Hampton Machine Tool Company
Exhibit 1 Shipments at Selling Price (thousands of dollars) As Forecast As Forecast Dec. 1978 Actual Sept. 1979 1979 January $1,302 $861 February $1,872 $672 March $1,635 $1,866 April $1,053 $1,566 May $1,293 $873 June $1,479 $1,620 July $1,488 $723 August $1,797 $507 Eight months total $11,919 $8,688 September October November December
$1,299 $1,347 $1,311 $2,298
$2,163 $1,505 $1,604 $2,265
$2,500 $2,000 $1,500 $1,000 $500 $0
Forecast Actual
Hampton Machine Tool Company
Exhibit 2 Balance Sheets, 1978-1979 (thousands of dollars) 1978 1979 ov. ec. ar. une uy Cash $2,520 $491 $505 $1,152 $1,678 Accounts receivable, net $1,245 $1,863 $1,971 $1,893 $1,269 Inventories $2,601 $2,478 $3,474 $3,276 $3,624 Current assets $6,366 $4,832 $5,950 $6,321 $6,571 Gross fixed assets $4,010 $4,010 $4,010 $4,010 $4,010 Accumulated depreciatio $2,998 $3,010 $3,040 $3,070 $3,080 Net fixed assets $1,012 $1,000 $970 $940 $930 Prepaid expenses $62 $40 $39 $24 $24 Total assets $7,440 $5,872 $6,959 $7,285 $7,525
ug. $1,559 $684 $4,764 $7,007 $4,010 $3,090 $920 $42 $7,969
Notes payable, bank Accounts payable Accruals Taxes payable* Customer advances Current liabilities Common stock ($10 par Surplus Net worth Total liabilities and net w
$1,000 $948 $552 $479 $1,566 $4,545 $428 $2,996 $3,424 $7,969
$0 $348 $561 $150 $840 $1,899 $1,178 $4,363 $5,541 $7,440
$1,000 $371 $777 $74 $1,040 $3,262 $428 $2,182 $2,610 $5,872
$1,000 $681 $849 $373 $1,040 $3,943 $428 $2,588 $3,016 $6,959
$1,000 $399 $678 $354 $1,566 $3,997 $428 $2,860 $3,288 $7,285
$1,000 $621 $585 $407 $1,566 $4,179 $428 $2,918 $3,346 $7,525
*Tax payments in 1979 include $75,000 due March 15 on underpayment of 1978 taxes and four equal payments of $181,000 due on the 15th of April, June, September, and December for estimated 1979 tax liability with any underpayment of 1979 t axes due March 15, 1980.
Hampton Machine Tool Company
Exhibit 3 Income Statements, 1978-1979 (thousands of dollars)
Net sales Cost of sales* Gross profit Selling and admin expens Interest expense Net income before tax Income taxes Net income Dividends
Fiscal Year Ending 31/12/78 $7,854 $5,052 $2,802
Dec. 1978 $1,551 $1,122 $429
Jan. $861 $474 $387
Feb. $672 $369 $303
Mar. $1,866 $1,362 $504
$1,296 $0 $1,506
$248 $0 $181
$103 $15 $269
$61 $15 $227
$205 $15 $284
$172 $15 $242
$723
$87
$129
$109
$136
$783
$94
$140
$118
$50
$25
$0
$0
1979 Apr. May $1,566 $873 $1,137 $567 $429 $306
June $1,620 $1,197 $423
July $723 $510 $213
Aug. $507 $276 $231
$96 $15 $195
$130 $15 $278
$87 $15 $111
$66 $15 $150
$116
$94
$133
$53
$72
$148
$126
$101
$145
$58
$78
$0
$0
$0
$100
$0
$0
* Includes depreciation charges of $150,000 in 1978, $12,000 in December 1987, and $10,000 per
Hampton Machine Tool Company
Eight Months Ending 31/8/79 $8,688 $5,892 $2,796 $920 $120 $1,756 $842 $914 $100
Hampton Machine Tool Company
mpton Machine Tool Pro Forma Statements (thousands of dollars) June $1,620
Historical July $723
Aug. $507
$1,327 $293 $15 $278 $133 $145
$597 $126 $15 $111 $53 $58
$342 $165 $15 $150 $72 $78
Sept. $2,163 $600 $1,320 $105 $2,025 $10 $400 $2,435 ($272) $15 ($287) ($138) ($149)
$100 $45
$0 $58
$0 $78
$0 ($149)
$0 $230
$0 $242
Cash (plug) Accounts receivable, net Inventories Current assets Gross fixed assets Accumulated depreciation Net fixed assets Prepaid expenses Total assets
$1,152 $1,893 $3,276 $6,321 $4,010 $3,070 $940 $24 $7,285
$1,678 $1,269 $3,624 $6,571 $4,010 $3,080 $930 $24 $7,525
$1,559 $684 $4,764 $7,007 $4,010 $3,090 $920 $42 $7,969
$699 $1,323 $3,339 $5,361 $4,010 $3,100 $910 $42 $6,313
$1,007 $779 $3,234 $5,020 $4,360 $3,110 $1,250 $42 $6,312
$766 $1,604 $3,129 $5,499 $4,360 $3,124 $1,237 $42 $6,778
($331) $2,265 $3,024 $4,958 $4,360 $3,137 $1,223 $42 $6,223
Notes payable, bank Accounts payable Accruals Taxes payable* Customer advances Current liabilities Common stock ($10 par valu Surplus Net worth Total liabilities and net worth
$1,000 $399 $678 $354 $1,566 $3,997 $428 $2,860 $3,288 $7,285
$1,000 $621 $585 $407 $1,566 $4,179 $428 $2,918 $3,346 $7,525
$1,000 $948 $552 $479 $1,566 $4,545 $428 $2,996 $3,424 $7,969
$1,000 $600 $552 $160 $726 $3,038 $428 $2,847 $3,275 $6,313
$1,350 $600 $552 $305 $0 $2,807 $428 $3,077 $3,505 $6,312
$1,350 $600 $552 $529 $0 $3,031 $428 $3,319 $3,747 $6,778
$0 $600 $552 $888 $0 $2,040 $428 $3,755 $4,183 $6,223
$526
($119)
($860)
$308
($241)
($1,097)
Net sales Purchases WIP inventory reduction Raw materials reduction Cost of goods sold Depreciation Other expenses Cost of sales and other expe EBIT Interest expense Net income before taxes Income taxes Net income Dividends Earnings retained
Change in cash
Pro Forma Oct. Nov. $1,505 $1,604 $600 $600 $0 $0 $105 $105 $705 $705 $10 $14 $400 $400 $1,115 $1,119 $390 $486 $15 $20 $375 $466 $145 $223 $230 $242
Dec. $2,265 $600 $0 $105 $705 $14 $400 $1,119 $1,147 $20 $1,127 $541 $586
$150 $436
Hampton Machine Tool Projected Cash Budget (thousands of dollars) September October November
December
January
Cash Inflows:
Collections of Receivables: Bank Loan: Total cash inflows: $
-
$
-
$
-
$
-
$
-
-
$
-
$
-
$
-
$
-
Cash Outflows:
Payments of Accounts Payable: Other Operating Outflows: Purchase New Equipment: Tax Payments: Interest Payments to Bank: Principal Repayments to Bank: Dividends: Total cash outflows: $ Reconciliation:
Begining cash balance: Net cash flow: Ending cash balance:
