Garden Sales, Inc. December 31, 2017 25,140.00 Cash Accounts Receivable memory Prepaid Hent 5 5 5 40,000.00 105,000.00 63,150.00 12,000.00 Account Payable Working Capital Line Accrued Interest til Note Payable 5 5 $ $ 50,000.00 Pron Plant & Equip Accum Depe 5 5 Net PPBES 900,000.00 (100.000,00) 800,000.00 Connon Stock Retained Earning $ 5 200,000.00 764 410.00 Total Assets $1,020,150.00 5 1.020,150.00 2. . . You are the Business Manager of Garden Sales, Inc and the bank has asked you to prepare a cash and earnings budget/forecast and Pro-Forma Balance Sheet and Income Statement for the next quarter. After your discussion with the various departments, you have come up with the following information/assumptions: November 2017 and December 2017 sales were $100,000, each month V Sales for the following three months will decrease by $3,000 each month, beginning January through Apri. / Cost of Sales represents 60% of sales, each month. Cash Operating Expenses are 13% of sales, exclusive of Depreciation expense Depreciation Expense is $2,300, per month and prepaid rent is amortized at 5500 per month Of the month's sales, 30% is collected as cash with the remaining placed on customer's account. Customer's accounts are usually paid off over a 2 month period (50% each month) beginning the month following the sale The CFO just informed you that one customer has filed bankruptcy therefore, $10,000 from Nov A/R Sales will be written oft in Jan to Bad Debt Exp. To maintain sufficient inventory, the company purchases 100% of the next month's cost of sales. They pay for 50%, in cash in the month they purchase and pay the remaining 40% in the following month. In March, the company is planning on replacing an outdated machine. The new machine will cost $35,000. The old machine originally cost $15,000, with a Net Book Value of $5,000 and will be sold for $1,900. The Company does not pay or accrue for taxes until the end of December The Company plans to pay a cash dividend of $8,000 at the end of March. Assume all operating expenses incurred during the month are paid, in cash, during the same month incurred The Note Payable requires a principal payment of $10,000, plus interest of $750, at the end of March. For this note, no interest is Accrual/Expense until interest is paid The minimum cash month end balance required according to the bank agreement is $60,000 for any given month beginning Jan 30, 2018 16. A working capital line of credit is available, up to $100,000, and if needed, money is taken out at the beginning of the month. Interest is 1.5% per month Interest is paid on the working capital line when principal payments are paid on the debt; at the end of any given month. Interest is accrued on the working capital line effective the beginning of the month when money is received. 1. Prepare a detailed Cash Budget/Forecast for each month of Jan, Feb and March, 2018 2. Prepare an Income Statement for the 3-month period ending March 2018 (good form) 3. Prepare a Balance Sheet as of March 31, 2018 (good form) 4. Assignment must be turned in as HAND WRITTEN document. Check Figures for 03/31768.90 Total Interest Exp: (3mo) S584.63 Total Assets: $1,052,000.00 1053, 561.10 25,740.00 Cash Accounts Receivable Inventory Prepaid Rent 5 5 $ 5 40,000.00 105,000.00 63,150.00 12,000.00 Account Payable Working Capital Line Accrued interest Payable Note Payable $ $ $ $ 50,000.00 Prop, Plant & Equip Accum Depr S $ Net PPEE 5 900,000.00 100.000,00) 800,000.00 Common Stock Retained Earning 5 5 200,000.00 744,410.00 Total Assets $ 1.020,150.00 51,020,150.00 . . . ou are the Business Manager of Garden Sales, Inc and the bank has asked you to prepare a cash and earnings udget/forecast and Pro-Forma Balance Sheet and Income Statement for the next quarter. After your discussion with e various departments, you have come up with the following information/assumptions: November 2017 and December 2017 sales were $100,000, each month U Sales for the following three months will decrease by $3,000 each month, beginning January through April. Cost of Sales represents 60% of sales, each month. Cash Operating Expenses are 13% of sales, exclusive of Depreciation expense Depreciation Expense is $2,300 per month and prepaid rent is amortized at $600 per month of the month's sales, 30% is collected as cash with the remaining placed on customer's account Customer's accounts are usually paid off over a 2 month period (50% each month) beginning the month following the sale The CFO just informed you that one customer has filed bankruptcy therefore, $10,000 from Nov A/R Sales will be written oft in Jan to Bad Debt Exp. To maintain sufficient inventory, the company purchases 100% of the next month's cost of sales. They pay for 60%, in cash, in the month they purchase and pay the remaining 40% in the following month. In March, the company is planning on replacing an outdated machine. The new machine will cost $35,000. The old machine originally cost $15,000, with a Net Book Value of $5,000 and will be sold for $1,900. The Company does not pay or accrue for taxes until the end of December The Company plans to pay a cash dividend of $8,000 at the end of March. Assume all operating expenses incurred during the month are paid, in cash, during the same month incurred The Note Payable requires a principal payment of $10,000, plus interest of $750, at the end of March. For this note, no interest is Accrual/Expense until interest is paid The minimum cash month end balance required according to the bank agreement is $60,000 for any given month beginning Jan 30, 2018 A working capital line of credit is available, up to $100,000, and if needed, money is taken out at the beginning of the month. Interest is 1.5% per month Interest is paid on the working capital line when principal payments are paid on the debt; at the end of any given month. Interest is accrued on the working capital line effective the beginning of the month when money is received. 1. Prepare a detailed Cash Budget/Forecast for each month of Jan, Feb and March, 2018 2. Prepare an Income Statement for the 3-month period ending March 2018 (good form) 3. Prepare a Balance Sheet as of March 31, 2018 (good form) 4. Assignment must be turned in as HAND WRITTEN document. Check Figures for 03/31768.90 Total Interest Exp: (3mo) S584.63 Total Assets: $1,052,000.00 1053, 561 10 . Garden Sales, Inc. December 31, 2017 25,140.00 Cash Accounts Receivable memory Prepaid Hent 5 5 5 40,000.00 105,000.00 63,150.00 12,000.00 Account Payable Working Capital Line Accrued Interest til Note Payable 5 5 $ $ 50,000.00 Pron Plant & Equip Accum Depe 5 5 Net PPBES 900,000.00 (100.000,00) 800,000.00 Connon Stock Retained Earning $ 5 200,000.00 764 410.00 Total Assets $1,020,150.00 5 1.020,150.00 2. . . You are the Business Manager of Garden Sales, Inc and the bank has asked you to prepare a cash and earnings budget/forecast and Pro-Forma Balance Sheet and Income Statement for the next quarter. After your discussion with the various departments, you have come up with the following information/assumptions: November 2017 and December 2017 sales were $100,000, each month V Sales for the following three months will decrease by $3,000 each month, beginning January through Apri. / Cost of Sales represents 60% of sales, each month. Cash Operating Expenses are 13% of sales, exclusive of Depreciation expense Depreciation Expense is $2,300, per month and prepaid rent is amortized at 5500 per month Of the month's sales, 30% is collected as cash with the remaining placed on customer's account. Customer's accounts are usually paid off over a 2 month period (50% each month) beginning the month following the sale The CFO just informed you that one customer has filed bankruptcy therefore, $10,000 from Nov A/R Sales will be written oft in Jan to Bad Debt Exp. To maintain sufficient inventory, the company purchases 100% of the next month's cost of sales. They pay for 50%, in cash in the month they purchase and pay the remaining 40% in the following month. In March, the company is planning on replacing an outdated machine. The new machine will cost $35,000. The old machine originally cost $15,000, with a Net Book Value of $5,000 and will be sold for $1,900. The Company does not pay or accrue for taxes until the end of December The Company plans to pay a cash dividend of $8,000 at the end of March. Assume all operating expenses incurred during the month are paid, in cash, during the same month incurred The Note Payable requires a principal payment of $10,000, plus interest of $750, at the end of March. For this note, no interest is Accrual/Expense until interest is paid The minimum cash month end balance required according to the bank agreement is $60,000 for any given month beginning Jan 30, 2018 16. A working capital line of credit is available, up to $100,000, and if needed, money is taken out at the beginning of the month. Interest is 1.5% per month Interest is paid on the working capital line when principal payments are paid on the debt; at the end of any given month. Interest is accrued on the working capital line effective the beginning of the month when money is received. 1. Prepare a detailed Cash Budget/Forecast for each month of Jan, Feb and March, 2018 2. Prepare an Income Statement for the 3-month period ending March 2018 (good form) 3. Prepare a Balance Sheet as of March 31, 2018 (good form) 4. Assignment must be turned in as HAND WRITTEN document. Check Figures for 03/31768.90 Total Interest Exp: (3mo) S584.63 Total Assets: $1,052,000.00 1053, 561.10 25,740.00 Cash Accounts Receivable Inventory Prepaid Rent 5 5 $ 5 40,000.00 105,000.00 63,150.00 12,000.00 Account Payable Working Capital Line Accrued interest Payable Note Payable $ $ $ $ 50,000.00 Prop, Plant & Equip Accum Depr S $ Net PPEE 5 900,000.00 100.000,00) 800,000.00 Common Stock Retained Earning 5 5 200,000.00 744,410.00 Total Assets $ 1.020,150.00 51,020,150.00 . . . ou are the Business Manager of Garden Sales, Inc and the bank has asked you to prepare a cash and earnings udget/forecast and Pro-Forma Balance Sheet and Income Statement for the next quarter. After your discussion with e various departments, you have come up with the following information/assumptions: November 2017 and December 2017 sales were $100,000, each month U Sales for the following three months will decrease by $3,000 each month, beginning January through April. Cost of Sales represents 60% of sales, each month. Cash Operating Expenses are 13% of sales, exclusive of Depreciation expense Depreciation Expense is $2,300 per month and prepaid rent is amortized at $600 per month of the month's sales, 30% is collected as cash with the remaining placed on customer's account Customer's accounts are usually paid off over a 2 month period (50% each month) beginning the month following the sale The CFO just informed you that one customer has filed bankruptcy therefore, $10,000 from Nov A/R Sales will be written oft in Jan to Bad Debt Exp. To maintain sufficient inventory, the company purchases 100% of the next month's cost of sales. They pay for 60%, in cash, in the month they purchase and pay the remaining 40% in the following month. In March, the company is planning on replacing an outdated machine. The new machine will cost $35,000. The old machine originally cost $15,000, with a Net Book Value of $5,000 and will be sold for $1,900. The Company does not pay or accrue for taxes until the end of December The Company plans to pay a cash dividend of $8,000 at the end of March. Assume all operating expenses incurred during the month are paid, in cash, during the same month incurred The Note Payable requires a principal payment of $10,000, plus interest of $750, at the end of March. For this note, no interest is Accrual/Expense until interest is paid The minimum cash month end balance required according to the bank agreement is $60,000 for any given month beginning Jan 30, 2018 A working capital line of credit is available, up to $100,000, and if needed, money is taken out at the beginning of the month. Interest is 1.5% per month Interest is paid on the working capital line when principal payments are paid on the debt; at the end of any given month. Interest is accrued on the working capital line effective the beginning of the month when money is received. 1. Prepare a detailed Cash Budget/Forecast for each month of Jan, Feb and March, 2018 2. Prepare an Income Statement for the 3-month period ending March 2018 (good form) 3. Prepare a Balance Sheet as of March 31, 2018 (good form) 4. Assignment must be turned in as HAND WRITTEN document. Check Figures for 03/31768.90 Total Interest Exp: (3mo) S584.63 Total Assets: $1,052,000.00 1053, 561 10