Help please!

Garden Sales, Inc. December 31, 2017 60,000Account Payable 57,000 Cash Accounts Receivable Inventory Prepaid Rent $ S 112,500 Working Capital Line $ 22,800 Note Payable S 50,000 12,000 Prop, Plant & Equip Accum Depr S s (100.000) Retained Earnings S 200,000 768,700 900,000 Common Stock Net PPRE S Total Assets S 1041.500 S 1,041,500 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 assumptions: November 2017 and December 2017 sales were $100,000, each month Because of a decline in the economy, sales for the following three months are expect beginning January through April. Cost of Sales represents 60% of sales, each month. Cash Operating Expenses are 15% of sales, exclusive of Depreciation expense Depreciation Expense is $20,000, per month and prepaid rent is amortized at S Of the month's sales, 25% 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 th ed to decline by $5 ,000 each month, . . 1,000 per month . you that one customer has filed bankruptcy therefore, $7,500 from Nov A/R Sales will be written off in Jan to Bad Debt Exp. The company purchases 100% of the next month's cost of sales. They pay for 60%, in cash, in the month they p pay the remaining 40% in the following month. urchase and In March, the company is planning on replacing an outdated machine. The new machine will cost $40,000. The old machine originally cost $30,000, with a Net Book Value of $10,000 and will be sold for $7,500. . The Company does not pay or accrue for taxes until the end of December. The Company plans to pay a cash dividend of $15,000 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 $500, at the end of March. For this note, no interest is Accrued/Expensed until interest is paid The minimum cash month end balance required according to the bank agreement will $90,000 for any given month beginning Jan 2017 A working capital line of credit is available, up to $100,000, and if needed, Interest is 1% per month. money is taken out at the beginning of the 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 cash estimated at the end of the month will be used to pay the working capital line balance and associated interest at the end of the month. Check Figures for 03/31 1. Prepare a Cash Budget/Forecast for Jan, Feb and March, 2018 (9pts) Total Assets $1,014,500.00 2. Prepare an Income Statement for the 3-month period ending March 2018 (8 pts) Interest Exp (Gmo) $741.64 Retained Earnings $747,458.36