a$.$ Create a Cash Budget for the months April through June with the information given below.

b$.$ Create a Pro forma Income Statement and Balance Sheet for the same period.

Sales are shown in the table below:

Month Sales

February $$10,000$

March $$73,500$

April $$65,000$

May $$75,000$

June $$85,000$

July $$90,000$

$$ Sales are $29\%$ cash and $70\%$ credit, $1\%$ bad debt

$$ Of the credit sales, $50\%$ are collected in the month following the sale, and $50\%$ are collected two months following the sale.

$$ Cost of Goods Sold is strictly materials and is $55\%$ of sales.

$$ All inventory $($material$)$ purchases are paid for one month after they are made.

$$ The store follows a policy of purchasing enough inventory one month in advance of sales.

$$ A minimum cash balance of $$8,000$ is desired.

$$ All $$Accrued Wages$$ and $$Other Current Liabilities$$ remain unchanged. Wages April through June are paid as incurred.

$$ The corporate tax rate is $35\%.$ No tax payments are due during this quarter.

$$ A $$6,000$ dividend payment will be made in April.

Balance Sheet March $31$st

Cash $$10,000$ A$/$P $$35,750$

A$/$R $$54,950$ Accrued Wages $$15,000$

Inventory $$47,560$ Other Current Liabilities $$10,000$

Total Current Assets $$112,510$ Common Stock $$26,950$

Fixed Assets $$19,000$ Retained Earnings $$37,810$

Accumulated Depreciation $$(6000)$ Total Liabilities & OE $$125,510$

Total Assets $$125,510$

Monthly expenses are below:

Wages: April $$1500$ May $$1700$ June $$1800$

Rent: $700$ per month

Depreciation: $150$ per month

Administrative expenses: $3\%$ of sales per month paid as incurred.