D E F G B C D 1 2 3 4 Enterprise Tea Copany Pro Forma Balance Sheet 31-Dec-19 Assets 5 Vertical Analysis $85,000 $85,000 B 1 Enterprise Tea Company 2 Pro Forma Income Statemen 3 For Qurater Ended December 31, 2019 Vertical 4 Analysis 5 Sales $464,431 100.0% 6 Cost of Goods Sold $278,658 60.0% 7 Gross Profit $185,772 40.0% 8 Operating Expenses: 9 Salaries Expense $69,665 15.0% 10 Depreciation Expense $19,500 4.2% 11 Other Operating Expenses $55,732 12.0% 12 Total Expenses $144,896 31.2% 13 Net Income $40,876 8.8% 14 15 16 17 18 19 6 Cash 7 Accounts Receivable 8 Inventory 9 Equipment, net 10 Total Assets 11 Liabilities 12 Accounts Payable 13 Total Liabilities 14 Stockholders Equity 15 Common Stock 16 Retained Earnings 17 Total Stockholders Equity 18 Total Liabilities & Stockholders Equity 19 20 21 22 Beginning A/R=$20,000 23 Beginning A/P-$24,000 24 25 $131,376 $110,000 20 E F G F Enterprise Tea Company Sales Budget 4th Quarter 2019 D E 1 Enterprise Tea Company 2 Cost of Goods Sold Budget 3 4th Quarter 2019 4 5 October November December Total 6 Cost of Goods Sold (60%) $90,450 $92 259 $95,949 $278,658 7 Desired Ending Inventory $62,793 $63,968 $66,367 $193,128 8 Total Inventory Required $153,243 $156,227 $162,316 $471,786 9 Beginning Inventory ($50,000) ($62,793) (563,968) (5176,761) 10 Total Purchases Required $103,243 $93,435 $98,348 $295,025 Cash Sales (60%) Credit Sales (40%) Total Sales October November December Total $90,450 $92,259 $95,949 $278,658 $60,300 $61,506 $63,966 $185,772 $150,750 $153,765 $159,916 $464,431 12 September Sales=$150,000 October Sales expected to increase by .5% November Sales expected to increase by 2% December Sales expected to increase by 4% 13 14 15 16 17 18 D E F G A D F 1 B Enterprise Tea Company Operating Expense Budget 4th Quarter 2019 2 Enterprise Tea Company Collections Budget 4th Quarter 2019 3 4 5 October November Docambor Total 6 7 Cash Sales Credit Sales Total Collections October November December Salaries Expense $22,613 $23,065 $23,987 Depreciation Expense $6,500 $6,500 $6,500 Other Operating Expenses $18,090 $18,452 $19,190 Total Expenses $47,203 $48,017 $49,677 Total $69,665 $19,500 $55,732 $144,896 8 9 10 11 12 13 14 15 Collections From Credit Sales expected to be 55% of previous month's Sales 16 September Credit Sales = $80,000 17 18 19 20 1 Enterprise Tea Company Budgeted Cash Payments For Inventory Purposes 4th Quarter 2019 B Enterprise Tea Company Payments for Operating Expenses 4th Quarter 2019 2 3 4 October November December 5 October November December Total Total 6 7 50%. Current Month 50% Last Month Total Disbursements Salaries Expense Other Operating Expenses Total Expenses B 9 10 12 All Operating Expenses paid in cash in current month 0 1 Sep 2019 Pur=40,000 2 3 13 14 1 2 Enterprise Tea Company Cash Budget 4th Quarter 2019 3 4 5 November December October 6 Beginning Cash Balance 7 Cash Collections 8 Cash Available 9 Cash Payments: 10 Purchases of Inventory 11 Operating Expenses 12 Total Cash Payments 13 Desired Ending Cash Balance 14 Cash Excess or (Deficiency) 15 Ending Cash Balance 16 17 18 September Ending Cash Balance=50,000 19 Desired Ending Inventory=3,000 20