Secutest manufactures a single product category. The forecast for the first quarter of year N is as

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Question:

Secutest manufactures a single product category. The forecast for the first quarter of year N is as follows.

Sales function :

The sales forecast for the quarter is 1850 units with the following seasonal coefficients:

January	February	March
0,811	0,973	1,2162

The selling price of a unit is 1 200 €.

It is planned to sell 850 products in April.

The monthly sales costs are considered fixed and are as follows:

Budget commercial expenses
	January	February	March	Total Quarter
Salary and social charges	7000	7000	7000	21000
Depreciation	2000	2000	2000	6000
Commercial expenses	3000	3000	3000	9000
TOTAL commercial budget	12000	12000	12000	36000

Production Function:

The company wishes to systematically have a stock of products at the end of each month representing 20% of the sales forecast for the following month. The product inventory on January 1, N should represent 100 units, with a value of €125,000. Products inventory is valued at a standard cost of production of €1,250 per unit.

The production of one unit of product requires half an hour of machine operation. The current machines can provide 350 hours per month. When the need in terms of production capacities in a month exceeds the capacity of the machines, the company calls upon a subcontractor to complete its internal production. The subcontractor invoices his production at €1,400 excluding VAT per unit. He delivers his products to the company in the month corresponding to the need.

Each hour of machine operation generates variable costs (energy, consumables, etc.) of €30.

Personnel costs are fixed and represent a total of €50,000 per month.

Depreciation of production assets represents €40,000 per month.

The other manufacturing costs represent €20,000 € per month.

Purchasing Function:

Each unit manufactured internally requires 20 kg of raw material. The company obtains its raw materials from a local supplier, which allows it to manage its purchases on a just-in-time basis. The stock of raw materials is therefore considered to be negligible.

In the first quarter N, the expected purchasing price of the raw material is 40 € per kg.

The monthly operating costs of the purchasing department are as follows:

	Janvier	Février	Mars	Total trimester
Salary and social charges	5000	5000	5000	15000
Depreciation	1000	1000	1000	3000
Various expenses	2000	2000	2000	6000
Total	8000	8000	8000	24000

Administration Function:

Administrative staff costs amount to €20,000 per month.

The depreciation of the administrative department on its current fixed assets (still in service on January 1) amounts to €20,000 per month.

In January, It is planned to invest and put into service equipment costing €15,000 excluding VAT. It will be depreciated linearly over 5 years.

The various administrative expenses represent €30,000 per month.

In addition, the company has taken out a loan for which it pays a monthly reimbursement of €3,000. This monthly payment includes the interest of 310€ in January, 300€ in February, and 290€ in March.

1°) Present all the monthly and quarterly budgets by function for the first quarter of year N, indicating any intermediate steps in reasoning and validation.

2°) Present the quarterly income statement on 31/03/N

3°) Answer the questions on the financial consolidation