Hannah & Maggie Inc.

Hannah & Maggie are independent recording artists who manufacture all their CDs by hand whole sale. In December Hannah found a Neumann record cutting machine on sale for $25,000. The machine can be used to transfer digital music to vinyl records (LPs).

Hannah and Maggie think their new album would sound amazing (and sell well) as an LP, but they need a loan to purchase the machine. A local bank is agreeable, but requires both current (2013) and budgeted (3 months in 2014) financial statements.

Balance Sheet			December 2013 &
December 31, 2013			2014 Sales Forecast
Cash	$19,200		January	29,600
A/R	22,000		February	34,400
Inventory @1/1/14	6,000		March	38,000
Fixed Assets	28,000		April	43,200
Total Assets	$75,200		May	31,200
A/P Purchase