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Pack-Its

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ACCT 610 – Financial Accounting
Dr. Mike Kinney
PACK-iTS

Presented By
Brian Klute

Analytics
“On my honor, as an Aggie, I have neither given nor received unauthorized aid on this academic work.”
Houston, TX
July 20, 2015

Texas A&M University Analytics Program

Case Analysis | Pack-Its

1. A monthly cash budget from August 2008 through July 2009.
Cash budget
Beginning cash
Cash collections
Cash available
Disbursements:
Asset Outflows
Owner Withdrawals
Cost of Goods Sold
Operating expenses
Ending cash

Aug-08
$ 25,000
$
$ 25,000

Sep-08
$
$ 23,598
$ 23,598

Oct-08
$ 1,123
$ 58,996
$ 60,119

Nov-08
$ 14,888
$ 47,197
$ 62,085

$
$
$

Dec-08
24,439
35,398
59,837

Jan-09
$ 29,776
$ 47,197
$ 76,973

Feb-09
$ 39,327
$ 47,197
$ 86,524

$
$
$

Mar-09
48,878
47,197
96,075

$ 18,095
$
$
$ 6,905
$
-

$
$ 3,600
$ 13,966
$ 4,909
$ 1,123

$
$
$
$
$

$
$ 3,600
$ 27,933
$ 6,113
$ 24,439

$
$
$
$
$

3,600
20,950
5,511
29,776

$
$ 3,600
$ 27,933
$ 6,113
$ 39,327

$
$ 3,600
$ 27,933
$ 6,113
$ 48,878

$
$
$
$
$

3,600
27,933
6,113
58,429

3,600
34,916
6,715
14,888

Apr-09
$ 58,429
$ 58,996
$ 117,425

May-09
$ 72,194
$ 47,197
$ 119,391

Jun-09
$ 81,745
$ 35,398
$ 117,143

$
$
$

Jul-09
87,467
87,467

$
$
$
$
$

$
$
$
$
$

$
$
$
$
$

$
$
$
$
$

3,320
84,147

3,600
34,916
6,715
72,194

3,600
27,933
6,113
81,745

3,600
20,950
5,126
87,467

Assumption: collect in the same month as revenue earned minus uncollectibles. Delay is the processing time for an individual check. Payments on credit included in the month of payment, not the month incurred.

2. A pro forma income statement for the period from August 2008 through July 2009.
Pro Forma Income Statement
Sales Revenue
Cost of goods Sold
Gross Profit
Operating expenses:
Building Rent
Bad Debts (2%)
Leased Van
Telephone/Internet
Utilities
Insurance
Packaging Inventory
Cleaning/Office Supplies
Marketing
Banking Fees
Order Forms
School

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