AFB Lecture 3 Solution Spreadsheet for Beetles Ltd updated.xlsx - Beetles Limited all figures in £000s Planning ahead for the first 3 months of Year 1

AFB Lecture 3 Solution Spreadsheet for Beetles Ltd updated.xlsx

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Beetles Limited all figures in £000s Planning ahead for the first 3 months of Year 1 Cash flow planning Month Month Month Total Inventory planning Month Month Month Cash in 1 2 3 Q1 1 2 3 Issue of shares 100 100 Purchases 20 20 20 Bank loan cash 50 50 COGS 15 20 25 From credit customers 30 30 Closing inventory 5 5 0 Sub-total 150 0 30 180 Cash out Equipment purchase 36 36 Payments to suppliers 20 20 40 Wages 10 10 10 30 Various expenses 5 5 10 Annual insurance 1.2 1 Loan repayment 0.75 0.75 0.75 2 Interest payment 0.50 0.50 0.50 2 Sub-total 48.450 36.250 36.250 121 Cash flow 101.550 -36.250 -6.250 59 Opening balance 0 101.550 65.300 0 Closing balance 101.550 65.300 59.050 59 Profit planning Month Month Month Total 1 2 3 Q1 Sales 30 40 50 120 Cost of goods sold 15 20 25 60 Gross profit 15 20 25
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Unformatted text preview: 60 Wages expense 10 10 10 30 Various expenses 5 5 5 15 Insurance expense 0.1 0.1 0.1 0.3 Depreciation expense 1 1 1 3 Operating profit EBIT-1.10 3.90 8.90 11.70 Interest expense 0.5 0.5 0.5 1.50 Net profit-1.60 3.40 8.40 10.20 Tax Profit for month-1.60 3.40 8.40 10.20 And we can extrapolate and forecast the cash and profits for Q2 (the next 3 months) to take us to the first 6 months of trading for this business...and then up to 12 months for the year. All in aid of planning head and seeing the fluctuations and implications for managing our business....
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