Case study assignment

Bal Sheet Exhibit 1 Schedule Utensil Box Inc. te Balance Sheet mt As at July 15, 2020 Template Assets Equipment Single Cavity Mold $23,300 Tools and Dies 4,200 Blister Package Mold 4,430 Office Equipment 865 $32,795 Other Patent 13,800 Total Assets $ 46,595 Liabilities Accounts Payable $12,200 Equity Common Stock 34,395 Total liabilities and Equity $ 46,595A chat.openai.com/c/c24eb8f6-b339-4c28-bbc1-7b4355b4d56a New chat ChatGPT 3.5 Liabilities Current t . Equity Assignment Assistance: Su Fill in the values based on your calculations: plaintext Copy code User Instruction, Model Respo 023 (Units: 5,000)** | ** (Units: 10,000)** | ** (Units: 30,000)** User Syllabus, Assist Question - - 1 ! B2 : B12) | =SUM( ' Assets ' !B2: B12) | =SUM( ' Assets ' ! B2: B12) | Collection Period: 47 days. ities' !B2:85) | =SUM( ' Liabilities' !B2:85) | =SUM( 'Liabilities' !B2:85) Currency Value Calculations ! B2 : B4) | =SUM( ' Equity' !B2: B4) | =SUM( 'Equity' ! B2:84) | 3. Cash Budget: Cash Management Package An Create a table with columns for: Self Liquidating Assets . Month/Year Sales Upgrade Get GPT-4, DALL.E, and more Message ChatGPT... RA Harjinder Singh ChatGPT can make mistakes. Consider checking important information. 1:10 PM X 2.C Sunny DODENG 2023-11-25 Type here to search hp pe an home and delete debut DDI imprecr suppr. DII 4+ num lock 10 10 verr.num & 3/4 8 1/2 $ 6 8Acme Bolts Inc. nt Paul Jacob, president of Acme Bolts Inc. (Acme Bolts ), required funding to start manufacturing and marketing a new invention of his, a pasta server. He was uncertain how much funding he would need since the amount was dependent on sales. He wanted to start production in two weeks, on August 1, 2020. Since his distribution system was already arranged, he believed he could start selling as soon as the units were produced. He approached several venture capitalists after being turned down by the Metropolitan Bank, a Canadian charted bank, but was reluctant to agree to what he considered excessive demands for their capital investment. He had just returned from a meeting with Dale Reid, a private investor from Toronto, who had expressed an interest in the firm. In order that he could evaluate his potential investment, Mr. Reid asked Jacob to produce projected income statements, balance sheets, and cash flow statements for Acme Bolts Inc. up to July 31, 2023. History Acme Bolts , founded in May 2020 was owned jointly by Paul and Sally Jacob. The company was formed to design, develop, manufacture and to market a unique household utensil, a pasta server. The specially curved patented plastic apparatus, to be sold retail for $4.30, could be used to stir, pick up and to serve all varieties of pasta. Daill who was 25 had conceived the idea for the davina while working for the End 8:45 PM T 0'C Cloudy ~ ENG 2023-11-25 hnhistory Acme Bolts , founded in May 2020 was owned jointly by Paul and Sally Jacob. The company was formed to design, develop, manufacture and to market a unique household utensil, a pasta server. The specially curved patented plastic apparatus, to be sold retail for $4.30, could be used to stir, pick up and to serve all varieties of pasta Paul, who was 35, had conceived the idea for the device while working for the Food Research Institute of Agriculture Canada as a research biologist. As a recent MBA graduate, he was confident that he could bring his idea to fruition. His enthusiasm was echoed by his wife, Sally, aged 30, who, after having worked as a professional teacher, was to enter an MBA program in September. In addition to her studies, she planned to act as vice-president and secretary of Acme Bolts Inc., while Paul would be President and Treasurer. The Jacobs had already spent $13,800 before incorporation on obtaining patent approval for their invention in Canada and the United States. Patents were also being processed in Italy, Germany, France and Britain. With initial capital of $20,700 raised from personal loans of $12,000 from the Metropolitan Bank and $8,700 from Best Finance Lid., the Jacobs had established an office at their home in Kitchener and had purchased production equipment. Capital expenditures consisted of $865 for office equipment, $23,300 for a single cavity production mold, $4,200 for tools and dies and $4,430 for a blister pack mold. Development costs incurred on the molds were included in these amounts. An aaronment was made with Darfant Arma Dale /20 ready to hanin prodlintin 8:45 PM O'C Cloudy ADD ENG 2023-11-25 hnAn agreement was made with Perfect Plastics, Inc. in Cambridge to manufacture the utensil under contract, using Acme Bolts Inc. molds, at a cost of $.70 per unit. Packaging arrangements were concluded with B. Crawford & Sons Lithographic Lid. of Kitchener to package the products the same month as produced. Distribution agreements were made with Household Ware Sales Inc., Cooker Lid., and Firenzo Sales Lid. Unfortunately, by this time, initial funds had been exhausted on capital expenditures and the final payment of $12,200 was due in August on the production mold. Cash was also required for monthly administrative expenses of $4,300 for salaries, office expenses, insurance, telephone, internet and website maintenance, utilities, automobile expenses, and miscellaneous supplies once production started. Perfect Plastics would not begin production without a 50 per cent deposit and the remainder was due before any units would be released for sale. The packaging company also required cash payments on 8:45 PM O'C Cloudy 2023-11-25 hpProduction esident The pasta server would be manufactured by an injection molding process. The process Inc. made possible the rapid production of highly finished and detailed plastic units. Plastic g to was melted and then injected under thousands of kilograms of pressure into a mold which uring a new was held closed by a clamping mechanism. The devices were formed into a cavity, the a two halves of the mold separated allowing the formed part to fall free. In injection molding, e was much parts could be formed in either single or multiple cavity molds, depending on total ild need production, production rate, size and weight of the part, size of machine available and the int was sales mold cost. Acme Bolts initially planned to use a single cavity production mold (one device start per cycle). Since four cycles could be completed per minute, monthly production capacity VO was about 40,000 units. ust 1, tem Paul feared a stock-out and planned an initial production run of 40,000 units. His ranged production strategy was to order sufficient units to replace units sold, and to maintain a could soon minimum of 10,000 units inventory. Perfect Plastics required production runs of at least re 5,000 units. Paul planned, initially, to store inventory in the basement and garage of his 928 OPKCOR veral home, but if inventory exceeded 10,000 units, he would have to rent warehouse space at a ists cost of $240 per month. The warehouse space, with a capacity of 35,000 units, could be led leased on a monthly basis as needed and no annual lease was required. Lease payments ank, a ted were due the month following. ree to Paul had also discussed with his accountant the problem of depreciation of the production dered mold. The life of a mold depended on the type of steel used, the number of cycles, the 8:45 PM ands T O'C Cloudy 2023-11-25 hp2 of 4 + Automatic Zoom View as Text Download Paul had also discussed with his accountant the problem of depreciation of the production olts Inc. mold. The life of a mold depended on the type of steel used, the number of cycles, the Jacob, president type of material to be molded and the complexity of the part to be manufactured. Handled cme Bolts Inc. ne Bolts ), properly, molds used to manufacture devices similar to the pasta server lasted for millions ired funding to of units. However, from a practical viewpoint, Paul recognized that his single cavity mold manufacturing marketing a new could be obsolete after producing only 162,000 units. His accountant suggested that a tion of his, a depreciation charge of $.145 per unit be used in pro-forma statements to account for wear server. He was rtain how much and tear and obsolescence of the mold. A combined depreciation charge of $.017 per unit ing he would need was recommended for the package mold and tool and dies. In addition, $10 per month the amount was ndent on sales anted to start 2 uction in two s, on August 1, Since his bution system already arranged, elieved he could selling as soon e units were uced. He ached several are capitalists being turned was allowed for depreciation of office equipment, which was to be considered as an by the politan Bank, a administrative expense dian charted but was The products would be blister packaged on an attractive backing which would clearly show ant to agree to the consumer various applications for the device. Products would be packaged the same he considered 8:45 PM ssive demands 0'C Cloudy ~ ENG 2023-11-25 search ho+ Automatic Zoom View as Text Download > > Bolts Inc. Material costs were included in these prices. Acme Bolts would pay for shipping expenses of $.080 per unit, incurred when units were sold. aul Jacob, president Acme Bolts Inc. cme Bolts ). Marketing quired funding to art manufacturing The Jacobs suggested that every family in North America was a potential purchaser, since d marketing a new they believed all families ate some variety of pasta. The Canadian population consisted of vention of his, a sta server. He was 13 million families (2016 Census data). Similar data is provided for Ontario, Toronto and certain how much Kitchener. The United States market was about 10 times larger. ding he would need ce the amount was Household Ware Sales Inc. would handle the accounts of the Hudson's Bay Company, pendent on sales wanted to start Wal-Mart and Target. Cooker Lid. was to handle Sears and independent boutiques. duction in two Firenzo Sales Lid. would handle grocery outlets such as Sobeys, Loblaws and Freshco. eks, on August 1, 20. Since his ribution system The wholesale price by Acme Bolts to the distributors was $1.90 per unit, net 30 days. s already arranged, Paul believed 50 per cent of receipts would be paid the month following the sale and the believed he could t selling as soon remainder within the second month. Wholesalers would sell the product to retail outlets for he units were $2.30. Acme Bolts was also considering expanding distribution to the United States and, luced. He oached several once patents were approved, to Europe. ure capitalists being turned Although no identical products used specifically for pasta were on the market, similar n by the opolitan Bank, a plastic kitchen utensils were occasionally used for pasta serving. These devices sold for adian charted $3.45 to $5.15, with retailers generally receiving a 100 per cent markup. > Inc. A web-site was planned and would be maintained by Sally. The website would have cob, president videos of the pasta server in use and testimonials from happy customers. Initially the Bolts Inc. product would not be available for sale online. However, Paul had contacted an online olts ). funding to distributor of kitchen wares and was investigating the possibilities. ufacturing ceting a new Considerable reliance was placed on the distributors to promote the product. The Jacobs of his, a ver. He was anticipated that 500 units would be given away monthly for the first four months for how much promotional purposes. Paul's accountant suggested that these should be counted as e would need amount was sales expenses at their cost of $1.292 per unit ($.70 for mold manufacturing, $.43 for it on sales d to start in two August 1, ce his system dy arranged d he could g as soon s were He d several pitalists packaging, plus $.162 for depreciation), the same amount as would be used to value turned e inventory. The other suggestion was to delay amortization of the patent until Acme Bolts n Bank, a charted had two profitable years. as agree to Financial Implications sidered of lah. 15 2020 Dale BaiduIne 8:45 PM lemands 0'C Cloudy ~ DENG 2023-11-25 thFinancial Implications View as Text Download > > Exhibit 1 shows the balance sheet for Acme Bolts as of July 15, 2020. Dale Reid was president Is Inc. considering investing up to $85,000 for a 50 per cent share of the equity and profits of the new company. Reid stated that he may be willing to settle for a smaller ownership stake ding to cturing but his investment would be disproportionately lower. He would not consider investing an ig a new amount greater than $85,000 unless the Jacobs increased their investment in the company his, a He was significantly. However, before he made any commitments, he wanted to examine, very w much carefully, a set of pro forma statements for the venture. Reid suggested that the Jacobs ould need ount was calculate the total amount of financing required each month and from those calculations sales. determine the total amount of financing that he would need to invest. start two The Jacobs did not believe that they could invest any more personal funds in the company gust 1 his since their personal assets were tied up in the business, their home and personal ystem possessions (Exhibit 2). arranged, e could s soon Monthly sales of the pasta serving devices were difficult to project. Paul's reasonable vere expectation was 10,000 units and he had prepared a production schedule based on this 920 / PKCOR everal sales level (Exhibit 3). His most pessimistic and optimistic monthly sales forecasts were alists 5,000 units and 30,000 units respectively. If sales were 30,000 units or more per month, med for two consecutive months, he planned to order a larger two-cavity production mold (two Bank, a devices per cycle). The capital cost, including development, would be $63,000, payable in arted three monthly installments, starting the month the equipment was ordered. A three-month gree to lead time, from the time of ordering, was required before this mold would be operational. idered W/han annrational tha mold wild not only dalibin nandiintion mananitil hilt alan alit anote 8:45 PM mands T OC Cloudy E X 2023-11-25 h+ Automatic Zoom View as Text Download > > Its Inc. 5,000 units and 30,000 units respectively. If sales were 30,000 units or more per month, Jacob, president for two consecutive months, he planned to order a larger two-cavity production mold (two me Bolts Inc. devices per cycle). The capital cost, including development, would be $63,000, payable in e Bolts ), three monthly installments, starting the month the equipment was ordered. A three-month ed funding to manufacturing lead time, from the time of ordering, was required before this mold would be operational. arketing a new ion of his, a When operational, the mold would not only double production capacity, but also cut costs server. He was in half to $.35 per unit. Paul's accountant suggested a depreciation allowance of $.062 per tain how much unit for the two-cavity mold. With the reduction in material and depreciation costs, g he would need the amount was inventory would be costed at $.859 per unit. dent on sales. nted to start Paul believed that the first fiscal year's results ending July 31, 2023 were critical for the tion in two on August 1, success of Acme Bolts . He required forecasted cash flow, income statements, and Since his balance sheets for these three different sales projections. Paul planned to use a 18 per ition system eady arranged, cent tax rate. If taxes were payable, they would be due 45 days after Acme Bolts 's year eved he could end of July 31, 2023. lling as soon units were The Jacobs wished to limit the amount of money required from Mr. Reid. They wanted to ed. He ched several retain as much control over the business as possible. However, they recognized the capitalists danger of being under-financed. Once they decided what amount they would request from ing turned y the Mr. Reid, they would complete a formal information package and drop in to see Mr. Reid litan Bank, a In charted with their complete pro forma financial statements. it was 4 t to agree to considered ve demands capital ent. He had 8:46 PM med from a O'C Cloudy ~ ENG 2023-11-25 O archent/8/4150/viewContent/20906942/View Exhibit 1 - Balance Sheet Exhibit 2 - Personal Bal Sheet Exhibit 2 Exhibit 3 - Production Schedule Cash Budget Template Pro Forma Income Stmt Paul & Sally Jacobs Template Balance Sheet Pro Forma Bal Sheet Template As at July 15, 2020 Assets Cash $345 Real Estate 69,000 Automobile 12,075 Stocks, Bonds, Etc. Household & Personal Effects 43,125 Invested in Chef's Toolkit 34,395 Total Assets $ 158,940 Liabilities Bank & Finance Co. Loans $20,700 Mortgages 51,750 Other Liabilities 6,775 $79,225 Net Worth 79,715 Total liabilities and Net Worth $ 158,940 Download Print ePortfolio 8:49Perc X 1 Case X 1 Case x Cha x Cha x + conestoga.desire2learn.com/d21/le/content/874150/viewContent/20906942/View Exhibit 1 - Balance Sheet Exhibit 2 - Personal Bal Sheet Exhibit 3 - Production Schedule Exhibit 3 Cash Budget Template Acme Bolts Inc. Pro Forma Income Stmt Production Schedule Template Aug 2018 - July 2021 Pro Forma Bal Sheet Template Based on: 10,000 units August September October November December January February March April May June July Production Molded 40,000 5.000 7,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Packaged 40,000 5,000 7,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Sales 10,000 10.000 10,000 10,000 10,000 10,000 10,000 10.000 10,000 10,000 10,050 10,000 Promotion 500 500 500 500 Beginning Inventory 29,500 19,000 13,500 10,000 10,000 10,000 10,000 10,000 10,000 10.000 10,000 Home 10,000 10,000 10.000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Warehouse 19.500 9.000 3.500 Ending Inventory 29,500 19.000 13,500 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 check-X ZNH FIN2 X DI Pro X . Perc X Case X 14 Case x Cha x Cha x + conestoga.desire2learn.com/d21/le/content/874150/viewContent/20906942/View X 1 1 - Balance Sheet 1 2 - Personal Bal Sheet 3 - Production Schedule Budget Template Cash Budget for Utensil Box For the year ended July 31, 2021 rma Income Stmt Based on: xxxx units te August September October November December January February March April May June Sales rma Bal Sheet Template Collections One month after sale (50%) Two months after sale (50%) Total Cash Receipts Cash Payments Production cost Packaging cost Shipping expense Administrative expense Warehouse expense Accounts payable Double mold Equipment Total cash payments Net Cash In Flow (Out Flow) Beginning Cash Net Cash Monthly loan (repayment) Ending Cash 8:49 PM Print Download Reflect in ePortfolio