,750.00 $35,000.00 $250,000.00 $0.00 $250,000.00 $0.00 ### Jan $111,250.00 $96,250.00 $52,500.00 $260,000.00 $0.00 $250,000.00 $10,000.00 ### Feb $72,500.00 $137,500.00 $70,000.00 $280,000.00 $0.00 $250,000.00 $30,000.00 ### Mar $30,000.00 $192,500.00 $87,500.00 $310,000.00 $0.00 $250,000.00 $60,000.00 ### Apr -$2,500.00 $247,500.00 $105,000.00 $350,000.00 $0.00 $250,000.00 $100,000.00 ### May -$25,000.00 $302,500.00 $122,500.00 $400,000.00 $0.00 $250,000.00 $150,000.00 ### Jun -$37,500.00 $357,500.00 $140,000.00 $460,000.00 $0.00 $250,000.00 $210,000.00 ### Jul -$40,000.00 $412,500.00 $157,500.00 $530,000.00 $0.00 $250,000.00 $280,000.00 ### Aug -$32,500.00 $467,500.00 $175,000.00 $610,000.00 $0.00 $250,000.00 $360,000.00 ### Sep -$15,000.00 $522,500.00 $192,500.00 $700,000.00 $0.00 $250,000.00 $450,000.00 ### Oct $12,499.00 $577,500.00 $210,000.00 $799,999.00 $0.00 $250,000.00 $549,999.00 ### Unit Sales Sales Revenue Variable Production Costs Fixed Costs Monthly Income Monthly Cash Collections Monthly Cash Flow

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Transcript of Case 11-1 2004

Medieval AdventureCompany

Monthly Unit Sales Production

October ?November 500 750 $27,500.00 $26,250.00 $10,000.00 $0.00 December 750 1000 $41,250.00 $35,000.00 $10,000.00 $5,000.00 January 1000 1500 $55,000.00 $52,500.00 $10,000.00 $10,000.00 $27,500.00 -$35,000.00February 1500 2000 $82,500.00 $70,000.00 $10,000.00 $20,000.00 $41,250.00 -$38,750.00March 2000 2500 $110,000.00 $87,500.00 $10,000.00 $30,000.00 $55,000.00 -$42,500.00April 2500 3000 $137,500.00 $105,000.00 $10,000.00 $40,000.00 $82,500.00 -$32,500.00May 3000 3500 $165,000.00 $122,500.00 $10,000.00 $50,000.00 $110,000.00 -$22,500.00June 3500 4000 $192,500.00 $140,000.00 $10,000.00 $60,000.00 $137,500.00 -$12,500.00July 4000 4500 $220,000.00 $157,500.00 $10,000.00 $70,000.00 $165,000.00 -$2,500.00August 4500 5000 $247,500.00 $175,000.00 $10,000.00 $80,000.00 $192,500.00 $7,500.00September 5000 5500 $275,000.00 $192,500.00 $10,000.00 $90,000.00 $220,000.00 $17,500.00October 5500 6000 $302,500.00 $210,000.00 $10,001.00 $99,999.00 $247,500.00 $27,499.00What We Know:

Unit Cost To Produc 35Unit Sellin Price 55Monthly Fixed Costs $10,000.00 Opening Capital (cash) $250,000.00 Products Made One Month Prior To Shipping (Inventory)Payments Made By Customers 30-60 days After Sale (Accts Rec)

Month Cash A/R Inventory Assets Notes Pay Stock R/E L+OEDec $146,250.00 $68,750.00 $35,000.00 $250,000.00 $0.00 $250,000.00 $0.00 $250,000.00Jan $111,250.00 $96,250.00 $52,500.00 $260,000.00 $0.00 $250,000.00 $10,000.00 $260,000.00Feb $72,500.00 $137,500.00 $70,000.00 $280,000.00 $0.00 $250,000.00 $30,000.00 $280,000.00Mar $30,000.00 $192,500.00 $87,500.00 $310,000.00 $0.00 $250,000.00 $60,000.00 $310,000.00Apr -$2,500.00 $247,500.00 $105,000.00 $350,000.00 $0.00 $250,000.00 $100,000.00 $350,000.00May -$25,000.00 $302,500.00 $122,500.00 $400,000.00 $0.00 $250,000.00 $150,000.00 $400,000.00Jun -$37,500.00 $357,500.00 $140,000.00 $460,000.00 $0.00 $250,000.00 $210,000.00 $460,000.00Jul -$40,000.00 $412,500.00 $157,500.00 $530,000.00 $0.00 $250,000.00 $280,000.00 $530,000.00Aug -$32,500.00 $467,500.00 $175,000.00 $610,000.00 $0.00 $250,000.00 $360,000.00 $610,000.00Sep -$15,000.00 $522,500.00 $192,500.00 $700,000.00 $0.00 $250,000.00 $450,000.00 $700,000.00Oct $12,499.00 $577,500.00 $210,000.00 $799,999.00 $0.00 $250,000.00 $549,999.00 $799,999.00

Sales Revenue

Variable Production Costs

Fixed Costs

Monthly Income

Monthly Cash Collections

Monthly Cash Flow