Budgeting Case Study Worksheet
📘 CASE 1: Milktea Business – “Sweet Sips by Sam”
Context: Sam, a Grade 12 student from General Santos, started a small milk tea
business near their school. She wants to plan her finances for August to October.
📊 Given Data:
Selling Price: ₱80 per cup
Forecasted Sales in Units:
o August: 500
o September: 600
o October: 700
Beginning Inventory (August): 50 cups
Desired Ending Inventory: 10% of next month’s sales
Cost per Unit to Produce: ₱40
Monthly Fixed Expenses: ₱10,000 (rent, labor, electricity)
Variable Expenses: 10% of total sales
Beginning Cash (August): ₱15,000
Collections from Sales:
o 80% collected in the same month
o 20% collected the following month
📝 Task:
Prepare Sales, Production, and Cash Budgets for August to October.
📘 CASE 2: Ukay-Ukay Online Seller – “Thrifty Finds PH”
Context: A group of students runs an online ukay-ukay business on Facebook
Marketplace. They're projecting earnings for the Ber months.
📊 Given Data:
Selling Price: ₱150 per clothing item
Sales Forecast (units):
o September: 300
o October: 400
o November: 500
Beginning Inventory (September): 40 units
Desired Ending Inventory: 20% of next month’s sales
Purchase Cost per Item: ₱70
Shipping & Marketing Costs: 15% of sales
Fixed Costs: ₱5,000/month (storage, internet, packaging)
Collections from Customers:
o 70% in the month of sale
o 30% in the following month
Beginning Cash: ₱8,000
📝 Task:
Create Sales, Production (purchasing), and Cash Budgets for September to November.
📘 CASE 3: Homemade T-Shirt Printing – “TeeTayo”
Context: A creative ABM student launched a custom shirt printing business in time for
school events and reunions in Cavite.
📊 Given Data:
Selling Price: ₱200 per shirt
Expected Orders:
o July: 100
o August: 150
o September: 180
Beginning Inventory (July): 30 shirts
Desired Ending Inventory: 15% of next month’s sales
Production Cost per Shirt: ₱90
Marketing and Admin Cost: 12% of sales
Monthly Fixed Expenses: ₱6,000
Collection Policy:
o 75% paid upfront
o 25% paid one month later
Beginning Cash (July): ₱10,000
📝 Task:
Make the Sales, Production, and Cash Budgets for July to September.
✅ Suggested Deliverables:
Each group should:
Present the 3 types of budgets
Explain their computation and assumptions
Discuss whether their cash flow is healthy or needs improvement
CASE 1: Sweet Sips by Sam (Milk Tea Business)
1. Sales Budget
Month Units Sold Sales Revenue (₱) Variable Expense
(₱)
August 500 40,000.00 4,000.00
September 600 48,000.00 4,800.00
October 700 56,000.00 5,600.00
2. Production Budget
Month Sales Units Desired Ending Beginning Production
Inventory Inventory Required
August 500 60 50 510
September 600 70 60 610
October 700 0 70 630
3. Cash Budget
Month Beginning Cash Inflows Cash Ending Cash Remarks
Cash (₱) (₱) Outflows (₱) (₱)
August 15,000.00 32,000.00 34,400.00 12,600.00 Needs
Attention
September 12,600.00 46,400.00 39,200.00 19,800.00 Profitable
October 19,800.00 54,400.00 40,800.00 33,400.00 Profitable
CASE 2: Thrifty Finds PH (Ukay-Ukay Business)
1. Sales Budget
Month Units Sold Sales Revenue (₱) Variable Expense
(₱)
September 300 45,000.00 6,750.00
October 400 60,000.00 9,000.00
November 500 75,000.00 11,250.00
2. Production Budget
Month Sales Units Desired Ending Beginning Production
Inventory Inventory Required
September 300 80 40 340
October 400 100 80 420
November 500 0 100 400
3. Cash Budget
Month Beginning Cash Inflows Cash Ending Cash Remarks
Cash (₱) (₱) Outflows (₱) (₱)
September 8,000.00 31,500.00 35,550.00 3,950.00 Needs
Attention
October 3,950.00 55,500.00 43,400.00 16,050.00 Profitable
November 16,050.00 70,500.00 44,250.00 42,300.00 Profitable
CASE 3: TeeTayo (T-Shirt Printing)
1. Sales Budget
Month Units Sold Sales Revenue (₱) Variable Expense
(₱)
July 100 20,000.00 2,400.00
August 150 30,000.00 3,600.00
September 180 36,000.00 4,320.00
2. Production Budget
Month Sales Units Desired Ending Beginning Production
Inventory Inventory Required
July 100 23 30 93
August 150 27 23 154
September 180 0 27 153
3. Cash Budget
Month Beginning Cash Inflows Cash Ending Cash Remarks
Cash (₱) (₱) Outflows (₱) (₱)
July 10,000.00 15,000.00 16,770.00 8,230.00 Needs
Attention
August 8,230.00 27,500.00 23,460.00 12,270.00 Profitable
September 12,270.00 34,500.00 24,090.00 22,680.00 Profitable
🧠 Interpretation Case 1:
Sam's business is growing in sales, and production keeps up by maintaining 10%
inventory.
Although cash outflows exceed inflows in August, the business bounces back by
September and October with positive cash flow.
Ending cash grows monthly, indicating good planning and collection strategy
(80% current, 20% delayed).
🧠 Interpretation Case 2:
September shows a deficit, but the business recovers strongly in October and
November.
High production cost (₱70 per unit) impacts early cash flow.
Effective inventory control (20% of next month) helps manage supply while
avoiding overstocking.
Business becomes highly profitable by November with an ending cash balance of
₱42,300.
Interpretation Case 3:
The business starts strong with moderate profits despite production cost of ₱90
per shirt.
By September, cash grows to ₱22,680, showing effective pricing and collection
strategy.
Inventory planning (15% of next month) ensures no stockouts and controls cost.
Gradual increase in sales and collections shows steady business growth.