3- Based on the following information and set of policies, by using Sales Forecasting Method; a- Calculate the forecast basis for assets and current liabilities b- Calculate the amount of Financing Required (capital deficit) c- Prepare the Pro-Forma Balance Sheet Giro Sport Designs 2018 sales are recorded as 600.000 USD. Company directors forecast new sales record as 1.200.000 USD in 2019. Directors plan to increase the capacity by investing on new Plants and Equipment to achieve this new target. Board Policies: 1- Gross Plant & Equipment Depreciation ratio is accepted as %20. 2- All assets in the balance sheet will increase at the same rate as sales increase. 3- All Current Liabilities in the balance sheet will increase at the same rate as sales. 4- 100.000 additional Long Term Bonds will take place in 2019. 5- For long term capital: a- 50.000 new preferred stocks will be issued b- A long term loan will be activated as 150.000 USD b- Additional New stocks will be issued at 200.000 USD 6- Net Profitability is %20 of total sales. 7- %30 of Net Profit will be distributed as dividends 8- Remaining %70 of Net Profit will be retained in the company Based on 2019s projected sales; Based on the following assumptions and policies ; a) Prepare the budget for Collectables from Sales! b) Prepare the budget for Purchases! c) Prepare the budget of Cash Payment for Purchases! d) Set the companys Cash Budget for 2021 BOARD Policies & Assumptions - Companys projected sales for the three months as followings: Sales Forecast for 2021 January 2021 200.000 USD February 2021 220.000 USD March 2021 240.000 USD - All Sales are credited: %40 of sales are collected as in form of cash. %30 of sales are credited for 1 month and %30 of it for the next month. Rule: 40;30;30 - Accounts Receivables by quarter ending 31/12/2020 amounted to 120.000 USD a) 30.000 USD of Account Receivables belong to November Sales ( 11/2020) b) 90.000 USD of Account Receivables belong to December Sales ( 12/2020) - All purchases are credited: %50 of purchases are paid in advance and %50 of purchases are debited - Projected Inventories by the end of months are as followings: Projected Inventories by the end of Month December 2020 72.500 USD January 2021 75.000 USD February 2021 77.500 USD March 2021 90.000 USD - by the last quarter ( 31/12/2020), Companys Accounts payable amounted to 50.000 USD - Cash Balance amounted to 60.000 USD -Monthly Fixed Operating Expenses are equal to the %20 of monthly sales. - Required Cash Balance for each month is set as 25.000 USD Company will issue new stocks amounted to 10.000 USD in January, 20.000 USD in February and new bonds amounted to 30.000 in March - Company will purchase a machine in January for 50.000 USD for equal 5 installments - Net Profit is equal to the %25 of Sales