PLAYTIMECOMPANY

SCHEDULEOFINVENTORY
1991
(A)
Month
January
February
March
April
May
June
July
August
September
October
November
December

(B)

(C)

(D)

Beginning
Balance

CostofFinished
GoodsCompleted(a)

Costof
Goodssold(b)

Ending
Balance

$530
948
1,355
1,749
2,157
2,564
2,971
3,365
2,904
2,314
1,549
697

$489
489
489
489
489
489
489
489
489
489
489
489
$5,865

$70
82
94
81
81
81
94
950
1,079
1,254
1,340
656
$5,865

$948
1,355
1,749
2,157
2,564
2,971
3,365
2,904
2,314
1,549
697
530

Notes:
(a)TotalCostofGoodSoldunderlevelproductiondividedinto12months.
(b)MonthlyCOGSat65.1667%ofsales,reflectingthe$435,000laborsavings

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PLAY TIME TOY COMPANY

CASH BUDGET UNDER LEVEL PRODUCTION

1991 ($ OOOs)

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

$1,778

$850

$108

$126

$145

$125

$125

$125

$145

255

225
0

225
80

225

225

225

225

225

225
32

225

31

225
31

225
32

0
197

0
199

25

20Jl

0
198

25
190

264

264

264

264

0
195
264

0
191

264

203
264

0
201

264

264

Oct.

Nov.

Dec.

Cash Inflows:

ColIection of AI

$1,458 $1,655 $1,925

Cash Outflows:

Payment of Al
Tax Payments

Repayment of

Operating Expenses

0
192

Wages

264

194
264

0
196
264

Total

$711

$683

$764

$717

$688

$746

$691

$689

$719

$683

$680

$736

Net Inflow (Outflow)

1,067
175

167
562

(656)
730

(591)
175

(543)
175

(621)
175

(566)
175

(564)
175

(574)
175

775
175

975
175

1,189
175

1,242

730

73

(416)

(368)

(446)

(391)

(389)

(399)

950

1,150

1,364

175

175

175

175

175

175

175

175

175

175

175

175

-680
0
$562

0
0
$730

102
102

591
693
$175

543
1,236
$175

621
1,856
$175

566
2,423
$175

564
2,987
$175

574
3,561
$175

(775)
2,786
$175

(975)
1,811

(1,189)
622
$175

Long-term debt

Beginning Cash
Ending Cash before
any Loan Incr. Deer.

Desired Cash Balance

Loan (Repayment)

Increase
End-of-month Loan

End-of-month Cash

$175

$175

_W__N ..NQv~90 Dec~90 Ji~9fNteb~9rMar~91A.2ra91Maya9I;.~~:~~~iil~9i Au.ga~Sepa91 Octa91 Nova91 Dec-91

MQllthly

Sales $1.,778 $850 $108 $126 $145 $125 $125 $125 $145 $1,458 $1,655 $1,925 $2,057 $1,006

AI
Ending
Balance (a)

$2,628 $958 $234 $271 $270 $250 $250 $270 $1,603 $3,113 $3,580 $3,982 $3,063

Cash

Infows

$1,778 $850 $108 $126 $145 $125 $125 $125 $145 $1,458 $1,655 $1,925

Notes:

(a) Assumed a 60aday collection period.

PLAY TIME TOY COMPANY

CASH BUDGET UNDER LEVEL PRODUCTION

1991 ($ OOOs)

June

July

Jan.

Feb.

Mar.

($102)

($99)

($96)

(Inc.) Deer. AI

1,670

724

(37)

20

(20)

(Ine.)Deer. Inventory

(418)

(407)

(394)

(407)

(407)

(407)

(394)

461

Inc. (Deer.) NP

(30)

Inc. (Deer.) Accr. Tax

(53)

(51)

(129)

(83)

(53)

(84)

Inc. (Deer.) L-T Debt

(25)

Net

Income

Net Inc. (Deer) in Cash $1,067 $167

Apr.

May

Aug.

Sept.

Oct.

Nov.

Dec.

$203

$250

$314

$347

$106

(467)

(402)

919

590

766

852

167

(52)

104

97

162

179

22

(25)

($564)

($574)

$775

$975

$1,189

175

175

175

175

175

($399)

$950

175
574
3,561
$175

175
(775)
2,786

($102) ($103) ($104) ($100)

($656) ($591) ($543) ($621) ($566)

(1,333) (1,510)

175
562
Beginning Cash
Ending Cash before
any Loan Inc. or Rep. $1,242 $730

730
$73

($416) ($368) ($446) ($391) ($389)

Desired Cash Balance

175
0
0

175
102
102

$730

$175

175
591
693
$175

175

Loan (Repayment) Inc. (680)

0
End of Month Loan
Month Cash . $562

End of

175

175

175
543
1,236
$175

175

175

175
621
1,856

175
566
2,423

$175

$175

175
564
2,987
$175

$175

$1,150 $1,364

175
(975)
1,811
$175

175
(1,189)
622
$175

PLAY TIME TOY COMPANY

PRO FORMA BALANCE SHEET UNDER LEVEL PRODUCTION

1991 ($ OOOs)

Actual
Assets
Cash
Accounts Receivable (a

Inventory (b)
Current Assets

Net Plant & Equip.

Total Assets

Dec-9O

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

$175
530

$562
958
948

$730
234
1,355

$175
271
1,749

$175
270
2,157

$175
250
2,564

$175
250
2,971

$175
270
3,365

$175
1,603
2,904

$75
3,113
2,314

$175
3,580
1,549

$175
3,982
697

$175
3,063
530

3,333
1,070

2,469
1,070

2,319
1,070

2,195
1,070

2,602
1,070

2,989
1,070

3,396
1,070

3,810
1,070

4,682
1,070

5,602
1,070

5,304
1,070

4,854
1,070

3,768
1,070

2,628

$4,403 $3,539 $3,389 $3,265 $3,672 $4,059 $4,466 $4,880

$5,752 $6,672 $6,374 $5,924 $4,838

Liabilities & Net Worth

Accounts Payable (c)
Notes Payable (d)
Accrued Taxes (e)

(24)

225
102
(153)

225
693
(236)

225
1,236
(289)

225
1,856
(374)

225
2,423
(425)

225
2,987
(321)

225
3,561
(224)

225
2,786
(62)

225
1,811
116

225
622
139

50
302

50
251

50
224

50
732

50
1,222

50
1,758

.50
2,272

50
2,941

50
3,612

50
2,999

50
2,202

50
1,036

400
2,836

400
2,737

400
2,641

400
2,540

400
2,437

375
2,333

375
2,233

375
2,436

375
2,686

375
3,000

375
3,346

350
3,452

255
680
80

225

225

27

50
1,065

Long-term debt
Current Portion (0

Current Liabilities

400
Long-term Debt
Shareholders'Equity (h 2,938

Total Liabilities
&

Equity

$4,403 $3,539 $3,389 $3,265 $3,672 ,$41959 $4,466 $4,880

$5,752 $6,672 $6,374 $5,924 $4,838

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