Eric and Heather agree that there also is a need for better forecasting regarding the companys cash inflows and outflows. After a series of questions, you determined that (1) the company had not prepared a cash budget for several quarters and (2) is not up to date on its payables and receivables. You are going to prepare a forecasted income statement and a forecasted cash budget for the fourth quarter. Pertinent information needed has been collected and is outlined below. Pertinent Information: The business manager/accountant and Heather provided projections for the 1st quarter 2021 (January through March 2021) and other information outlined below:

1. Total sales 4^th quarter 2020: 58,500 10-oz bottles; Sales price is $8/bottle
2. Total Sales for the 1st quarter 2021 are projected to increase 5% above the 4^th quarter 2020 total sales due to an aggressive marketing program that began December 1, 2020. Total quarter sales per month are expected to be realized as follows: 40% in January, 35% in February, and 25% in March. The sales budgets expressed in sales dollars and in the number the number of bottles sold are as follows

   PROJECTED	Oct	Nov	Dec	TOTAL QTR
   SALES REVENUE
   SALES	$126,945	$177,723	$203,112	$507,780
   SALES: PRICE X QUANTITY	$126,945	$177,723	$203,112	$507,780

   Number of Bottles Sold	Oct	Nov	Dec	TOTAL QTR
   Number of Bottles Sold	15,356	21,499	24,570	61,425