Candy Jones, owner of$,$ the Carmel Corn Shop needs your help,

preparing the budget for the busy summer season. The following

is what she and her management team anticipates for June, July

and August $2024.$

Since most of their sales are to tourists, their marketing will focus

on printed info cards, distributed at hotels. To stock the hotels, they will need $$1,000$ of cards in June, $$700$ in July and

$$500$ in August. They have an account with the printer so they will be able to pay for this in the month following

distribution.

Due to increased tourism projections and the addition of some corporate customers $($who have credit$),$ Candy anticipates

that sales will be stronger than last year. Here are the sales projections in units

Big bags of caramel corn sell for $$12$ each and small bags sell for $$9$ each;

$95\%$ of customers will pay cash. $5\%$ of sales are to corporate clients who will pay in the month following the sale.

The cost of the popcorn and other caramel ingredients that go into every bag is equal to $20\%$ of sales revenue. The

inventory coming into this period will need not be enough so we will need to restock. As such, we plan to purchase

$$15,000$ of these goods in August and pay in August.

Insurance expires at $$200$ per month. Candy is happy that she has already paid for this cost.

Store rent is $$8,000$ per month and is paid at the $1^{st}$ of each month.

Deprecation on the current store equipment is $$1000$ per month.

Candy has $2$ store managers and hourly workers. Total cost for wages are expected to be $$14,000$ in June, $$16,000$ in July

and $$14,000$ in August. Wages are paid in the month worked.

By the time June comes, the Carmel Corn Shop will already have a $$10,000$ loan. This loan incurs interest of $6\%.$ Interest

and principle will be paid January $1,2025.$

The store's equipment is getting old and this will be a busy summer. Therefore, they plan to buy equipment costing

$$7,000$ in July. This equipment is expected to last $5$ years, then be sold for $1,900$

A $$10,000$ dividend will be paid at the end of August.

Create Pro forma balance sheet and cash budget