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Case ThreeCHEF’S TOOLKIT INC.

Cash Budgeting企业现金需求分析和预算

Case Explanation: cash budgeting

History: Jefferys, invention of Pasta server Production: data Marketing: data Financial Implication: data Data: Composition of Canadian Households;

Balance sheet(July 15, 1994)Jefferys Personal balance sheet (July 15, 1994)Production Schedule in Unit

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Study Questions

Q1：What is the Case? (1)event?(2)Companies?(3)Persons?(4)Time? What is the problem?(5)Why is the problem?(6)Possible Solutions?

Q2：Analyses (1) Background of Chef’s Toolkit Inc.? (2) CV of managers? (3)What is the invention? (4)Company Size-up: production, marketing, and financial status?

Q3：Budgeting(monthly sales : 10,000; 5,000; 30,000): production schedule, cash budget, Pro-forma income statement, Pro-forma balance sheet

Q4：How can the firm avoid loss? Break –even calculation?

Q5: How much money do the firm need for financing? Should Dale Raid invest? What are his risks?

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Case Summary（案例）

Mr. Dale Reid

Private InvestorMr. Peter Jeffery

President of

Chef’s Toolkit Inc.

Obtain funds to start manufacturing and marketing a new pasta server.

风险投资家

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Case Summary（案例）

Produce Sell

Pasta ServerChef’s Toolkit Inc. Chef or Housewife

意大利通心粉

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Objectives（目标）

Produce projected incomestatements, balance sheets,and cash flow statement upto July 31, 1995.

Obtain fund from Dale Reid.预计财务报告

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Why Budget?If you know where you are going, you’re more likely to get there….

Plan Perform Evaluate Report

预算

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Preparation of the Budget for a Manufacturing Organization

销售预算

生产预算

成本和费用预算

现金预算

预计的财务报告

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Preparation of the Cash Budget for Chef’s Toolkit Inc.

Production Schedule

Cash Budget

Pro-forma income statement Pro-forma balance sheet

生产计划

现金预算

预计的利润表 预计的资产负债表

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Analyses（分析）

Background of Chef’s Toolkit Inc. (背景) CVs of Peter and Sally Jeffery (简历) Invention: Pasta Server (发明) Production(生产) Marketing(销售) Financial Status(财务状况) Budgeting(预算)

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Financial Status(财务状况)

Dale Reid: invest $85,000 for 50 percent of ownership.(出资)

Jefferys: can not invest any more personal funds.

Monthly Sales(月销售预计): 10,000 unit, 5,000 unit, 30,000 units.

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Budgeting(预算)

Prepare a monthly production schedule Prepare a monthly cash budget Prepare income statement Prepare balance sheets Fiscal year-end: July 31, 1995

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Monthly production schedule(生产计划)

Beginning Inventory Total+Production-Sales-PromotionEnd Inventory Total-HomeWarehouse

期初存货

期末存货

生产

销售

促销

家中存货

仓库存货

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Direct Material Budget（成本预算）

Units x Direct Materials cost（产量x生产成本）

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The Cash Budget（现金预算）

The Cash Budget is a projection of the cash an organization will receive and the cash it will pay out.（现金流入－现金流出）

Shall we consider the depreciation?（折旧）

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Cash BudgetsCash Receipts-Cash DisbursementsChange in Cash+Beginning CashNet Cash FlowRequired Financing: Beginning- Net Cash FlowFinancing Shortfall

现金流入

现金流出

现金变动

期初现金

融资需求

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Reports on profitability of business

Revenues minus Expenses

Net income

equals

If expenses > revenue = net

loss

收入费用

净利润 亏损

Pro-forma income statement（预计利润表）

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Reports the entity’s assets, liabilities, and owner’s equity as of a specific date

Balance Sheet

Equity

LiabilitiesAssets资产

负债

所有者权益

Pro-forma balance sheet（预计资产负债表）

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Do it using Excel Monthly Sales: 5,000 unit Monthly Sales: 30,000 unitsa larger production mold.

- Capital cost: $62,000, payable in three monthly installments.;

- Double production capacity;- $0.35 per unit costs- Depreciation: $0.062 per unit- Inventory: $0.848 per unit How can the firm avoid loss?

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Break-even Calculations (盈亏平衡点）

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What Happened （结果）

The Jeffery received $75,000 in financing from Dale Reid.（出资）

Product Sales in the first two years were below the 10,000 unit level.

The firm filed for bankruptcy.（破产）