Enterprise Tea Company Pro Forma Income Statement For Qurater Ended December 31, 2019 Vertical Analysis $464,431 $278,658 $185,772 100.0% 60.0% 40.0% Sales Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense Depreciation Expense Other Operating Expenses Total Expenses Net Income $69,665 $19,500 $55,732 $144,896 $40,876 15.0% 4.2% 12.0% 31.2% 8.8% Pro Forma Balance Sheet 31-Dec-19 Vertical Analysis Assets Cash Accounts Receivable Inventory Equipment, net Total Assets $85,000 $85,000 Liabilities Accounts Payable Total Liabilities Stockholders Equity $131,376 $110,000 Common Stock Retained Earnings Total Stockholders Equity Total Liabilities & Stockholders Equity Beginning A/R-$20,000 Beginning A/P-$24,000 Enterprise Tea Company Sales Budget 4th Quarter 2019 October November December Total Cash Sales (60%) Credit Sales (40%) Total Sales $90,450$92,259 $95,949 $278,658 $185,772 $150,750 $153,765 $159,916 $464,431 $60,300 $61,506 $63,966 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% Enterprise Tea Company Cost of Goods Sold Budget 4th Quarter 2019 October November DecemberTotal Cost of Goods Sold(60%) $90,450 $92,259 $95,949 $278,658 Desired Ending Inventory $62,793 $63,968$66,367 $193,128 Total Inventory Required $153,243 $156,227 $162,316 $471,786 Beginning Inventory$50,000) ($62,793) ($63,968) ($176,761) Total Purchases Required $103,243 $93,435 $98,348 $295,025 Enterprise lea Company Operating Expense Budget 4th Quarter 2019 October November December Total $22,613 $23,065 $23,987 $69,665 $6,500 $6,500 $6,500 $19,500 Salaries Expense Depreciation Expense Other Operating Expenses $18,090 $18,452 $19,190 $55,732 Total Expenses $47,203 $48,017 $49,677 $144,896 Enterprise Tea Company Collections Budget 4th Quarter 2019 OctoberNovember December Total Cash Sales Credit Sales Total Collections ,Collections From Credit Sales expected to be 55% of previous month's sales September Credit Sales- $80,000 Enterprise Tea Company Budgeted Cash Payments For Inventory Purposes 4th Quarter 2019 October November December Total 50% Current Month 50% Last Month Total Disbursements Sep 2019 Pur 40,000 Enterprise Tea Company Payments for Operating Expenses 4th Quarter 2019 October November December Total Salaries Expense Other Operating Expenses Total Expenses All Operating Expenses paid in cash in current month Enterprise Tea Company Cash Budget 4th Quarter 2019 October NovemberDecember 6 Beginning Cash Balance 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 18 September Ending Cash Balance-50,000 19 Desired Ending Inventory 3,000 21
