Appendix

Cash Budget with Related Schedules,

and Budgeted Financial Statement Analysis

Society Clothing Corporation
Budgeted Statement of Financial Position
December 31, 1997

Cash P 20,000.00
Marketable Securities 124,998.23
Accounts Receivable 470,000.00
Materials Inventory 202,800.00
Finished Goods Inventory 166,400.00
Net Fixed Assets 120,000.00
Total Assets P 1,104,198.23

Accounts Payable P 85,800.00
Loans Payable 272,482.84
Common Stock 500,000.00
Retained Earnings 245,915.39
Total Liabilities and Stockholders Equity P 1,104,198.23




Society Clothing Corporation
Budgeted Income Statement
For the Year Ended December 31, 2014
Sales P 2,080,000
Less: Cost of Sales (1,664,000)
Gross Profit P 416,000
Less: Operating Expenses
Variable P 104,000
Fixed 180,000 (284,000)
Net Income P 132,000








Ratio Analysis
1996 1997
Liquidity Ratios
Current Ratio 6.35 11.47
Quick Ratio 2.34 7.17
Inventory Turnover 3.47 4.84
Average collection period (in days) 40.15 82.48
Total Asset Turnover 2.21 1.14

Solvency Ratio
Debt Ratio 0.12 0.32

Profitability Ratio
Gross Profit 20% 20%
Gross Margin 2% 6%
Return on Common Stockholders Equity 7.8% 26%
Return on Total Assets 5% 12%