Complete Financial Budget and Pro Forma Balance Sheet for XYZ Company

XYZ Company Pro Forma Income Statement Quarter Ending December 31, 2021 XYZ Company Pro Forma Balance Sheet December 31, 2021 XYZ Company Sales Budget For October, November and December 2021 Assumptions September Sales =$68,000 October Sales are 2% higher than September November Sales are 1% higher than October December Sales are 2.5% higher than November XYZ Company Cost of Goods Sold Budget For October, November and December 2021 Assumptions: Cost of Goods Sold =60% of Sales September Ending Inventory =$42,000 Desired Ending Inventory =$15,000+70% of the Cost of Goods Sold for Current Month XYZ Company Operating Expense Budget For October, November and December 2021 Assumptions: Salaries Expense =15% of Sales Depreciation Expense =$2,000 per month Other Operating Expenses =10% of Sales XYZ Company Cash Collections Budget For October, November and December 2021 Assumptions: Credit Sales Collections =45% of previous months sales. Remaining 55% deferred. September Credit Sales =$41,000 XYZ Company Cash Payments for Inventory Budget For October, November and December 2021 September Purchases =$35,000 XYZ Company Payment for Operating Expense Budget For October, November and December 2021 Assumptions: Operating Expenses paid in Current Month Assumptions: September's Ending Cash Balance was $30,000 Note Payable for $30,000 issued on December 31, 2013 Desired Edning Cash Balance =$5,000 Information for Pro Forma Balance Sheet Beginning Accounts Receivable =$41,000 Equipment, net =$47,961 Ending Accounts Payable =$91,092 Common Stock =$31,843 Retained Earnings =$75,000 XYZ Company Pro Forma Income Statement Quarter Ending December 31, 2021 XYZ Company Pro Forma Balance Sheet December 31, 2021 XYZ Company Sales Budget For October, November and December 2021 Assumptions September Sales =$68,000 October Sales are 2% higher than September November Sales are 1% higher than October December Sales are 2.5% higher than November XYZ Company Cost of Goods Sold Budget For October, November and December 2021 Assumptions: Cost of Goods Sold =60% of Sales September Ending Inventory =$42,000 Desired Ending Inventory =$15,000+70% of the Cost of Goods Sold for Current Month XYZ Company Operating Expense Budget For October, November and December 2021 Assumptions: Salaries Expense =15% of Sales Depreciation Expense =$2,000 per month Other Operating Expenses =10% of Sales XYZ Company Cash Collections Budget For October, November and December 2021 Assumptions: Credit Sales Collections =45% of previous months sales. Remaining 55% deferred. September Credit Sales =$41,000 XYZ Company Cash Payments for Inventory Budget For October, November and December 2021 September Purchases =$35,000 XYZ Company Payment for Operating Expense Budget For October, November and December 2021 Assumptions: Operating Expenses paid in Current Month Assumptions: September's Ending Cash Balance was $30,000 Note Payable for $30,000 issued on December 31, 2013 Desired Edning Cash Balance =$5,000 Information for Pro Forma Balance Sheet Beginning Accounts Receivable =$41,000 Equipment, net =$47,961 Ending Accounts Payable =$91,092 Common Stock =$31,843 Retained Earnings =$75,000