F G H B D 1 2 Blue Screen Company Pro Forma Balance Sheet 30-Sep-19 3 4 Assets 5 Vertical Analysis 6 Cash 7 Accounts Receivable 8 Inventory 9 Equipment, net 10 Total Assets Blue Screen Company Pro Forma Income Statement Quarter Ended September 30, 2019 Vertical Analysis Sales $932,668 100% Cost of Goods Sold $606,234 65% Gross Profit $326,434 35% Operating Expenses: Salary Expense $121,247 13% Depreciation Expense $12,000 1% Other Operating Expenses $102,594 11% Total Expenses $235,840 25% Net Income $90,594 10% $50,000 Liabilities 12 13 Accounts Payable 14 Notes Payable 15 Total Liabilities 16 17 18 Stockholders Equity 19 Common Stock 20 Retained Earnings 21 Total Stockholders Equity 22 Total Liabilities & Stockholders Equity 23 $100,000 $260.809 26 Beginning Accounts Receivable=$35,000 27 Beginning Accounts Payable=51.785 Total $606,234 $326,434 $932,668 1 Blue Screen Company 2 Sales Budget 3 3rd Quarter 2019 4 July August September 5 Cash Sales (65%) $ 197,925 $201,884 $206,426 6 Credit Sales (35%) $106,575 $108,707 $111,152 7 Total Sales $304,500 $310,590 $317,578 8 9 10 June Sales=$300,000 11 12 Assumptions 13 July Sales increase 1.5% over June 14 August Sales increase 2% over July 15 September Sales increase 2.25% over August 16. 1 Blue Screen Company 2 Cost of Goods Sold Budget 3 3rd Quarter 2019 4 July August September Total 5 Cost of Goods Sold $197.925 $ 201,884 $206,426 $606,234 6 Desired Ending Inventory $173,236 $176,601 $180,462 $530,299 7 Total Inventory Required $371,161 $378,484 $386,888 $1,136,534 8 Beginning Inventory $125,000 $173,236 $176,601 $474,837 9 Total Purchases Required $246,161 $205,248 $210,287 $661,696 10 11 12 June Ending Inventory=$125,000 13 14 Assumptions 15 Cost of Goods Sold=65% of Sales 16 Desired Ending Inventory=$5,000+85% of Cost of Goods Sold 17 A 1 2 B Blue Screen Company Collections Budget 3rd Quarter 2019 July August September Blue Screen Company Purchases Budget 3rd Quarter 2019 July August September 3 Total 4 Total 5 6 Cash Sales Credit Sales Total Collections 35% Current Month 45% Previous Month Total Payments 7 5 Eco 0 Assumptions: 1 Collections from Credit Sales=60% of previous month sales. 40% remaining is deferred 12 June Credit Sales=$175,000 10 Assumptions: 11 June Purchases $230,000 12 13 14 13 E F G H Total B D 1 Blue Screen Company 2 Payments for Operating Expenses Budget 3 3rd Quarter 2019 4 July August September 5 Salary Expense 6 Other Operating Expenses 7 Total Expenses 8 9 10 Assumptions: 11 All Operating Expenses paid in Cash 12 13 B C D 1 Blue Screen Company 2 Cash Budget 3 3rd Quarter 2019 4 July August September 5 Beginning Balance 6 Cash Collections 7 Cash Available 8 Cash Payments: 9 Purchases 10 Operating Expenses 11 Total Cash Payments 12 Desired Ending Cash Balance 13 Cash Excess or (Deficiency) 14 Note Payable 15 Ending Cash Balance 16 17 18 Assumptions: 19 Ending Cash Balance for June=$50,000 20 Desired Ending Cash Balance=$7,500 21 Note Payable of $6,000 was issued September 30 22 14 15 16 17 18 19 20