Based on your answer to question 11, construct a first-quarter 2018 cash flow forecast for Westmark Industrial.

Data from Prob. 11

Continuing problem 10, Westmark Industrial’s annual income statement and balance sheet for December 31, 2017, are shown next. Additional information about the company’s accounting methods and the treasurer’s expectations for the first quarter of 2018 appear in the footnotes.

                           Income Statement
January 1, 2017 to December 31, 2017 ($ thousands)    
Net sales ...............................................................   $6,000
   Cost of goods sold¹ ...........................................    3,900
Gross profits ........................................................     2,100
   Selling and administrative expenses² ..............  1,620
   Interest expense .................................................       90
   Depreciation³ ........................................................     90
Net profit before tax ............................................      300
   Tax (33%) ...............................................................     99
Net profit after tax $ ...........................................       201

                                Balance Sheet
             December 31, 2017 ($ thousands)
Assets
Cash ......................................................................    $ 300
Accounts receivable ............................................       960
Inventory .............................................................     1,800
   Total current assets ........................................     3,060
Gross fixed assets .............................................         900
   Accumulated depreciation ............................        150
Net fixed assets .................................................        750
   Total assets .....................................................   $3,810
Liabilities
Bank loan ...........................................................          $ 0
Accounts payable ..............................................     1,740
Miscellaneous accruals⁴ ...................................          60
Current portion long-term debt⁵ .....................       210
Taxes payable .....................................................      300
Total current liabilities .......................................   2,310
Long-term debt ...................................................     990
Shareholders’ equity ..........................................      510
Total liabilities and equity ................................. $3,810

1 Cost of goods sold consists entirely of items purchased in first quarter.
2 Selling and administrative expenses consist entirely of wages.
3 Depreciation is at the rate of $30,000 per quarter.
4 Miscellaneous accruals are not expected to change in the first quarter.
5 $210 due in March 2018. No payments for remainder of year.