(10) la. Given the information that follows, prepare a cash budget for the XYZ Store for the first six months of 2017. .All prices and costs remain constant Sales are 86% for credit and 14% for cash. delete d month, and 25% With respect to credit sales, 45% are collected in the month after the sale, 30% in the in the third. Bad-debt losses are insignificant. . Sales, actual and estimated, are ( for actual sales): March 2017 April 2017 May 2017 June 2017 July 2017 October 2016 $285,000 November 2016 310,000 2016 300,000* 250,000 300,000 $340,000 300,000 375.000 280,000 370,000 January 2017 February 2017 shift Merchandises are purchased one month before the anticipated sales at 76% (COGS). Assume all purchases month after placing arrived in the same month of ordering, and the company will pay the purchase exactly I the order fn . Wages and salaries are: January 2017 February 2017 March 2017 $40,000 45,000 50,000 April 2017 May 2017 June 2017 $65,000 55,000 52,000 . Rent is $7,000 a t of $50,000 for 2017 income is due in April . A capital investment of $80,000 is planned in June, to be paid for then. . The has a cash balance of $100,000 at December 31, 2016, which is the minimum desired level for cash. Funds can be borrowed in multiples of s10,000. (Ignore interest on such borrowings) (5) lb. Use the cash budget worked out in Part (a) and the following additional information to prepare a forecast income statement for the first half of 2016 for the XYZ Store. (Note that the store maintains a safety stock of inventory.) Inventory at 12/31/16 was $180,000. is taken on a straight-line basis on $240,000 of assets with an average remaining life of 10 years and no salvage value. The tax rate is 34 percent. Given the following information and that contained in Parts (a) and (b), construct a forecast balance sheet as of June 30, 2017, for the XYZ Store (5) lc. XYZ Store balance sheet at December 31, 2016 ASSETS LIABILITIES AND EQUITY Cash Accounts receivable Inventory Fixed assets, net $100,000 427,500 180,000 Accounts payable Bonds Common stock and retained earnings $100,000 500,000