Fast Feet is a new specialty running shoe store in Lumberton, NC. Fast Feet started off with a very good first year, as it made a profit. 2022 is not looking as good, however, as increased supply prices and utilities have driven up the COGS and a decrease in store traffic has sales numbers down considerably from 2021. Fast Feet does not have much of a seasonal swing, and with the store being new, there is no long-term data by which forecasting can be done. However, sales are currently averaging $142,867.08 per month through May 31, 2022. In that same time, the COGS has been $171,212.42. Obviously, Fast Feet cannot continue this same course the rest of the year. You have been contracted at a cost of $10,000 (administrative costs) to provide an analysis of what Fast Feet should do. The owner has asked that you provide these scenarios:

Project the Income Statement, Balance Sheet, and Statement of Cash Flows for 2022, should Fast Feet take on a new product line that is very popular with runners right now. The product will cost Fast Feet $164,000 in new inventory in 2022, but it should not increase COGS or S, G, & A, and is forecasted to bring in 262,400.000 in new sales the rest of 2022. Finance through Advent Athletics (the manufacturer of the new shoe line) at 19.25% interest compounded monthly, for 36 months. The debt would go into repayment starting August 1, 2022, lasting through July 31, 2025.