Letsgo Travel Study Case

“Production , Purchasing and Cash Budgets for Letsgo for the period Jan-Jun 1998 “Production Budget “Oct “Nov “Dec “Jan “Feb “Mar “Apr “May “Jun “Jul “Aug “Sales Value “1439000 “2131000 “2500000 “4000000 “5000000 “3000000 “2200000 “1100000 “Budgeted Sales “1678 “1439 “2131 “2500 “4000 “5000 “3000 “2000 “1000 “1000 “1000 “Unit Price “1000 “1000 “1000 “1000 “1000 “1000 “1100 “1100 “Add Desired Ending Inventory (Note 3 “587 .8 “726 .2 “1000 “1100 “1300 “900 “700 “500 “500 “500 “Total Needs “2265 .8 “2165 .2 “3131 “3600 “5300 “5900 “3700 “2500 “1500 “1500 “Less : Beginning Inventory “587 .8 “726 .2 “1000 “1100 “1300 [banner_entry_middle]

“900 “700 “500 “500 “Trailer Production “1577 .4 “2404 .8 “2600 “4200 “4600 “2800 “1800 “1000 “1000 “Purchases Budget “Jan “Feb “Mar “Apr “May “Jun “Jul “Trailer Production “1600 “2400 “2600 “4200 “4600 “2800 “1800 “1000 “1000 “Sheet Metal Needs per trailer (Sq .yds “30 “30 “30 “30 “30 “30 “30 “30 “30 “Total production needs “48000 “72000 “78000 “126000 “138000 “84000 “54000 “30000 “30000 “Add : Desired Ending Inventory “36000 “39000 “63000 “69000 “42000 “27000 “15000 “15000 “0 “Total Material Needs “84000 “111000 “141000 “195000 “180000 “111000 “69000 “45000 “Less : Beginning inventory “36000 “39000 “63000 “69000 “42000 “27000 “15000 “Total sheet metal purchases “75000 “102000 “132000 “111000 “69000 “42000 “30000 “Cost per square yard (Note 1 “6 “6 “6 “6 “6 “6 “6 “6 “Total Cost “450000 “612000 “792000 “666000 “414000 “252000 “180000 “Material Cost /Merchandise Purchases “0 .098 “0 .6667 “0 .6667 “0 .6667 “0 .6667 “0 .3333 “Expense Budgets “Jan “Feb “Mar “Apr “May “Jun “Jul “Merchandise purchases (Note 4 “750000 “850000 “870000 “1320000 “1110000 “690000 “420000 “330000 “Wages “624000 “1008000 “1104000 “672000 “432000 “240000 “Heat , light power “130000 “195000 “220000 “135000 “110000 “110000 “Equipment rental “390000 “390000 “390000 “340000 “340000 “340000 “Equipment purchases “300000 “300000 “300000 “300000 “300000 “300000 “Depreciation “250000 “250000 “250000 “275000 “275000 “275000 “Selling admin “400000 “400000 “400000 “400000 “400000 “400000 “Cash Budget “Jan “Feb “Mar “Apr “May “Jun “Jul “Cash beginning balance “100000 “100000 “100000 “100000 “100000 “100000 “580729 “Add : Collections “1701500 “2528600 “3150000 “3650000 “3850000 “2295000 “1430000 “Total cash available “1801500 “2628600 “3250000 “3750000 “3950000 “2395000 “2010729 “Less : Cash disbursements “Merchandise Purchases “850000 “870000 “1320000 “1110000 “690000 “420000 “330000 “Other expenses (Note 2 “1844000 “2293000 “2414000 “1847000 “1582000 “1390000 “0 “Total Cash Disbursements “2694000 “3163000 “3734000 “2957000 “2272000 “1810000 “330000 “Excess (Deficiency “-892500 “-534400 “-484000 “793000 “1678000 “585000 “1680729 “Financing “Borrowings (Note 5 “992500 “634400 “584000 “0 “0 “0 “0 “Repayments (Note 5 “0 “0 “0 “693000 “1578000 “4271 “0 “Interest (Note 6 “0 “9925 “16368 “22371 “15665 “42 “0 “Total Financing “992500 “1636825 “2237193 “1566564 “4229 “0 “0 “Cash balance ending “100000 “100000 “100000 “100000 “100000 “580729 “1680729 “Production , Purchase and Cash Budgets assuming stable Production of 3000 units per month “Production Budget “Nov “Dec “Jan “Feb “Mar “Apr “May “Jun “Total “Sales (Value “1439000 “2131000 “2500000 “4000000 “3500000 “3000000 “2000000 “1000000 “Production (Trailers “3000 “3000 “3000 “3000 “3000 “3000 “Add : Beginning Inventory “1000 “1500 “500 “0 “0 “1000 “Total Available… [banner_entry_footer]