After you calculate 2012 forecasted income statement, you turn to the 2012 forecasted balance sheet Don't start w/ cash, start w/ inventory For inventory, you'll start with what was left in Dec 2011 - 1,227 - and add [0.60($18M)/12]. Then you'll subtract what is sold for each month - you'll get this from the net sales you forecast in the income statement. Accounts receivable isn't going to change from seasonal to level production. You'll calculate how much taxes are accrued each month but remember you only pay them four times a year; in April, June, September, and December For notes payable, it's X; we're going to have to do the same math we did in Gilbert Lumber to figure out how much money we need from the bank, i.e., "the plug" - it's going to be a really big number You need to look at net income to figure out what the "plug" is going to be and this will determine how much cash you'll have

Table A Consolidated Income Statement, 2009-2011 (in thousands of dollars) 200920102011 Net sales14,07915,06516,360 COGS9,01110,24410,798 Gross profit5,0684,8215,562 Operating expense3,5203,6154,090 Interest expense105125128 Interest income171915 Pretax profit1,4611,0991,359 Income tax497374462 Net income964725897