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Ex1: Compute Required New Fund (RNF):
A L
RNF = S (ΔS) – S (ΔS) – PS2(1-D)
. A (Asset) = Equity + Libility = (50% x $600,000) + $120,000 = $420,000
. L (Liabilities) = $120,000
. S (Old Sale) = $600,000
. S2 (New Sale) = $1,200,000
. ∆S (Change in Sale) = S2 – S = $1,200,000 - $600,000 = $600,000
. P (Profit Margin) = 8% or 0.08
. D (Dividend) = 0%
$420,000 $120,000
=> RNF = $600,000 ($600,000) – $600,000 ($600,000) – (0.08)($1,200,000)(1-0)
=> RNF = $420,000) – $120,000 – $96,000 = $204,000
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Ex2: Computer Total Sale Projection
Total Sale Projection = (0.20 x 100 x $20) + (0.50 x 180 x $25) + (0.30 x 210 x $30)
= $4,540
Ex3: Compute Sale Projection
. Estimated Unit to be Sale = 2,000 units + (2,000 units x 25%) = 2,500 units
. Est. Cost per unit = $160 x (1 + 10%) = $160 x 1.1 = $176
=> Net Sale = Sale – Sale Return & Allowance
= (2,500 u x $176) – (2,500 u x $176 x 5%) = $418,000
Ex4: (Homework)
Compute Units to be produce:
. Est. Project Sale = 4,800 units
. Ending Inventory = 10% x 4,800 units = 480 units
. Beginning Inventory = 300 units

2. => Unit to be Produce = Est. Project Sale + Ending Inventory – Begin. Inventory
= 4,800 units + 480 units – 300 units = 4,980 units
Ex5: Compute Units to be produce
. Est. Project Sale = 6,000 u + (6,000 u x 50%) = 9,000 units
. Ending Inventory = 5% x 9,000 units = 450 units
. Beginning Inventory = 200 units
=> Unit to be Produce = Est. Project Sale + Ending Inventory – Begin. Inventory
= 9,000 units + 450 units – 200 units = 9,250 units
Ex6: (Homework)
Compute Units to be produce:
. Est. Project Sale = 60,000 units
. Ending Inventory = 30% x 22,000 units = 6,600 units
. Beginning Inventory = 22,000 units
=> Unit to be Produce = Est. Project Sale + Ending Inventory – Begin. Inventory
= 60,000 units + 6,600 units – 22,000 units = 44,600 units
Ex7: (Homework)
First In, First Out Method (FIFO):
Beginning : 600 units @ $28 = 16,800
$
Sale1,500 units 
 January :900 units @ $32 = 28,800
$
=> COGS = $16,800 + $28,800 = $45,600
=> Ending Inventory = (1,200 units – 900 units) x $32 = $9,600
Ex8: Compute Cost of Goods Sold (COGS):
a. Last In, First Out Method (LIFO):
February : 750units × 16 = 12,000
$ $
Sale1,050 units 
Beginning :300units × 12 = 3,600
$ $
=> COGS = $15,600
=> Ending Inventory = (825 – 300) x $12 = $6,300
b. First In, First Out Method (FIFO):
Beginning : 825 units @ $12 = 9,900
$
Sale1,050 units 
February : 225 units @ $16 = 3,600
$
=> COGS = $9,900 + $3,600 = $13,500
=> Ending Inventory = (750 – 225) x $16 = $8,400
Ex9: Compute Gross Profit:
Gross Profit = Sale – COGS
. Sale = 17,000 units x $20 = $340,000
Compute COGS (FIFO):
 Beginning : 5,000 units @ $12 = 60,000
$
Sale17,000 units 
production : 12,000 units @ ($10 + 4 + 2) = 192,000
$ $ $
=> COGS = $60,000 + $192,000 = $252,000
=> Gross Profit = $340,000 - $252,000 = $88,000

3. Compute Cost of Ending Inventory:
Cost of Ending Inventory = (15,000 units – 12,000 units) x ($10 + $4 + $2) = $48,000
Ex10: (Homework) – LIFO
Compute Gross Profit:
Gross Profit = Net Sale – Cost of Goods Sold
. Net Sale = 17,000 units x $20 = $340,000
production :15,000units × 10 + 4 + 2) =$240,000
($ $ $
. Sale17,000 units 
Beginning : 2,000units × 12 =$24,000
$

=> Cost of Goods Sold = $240,000 + $24,000 = $264,000
=> Gross Profit = $340,000 - $264,000 = $76,000
Compute Cost of Ending Inventory:
Cost of Ending Inventory = (5,000 units – 2,000 units) x ($12) = $36,000
Ex11: (Homework)
Compute Gross Profit:
Gross Profit = Net Sale – Cost of Goods Sold
. Net Sale = 31,500 units x $29.60 = $932,400
.
production : 28,500units × 11.50 +$4.80 +$6.20) =$641,250
($
Sale 17,000 units 
 Beginning : 3,000units × 9.00 +$5.00 +$4.10) =$54,300
($
=> Cost of Goods Sold = $641,250 + $54,300 = $695,550
=> Gross Profit = $932,400 - $695,550 = $236,850
Compute Cost of Ending Inventory:
Cost of Ending Inventory = (4,000 units) x ($9 + $5 + $4.10) = $72,400
Ex12: Prepare Schedule of Cash Receipt for 4th Quarter of the Year:
4th Quarter
September October November December
Sale............................................................... $70,000 $60,000 $55,000 $80,000
Cash Collection:
. 30% in current month of sale.............. - 18,000 16,500 24,000
. 60% in next month of sale................... - 42,000 36,000 33,000
. 10% can not collected.......................... - - - -
Total Cash Receipt...................................... - $60,000 $52,500 $57,000
Ex13: Prepare Schedule of Cash Receipt from March to August:
Jan. Feb. Mar. April May June July Aug. Sept. Oct.
Sale forecasting............. 27,000 26,000 24,000 30,000 18,000 28,000 35,000 38,000 - -
Collection:
. 10% can not collect... 2,700 2,600 2,400 3,000 1,800 2,800 3,500 3,800 - -
. 30% in mth of sale..... 8,100 7,800 7,200 9,000 5,400 8,400 10,500 11,400 - -

4. . 40% in next 1 mth...... - 10,800 10,400 9,600 12,000 7,200 11,200 14,000 15,200 -
. 20% in next 2 mths.... - - 5,400 5,200 4,800 6,000 3,600 5,600 7,000 7,600
Total Cash Receipt..... 8,100 18,600 23,000 23,800 22,200 21,600 25,300 31,000 22,200 7,600
=> Amount can not collect = $2,400 + $3,000 + $1,800 + $2,800 + $3,500 + $3,800 = $17,300
=> Amount not yet collect = $22,200 + $7,600 = $29,800
Ex14: Prepare Schedule of Cash Payment:
Dec. Jan. Feb. Mar. April May June July Aug.
Sale forecasting..................... - 12,000 16,000 18,000 24,000 12,000 20,000 22,000 -
Material purchased
(20% of next mth sale)..... 2,400 3,200 3,600 4,800 2,400 4,000 4,400 - -
Payment:
. 40% pay in mth ................ 960 1,280 1,440 1,920 960 1,600 1,760 - -
. 60% pay in next 1 mth...... - 1,440 1,920 2,160 2,880 1,440 2,400 2,640 -
. Direce Labor ($6,000)....... 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000
. MOH ($3,000)................... 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
. Interest Expense............... - - - 4,500 - - 4,500 - -
. Commission (*)................... - - - - - - 3,060 - -
Total Cash Payment............. 9,960 11,720 12,360 17,580 12,840 12,040 20,720 11,640 9,000
(*) Compute Commission:
Commission = 3% of sale from January to June
= 3% x ($12,000 + $16,000 + $18,000 + $24,000 + $12,000 + 20,000) = $3,060
Ex15: Prepare Schedule of Cash Receipt:
Sept. Oct. Nov. Dec. Jan. Feb.
Sale forecasting..................................... 6,000 10,000 16,000 12,000 - -
Sale by Cash (20%)............................... 1,200 2,000 3,200 2,400 - -
Sale on Credit (80%).............................. 4,800 8,000 12,800 9,600 - -
Collection:
. 40% in next 1 mth.............................. - 1,920 3,200 5,120 3,840 -
. 60% in next 2 mths............................ - - 2,880 4,800 7,680 5,760
Total Cash Receipt................................ 1,200 3,920 9,280 12,320 11,520 5,760
Prepare Cash Budget:
Nov. Dec.
1. Cash Receipt.................................................................... 9,280 12,320
2. Less: Cash Payment........................................................ (13,000) (6,000)
3. Net Cash Flow [(1)-(2)]..................................................... (3,720) 6,320
4. Beginning Cash Balance.................................................. 5,000 5,000
5. Cumulative Cash Balance [(3) + (4)]................................ 1,280 11,320
6. Monthly Loan or (Repayment).......................................... 3,720 (3,720)
7. Cumulative Loan Balance................................................ 3,720 0
8. Ending Cash Balance [(5) + (6)]....................................... 5,000 7,600

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