Part I: Decisions for Quarter One. Prior to working on your Decisions for Quarter One, review the following through the Growing Your Business simulation, the “Suggestions for Quarter 1” pop-up screen,
Quarterly Decisions
OM Levers
Current Decisions
Market Forecast as of Q1'21 (90% Confidence Level)
02,2504,5006,7509,000Q3.20Q4.20Q1.21Q2.21Q3.21Q4.212,0912,485
Financial Metrics – Plan and Actual+SRO *
| Plan | Actual+SRO | |
| Sales | $3,540,475.00 | $3,540,475.00 |
| Net Income | $240,970.08 | $240,970.08 |
| Cash Flow ** | ($91,852.19) | ($91,852.19) |
* Plan is annual commitment, SRO is Short Range Outlook and represents Decisions for Qtrs. To be played (the SRO may have changed from original plan for the Qtr.).
** Operating
Pre-Tax Income: Year Plan vs. Actual+SRO
$0$138.6K$277.1K$415.7K$554.2KYear PlanGrowthMarket SharePriceVC (I)VC (P)Base CostInterestActual+SRO$481.9K$0$0$0$0$0$0$0$481.9K
Q1'21 - Expected Pre-tax NI Walk
$-87.3K$-65.5K$-43.7K$-21.8K$0Q4'20 ActualGrowthMarket SharePriceVC (I)VC (P)Base CostInterestQ1'21 Expected$-72.2K$60.8K$-3.7K$0$-4.1K$-56.7K$37.7K$-5.1K$-43.3K
Q1'21 - Expected Cash Flow Walk
$-464.5K$-348.4K$-232.3K$-116.1K$0Beg Qtr Cash/DebtNet IncomeDepreciationReceivablesInventoryAPP&ECommon StockEnd Qtr Cash/Debt$-382.3K$-21.7K$0$37.8K$46.6K$0$0$0$-319.6K
Q1'21 - Expected OM Levers *
0%4%8%12%16%20%PriceVolumeVariable CostBase Cost Volume **Variable Cost ***
* All Ceteris Paribus
* Variable/Base Cost Improvements Imply Cost Reduction
** % Volume Increase Required To Maintain CM $ Facing a 1% Price Reduction
*** % Improvement (Decrease) Required To Maintain CM $ Facing a 1% Price Reduction
| Plan | Q4'20A | Q1'21 | Q2'21 | Q3'21 | Q4'21 |
| Sales | |||||
| Total Market Demand [Units] | 2,485 |
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| Lost Sales [Units] |
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| Units Sold [Units] | 829 |
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| Price [$] | $550.00 |
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| Terms [Days] | 60 |
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| Average Collection Period [Days] | 64.4 |
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| Production | |||||
| Raw Material On Order [Units] | 1,000 |
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| Units Produced [Units] | 1,166 |
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| Labor Force Hires [People] |
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| Labor Force Layoffs [People] |
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| Lines On Order [Units] |
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| Planned Time | 1.28 |
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| Effectiveness | 85.4% |
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| Discretionary Costs | |||||
| Quality Engineering Expense | $42,000.00 |
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| Research Funding Expense | $0.00 |
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| Project 01 Funding | $0.00 |
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| Project 02 Funding | $45,000.00 |
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| Project 03 Funding | $0.00 |
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| Inventory Rework Cost | $0.00 |
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| Marketing Expense | $41,000.00 |
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| Advertising Expense | $31,000.00 |
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| Lean Six Sigma Expense | $25,000.00 |
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| Building Lease and Utilities | $79,953.00 |
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| Reports | |||||
| Marketing Report |
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| Business Intelligence Dashboard |
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Guideline
Your Plan Net Income of $240,970 is outside the owner's expectation of $300k-$400k. Please adjust your Plan so Net Income falls within this range.
