WELCOME

TO
OUR PRESENTATION
 A Presentation On

Developing an Effective Business Model

 Business Model
Model
Plan or diagram used to describe something
Business Model
Plan or diagram for how it-
Competes,
Uses its resources,
Structures its relationships,
Interfaces with customers, and
Creates value to sustain itself
Includes all the activities that define how a firm
competes in the marketplace
 Business Model
Model
Plan or diagram used to describe something
Business Model
Plan or diagram for how it-
Competes,
Uses its resources,
Structures its relationships,
Interfaces with customers, and
Creates value to sustain itself
Includes all the activities that define how a firm
competes in the marketplace
 Schedule 1 Sales Budget
For the Year Ended December 31,2013
Particulars Quarter Year
1st 2nd 3rd 4th
Budgeted sales in cases 11,500 34,500 46,000 23,000 115,000
Selling price per case 23 23 23 23 23
Total sales 264,500 793,500 1,058,000 529,000 2,645,000
70%
% of sales collected in the period of sale
30%
% of sales collected in the period of sale

Schedule of expected cash collections

Accounts receivable , beginning balance 103,500 130,500
First quarter sales 185,150 79,350 264,500
Second quarter sales 555,450 238,050 793,500
Third quarter sales 740,600 317,400 1,058,000
Fourth quarter sales 370,300 370,300

Total cash collections 288,650 634,800 978,650 687,700 2,589,800

 Schedule 2
Production Budget
For the Year Ended December 31, 2013

Particulars Q.1 Q.2 Q.3 Q.4 Year

Budgeted sales 11,500 34,500 46,000 23,000 115,000
Add: desired ending inventory 8,625 11,500 5,750 7,500 7,500
Total needs 20,125 46,000 51,750 30,500 122,500
Less : Beginning inventory 2,875 8,625 11,500 5,750 2,875
Required production 17,250 37,375 40,250 24,750 119,625
 Schedule 3 Direct Materials Budget
For the Year Ended December 31, 2013
Particulars Q.1 Q. 2 Q. 3 Q. 4 Year
Required production in cases 17,250 37,375 40,250 24,750 119,625
Raw materials needed per case 17 17 17 17 17
Production needs 293,250 635,375 684,250 420,750 2,033,625
Add : Desired ending inventory 76,245 82,110 50,490 45,000 45,000
Total needs 369,495 717,485 734,740 465,740 2,078,625
Less: Beginning inventory 35,190 76,245 82,110 50,490 35,190
Raw materials to be purchased 334,305 641,240 652,630 415,260 2,043,435
Cost of per pound .30 .30 .30 .30 .30
Cost of raw materials to be purchased 100,291.5 192,372 195,789 124,578 613,030.5

% of purchases paid for in the period of purchase 50%

% of purchases paid for in the period after purchase 50%
Schedule of expected cash disbursements
A/C payable balance 29,670.00 29,670
First quarter purchases 50,145.75 50,145.75 100291.5
Second quarter purchases 96,186.00 96,186.00 192,372
Third quarter purchases 97,894.50 97,894.5 195,789
Fourth quarter purchases 62,289 62,289
Total cash disbursements 79,815.75 146,331.75 194,080.50 160,183.50 580,411.50
 Schedule 4
Direct Labor Budget
For the Year Ended December 31, 2013

Particulars Q. 1 Q. 2 Q.3 Q.4 Year

Required production 17,250 37,375 40,250 24,750 119,625
DLH per case .3 .3 .3 .3 .3
Total DLH needed 5,175 11,212.5 12,075 7,425 35,887.5
Direct labor cost per 15 15 15 15 15
hour 77,625 168,187.5 181,125 111,375 538,312.5
Total direct labor cost

Note: DLH-Direct Labor Hour

 Schedule 5
Manufacturing Overhead Budget
For the Year Ended December 31, 2013
Particulars Q. 1 Q. 2 Q.3 Q.4 Year
Budgeted direct labor 5175 11212.5 12075 7425 35887.5
Variable manufacturing overhead rate 4 4 4 4 4
Variable manufacturing overhead 20700 44850 48300 29700 143550
Fixed manufacturing overhead 70,000 70,000 70,000 70,000 280,000
Total manufacturing overhead 90700 114,850 118300 99,700 423,550
Less: depreciation 20,000 20,000 20,000 20,000 80,000
Cash disbursements for manufacturing
overhead 70,700 98850 98,300 79700 343550
Total manufacturing overhead(a)
423550
Budgeted direct labor (b)
35887.5
Predetermined overhead rate for the
year (a)(b)
11.802
 Schedule 6

Ending Finished Goods Inventory Budget

For the Year Ended December 31, 2013

Item Quantity Cost Total

Production cost per case:

Direct materials 17 pounds .30 per pound 5.10
Direct labor .30 hours 15 per hour 4.50
Manufacturing overhead .30 hours 11.802 per hour 3.54
Unit product cost 13.14

Budgeted finished goods inventory :

Ending finished goods inventory in cases 7,500
Unit product cost
Ending finished goods inventory in BDT 13.14
98,550
 Schedule 7 Selling and Administrative Expense Budget
For the Year Ended December 31, 2013
Particulars Quarter Year
1 2 3 4
Budgeted sales in cases 11,500 34,500 46,000 23,000 115,000
Variable selling and administrative
expense per case Tk. 2 Tk. 2 Tk. 2 Tk. 2 Tk. 2
Variable selling and administrative
expense Tk.23,000 Tk.69,000 Tk.92,000 Tk.46,000 Tk.230,000
Fixed selling and administrative
expenses:
Advertising 15,000 15,000 15,000 15,000 60,000
Executive salaries 60,000 60,000 60,000 60,000 240,000
Insurance 8,000 8,000 8,000 8,000 32,000
Property taxes 4,000 4,000 4,000 4,000 16,000
Depreciation 12,000 12,000 12,000 12,000 48,000
Total fixed selling and administrative
expenses 99,000 99,000 99,000 99,000 396,000
Total selling and administrative
expenses 122,000 168,000 191,000 145,000 626,000
Less: Depreciation 12,000 12,000 12,000 12,000 48,000
Cash disbursements for selling and
administrative expenses Tk.110,000 Tk.156,000 Tk.179,000 Tk.133,000 Tk.578,000
 Cash Budget
Schedule 8
For the Year Ended December 31, 2013
Particulars Schedule Q.1 Q.2 Q.3 Q.4 Year

Cash balance,
beginning Tk.46,700 Tk.33,409.25 Tk.32,940 Tk.46,700
Add receipts: Tk.286,884.5
Collection from
customers 1 288,650 634,800 9,78,650 2,589,800
Total cash available 335,350 668,209.25 1,011,590 687,700 2,636,500
Less disbursements: 97,458,415
Direct materials 3 79,815.75 146,331.75 194,080.50 580,411.5
Direct labor 4 77,625 168187.5 181,125 160,183.5 538,312.5
Manufacturing 111,375
overhead 5 84,500 124,750 130,500 439,250
Selling and 99,500
administrative 7 110,000 156,000 179,000 578,000
Equipment 133,000
purchases 60,000 40,000 30,000 150,000
Dividends 10,000 10,000 10,000 20,000 40,000
Total disbursements 421,940.75 645,269.25 724,705 10,000 2,325,974
Excess(deficiency) of cash 534,058.5
available over disbursements (86,590.75) 22,940 286,884.5 310,526
Financing: 440,526
Borrowings(at the
beginning of
quarters) 120,000 10,000 130,000
Repayments(at
end of the year) (130,000)
Interest (130,000) (15,300)
Total financing 120,000 10,000 _ (15,300) (15,300)
Cash balance, ending Tk. 33,409.25 Tk. 32,940 Tk. 286,884.5 (145,300) Tk. 2,950,226
Tk. 2,950,226
 Schedule 9
Budgeted Income Statement
For the Year Ended December 31, 2013
Particulars Schedules Tk.
Sales 1 2,645,000
Cost of goods sold 1,6 1,948,100
Gross margin 696,900
Selling & administrative expenses 7 626,000
Net operating Income 70,900
Interest expense 8 15,300
Net Income Tk. 55,600

Note: Cost of goods sold=115,00016.94=1,948,100

 Schedule 10 Budgeted Balance Sheet
December 31, 2013
Assets
Current assets :
Cash 46,700
A/C Receivable 103,500
Raw materials inventory 10,560
Finished goods inventory 37,740
Total current assets 198,500
Plant & equipment:
Land 100,000
Buildings & equipment 600,000
Accumulated depreciation (122,000)
Plant & equipment, net 578,000
Total assets Tk. 776,500
Liabilities & Stockholders Equity
Current liabilities: 29,650
A/C payable (raw materials)
Stockholders equity:
Common stock 300,000
Retained earnings 446,850
Total stockholders equity 746,850
Total liabilities & stockholders equity Tk. 776,500
 Variance Analysis Direct Material

Actual quantity of input, Actual quantity of input Standard quantity

at actual price(AQ*AP) at Standard price allowed for actual output
(AQ*SP) at standard
(1) (2) price(SQ*SP), (3)
1750000 pounds* .25 1750000 pounds*.30 1700000 pounds *.30
per pound= Tk. 437500 per pound=Tk. 525000 per pound=Tk. 510000

Price variance=87500 F Quantity variance=15000 U

Total variance=72,500 F
 Variance Analysis Direct Labor

(1) (2) (3)

Actual hours of input at Actual hours of input at Standard hours allowed
the actual rate, TK., the standard rate, for actual output at the
(AH*AR), (AH*SR) standard price ,(SH*SR)

35000 hours*13 per 35000 hours*15per 30000 hours*15 per

hour=tk.455000 hour=tk.525000 hour=450000

Rate variance=70000 F Efficiency variance=75000 U

Total variance=5000 U
 Variance Analysis
Variable Manufacturing Overhead

Actual hours of Actual hours of Standard hours

input at the actual rate , input at the standard allowed for actual output
(AH*AR) ,TK., rate,(AH*SR) at the standard rate
(1) (2) (SH*SR) (3)
35000 hours*3 per 35000 hours *4 per 30000 hours*4 per
hour=105000 hour=140000 hour =120000

Rate variance=35000 F Efficiency variance=20000 U

Total variance=15,000 F
 Findings

At the completion of our master budget now we

can stand at a point that a master budget gives a
big scenario of organizations future operation to
financial manager .