8.

9.

10. Based on your answer to question 9, construct a first quarter 2015 cash flow forecast for Westmark industrial. Please provide formulas so i know how to solve for. TY!

2014 Actual 2015 Forecast October November December January February March Sales $ 360 $ 420 $ 1,200 $ 600 $ 240 S 240 Purchase $ 510 $ 540 $ 1,200 $ 300 $ 120 $ 120 Wages payable monthly $ 180 principle payment on debt due in march $ 210 interest due in march 90 dividends payable in march $ 300 taxes payble in feb $ 180 addition to accumulated dep in march $ 30 cash balance on Jan 1 2015 $ 300 mini desured cash balacne S 150 20% Monthly sales collected in cash credit sales (collected in one month) Payables on credit (paid in two months) 80% 100% Feb March Jan Cash Rec: Sales for Cash $ Collections from credit s $ Total Cash rec 120 $ 960 $ 1080 48 $ 480 $ 528 48 192 240 300 180 Cash Disbursments: Payment for purchases $ Wages $ Principal payments $ interest payments $ dividends $ Tax payments Total Cash Disbursements $ 540 $ 180 $ $ $ $ $ 720 $ 1,200 $ 180 $ $ $ S 210 90 300 180 $ 1,560 $ 1,080 Net Cash receipts (disburs $ 360 $ (1,032) $ (840) Determination of cash needs: Beg cash $ Net receipts (disbursements $ Ending Cash $ Min Cash desired $ Cash surplus (deficit) 300 $ 660 $ (372) 360 $ (1,032) $ (840) 660 $ (372) $ (1,212) 150 $ 150 $ 150 510 S (522) $ (1,362) Income Statement January 1, 2014 to December 31, 2014 ($thousands) Net sales Cost of goods sold' Gross profits Selling and administrative expenses? Interest expense Depreciation Net profit before tax Tax (33%) Net profit after tax $6,000 3,900 2,100 1,620 90 90 300 99 $ 201 Balance Sheet December 31, 2014 ($thousands) Assets Cash Accounts receivable Inventory Total current assets Gross fixed assets Accumulated depreciation Net fixed assets Total assets $ 300 960 1,800 3,060 900 150 750 $3,810 a. Use this information and the information in problem 8 to construct a pro forma income statement for the first quarter of 2015 and a pro forma balance sheet for March 31, 2015. What is your estimated external financing need for March 31? b. Does the March 31, 2015, estimated external financing equal your cash surplus (deficit) for this date from your cash budget in problem 8? Should it? C. Do your pro forma forecasts tell you more than your cash budget does about Westmark's financial prospects? d. What do your pro forma income statement and balance sheet tell you about Westmark's need for external financing on February 28, 2015