- + 100% Gordie's Hockey Supply Company - Monthly Proforma and Cash Budget 2019 sales are forecasted to be $52,500. . See Table 1 for the estimated percentage distribution of purchases and sales. Total purchases for 2019 are forecasted to be $43,500. COGS for 2019 are forecasted to be 82 percent of 2019 forecasted sales. Operating expenses (excluding depreciation) will be 12 percent of 2019 forecasted sales and are expected to be evenly distributed throughout the year. Depreciation expense on existing fixed assets will be $15 per month The company plans to spend $1936 on new long-term assets in August 2019. These new assets will be depreciated on a straight-line basis to a $400 salvage value over 8 years. Depreciation on these new assets will be divided evenly per month and the first monthly depreciation on these new assets will occur in September. Seventy-five percent (75%) of the cost of the new fixed assets will be financed by an increase in the long-term mortgage loan (taken out in August). The firm's average tax rate is 32 percent. Twenty percent (20%) of all sales are cash sales (1.e., collected immediately) and eighty percent (80%) of all sales are credit sales. There is no bad debt (i.e., all credit sales are collected). The average collection period (ACP) was 45 days for all of 2018 and will be 45 days for all of 2019. November 2018 sales were $6,300 and December 2018 sales were $7,350. Assume sales are evenly distributed throughout each month. The accounts payable days period was 15 days for all of 2018 and will be 15 days for all of 2019. December 2018 purchases were $3,400. Assume purchases are evenly distributed throughout each month. Tax payments of $288 will be made in March, June, September, and December. Also, the $90 deferred tax balance on the 2018 Balance sheet will be paid in April. A long-term debt repayment of $85 will be made in October. The minimum cash balance is $125. The company plans to sell $40 in stock (via an employee stock plan) every month. The only change in the deferred tax account will be due to accrued taxes. The company plans to pay a $200 dividend payment to shareholders in May 2019 and another ent in November 2019 $200 dividend payment in Nov The interest rate on the bank loan (i.e., on short term debt) is 7.5% annually and the interest rate on long-term debt (i.e., the mortgage loan) is 8.5% annually. This interest rate is paid on the prior month's total loans balance (short-term plus long-term). Thus, given that the Bank loan balance on December 31, 2018 is $2,915 and the Mortgage loan balance on December 31, 2018 is $7,450, the interest paid in the month of January will be (.07/12)(2915) + (.09/12)(7450) = 72.88 = 73