Analysis of monthly cash budget of Cyrus Brown Manufacturing Company. - Essay Example

Only on StudentShare

Extract of sample
Analysis of monthly cash budget of Cyrus Brown Manufacturing Company.

We will note from the income statement the net cash inflows from operations during the year after deducting the direct manufacturing costs and indirect expenses. As shown from the FS, the sales forecast for March and April are not sufficient to produce profit for the said months as expenses exceed projected sales. For the month of May, profit will be realized as projected sales have been increased. A substantial loss is seen for the month of June. A brief analysis of the data reveals that the loss is because of an investment made for plant structure and payment of taxes. The biggest sales forecast comes in September; however, it is also coupled with corresponding increase of expenses that includes second installment of payment of taxes; total expenses are 90% of sales. Accordingly, expected profit is reduced. There is a 42% drop in sales in October which is quite significant as it will also considerably affect the projected profit of the company and will reduce the cash receipts for the month. There is no explanation why the forecast of sales has gone down in October and November. TheTaxes have been deducted from the computations so the earnings that are shown in the balance are NET, that is no tax and interest have to be deducted. ...
Download paper

Summary

Annex 1 exhibits the projected financial statement of Cyrus Brown Manufacturing Company for 9 months and a Cash Flow Statement. From these statements, we can see the projected progress of sales of CBM for the 9 months period, and readily appreciate the data on its year end…
Author : braedenchamplin

Related Essays

Company analysis: Apple Inc.
11 pages (2761 words) Research Paper
Tesco Company Pestle Analysis
8 pages (2008 words) Essay
Strategic Analysis: Under Armour Sportswear
16 pages (4016 words) Essay
Foreign Market Entry and Diversification
4 pages (1004 words) Research Paper
analysis of company (Netflix)
7 pages (1757 words) Coursework
company analysis : N Brown Group plc
4 pages (1004 words) Essay
Supermarket Company Strategic Analysis
12 pages (3012 words) Assignment
group types and group characteristics
5 pages (1255 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!