Here is an information regarding the relevant PDC company policies

The building rent is fixed at a monthly rate of $ 4,600. In the period January - June 2019 PDC The company decided not to buy trucks (fixed assets) anymore. Loan interest 1.5% per month applies. Payment of loan installments and interest is made at the end month. Depreciation expense is $ 1,150 per month. The minimum cash balance $23.000. Insurance expense per month is $ 460. PDC Company prepaid insurance, the balance is deducted automatically per month for $ 460. After the insurance balance is prepaid the value is 0, the new PDC company will make insurance repayments for 1 year. For the sake of simplicity of calculation, hence tax calculations are not included in this case study.

Based on the information above and some additional information below, do it following instructions:

a. Prepare the cash budget from January - June 2019.

b. Here is some additional information about the PDC Company. prepaid insurance for January 2019 is $ 5,520. Value of fixed assets (equipment,fixture & others) December 2018 was $ 92.000. PDC Company decided none purchase of fixed assets during January - June 2019. Accumulated depreciation on December 2018 is $ 39,790. December 2018's common stock (owner's equity) was $ 184,357.The number of common shares from January to April 2019 is calculated by adding up previous month's common stock with the current month's net income. Several occurence resulted in the value of the May 2019 common stock to be $ 13,625 and the value of the common stock for June 2019 was $ 37,155. Suppose the PDC Company set the amount of the loan as below:

Then compile the projected income statement and balance sheet for January - June 2019 with reference in the additional information in point b and the information in the question narrative.

The beginning cash balance is $23.000

(A) SALES SCHEDULE DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY Schedule 1: Sales Forecast Credit sales 40% Cash sales 60% 160,000 64,000 96,000 700,000 280,000 420,000 900,000 360,000 540,000 1,000,000 400,000 600,000 1,100,000 1,400,000 1,500,000 1,700,000 440,000 560,000 600,000 680,000 660,000 840,000 900,000 1,020,000 Scehdule 2: Cash Collections Cash sales this month's 100% of last month's credit sales Total collections 420,000 64,000 484,000 540,000 280,00 820,000 600,000 360,000 960,000 660,000 400,000 1,060,000 840,000 440,000 1,280,000 900,000 1,020,000 560,000 600,000 1,460,000 1,620,000 (B) PURCHASE SCHEDULE DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE Schedule 3: Purchases Ending inventory 152,400 550,000 606,000 662,000 830,000 886,000 998,000 Cost of goods sold Total needed Beginning inventory Purchases 112,000 490,000 264,400 1,040,000 135,600 152,400 128,800 887,600 630,000 1,236,000 550,000 686,000 700,000 1,362,000 606,000 756,000 770,000 980,000 1,050,000 1,600,000 1,866,000 2,048,000 662,000 830,000 886,000 938,000 1,036,000 1,162,000 Schedule 4 : Purchase Disbursements 50% of last month's purchases 50% of this month's purchases Disbursements for purchases 64,400 443,800 508,200 443,800 343,000 786,800 343,000 378,000 721,000 378,000 469,000 847,000 469,000 518,000 518,000 581,000 987,000 1,099,000 APRIL MAY JUNE (C) WAGES AND COMMISIONS SCHEDULE DECEMBER JANUARY FEBRUARY MARCH Schedule 5 : Wages and Commisions Wages, all fixed 5,750 5,750 5,750 5,750 Commisions (15% of current sales) 24,000 105,000 135,000 150,000 Total 29,750 110,750 140,750 155,750 5,750 165,000 170,750 5,750 210,000 215,750 5,750 225,000 230,750 Schedule 6: Disbursements Wages 50% of last month's expenses 50% of this month's expenses Total 14,875 55,375 70,250 55,375 70,375 125,750 70,375 77,875 148,250 77,875 85,375 163,250 85,375 107,875 193,250 107,875 115,375 223,250 2019 January $ February $ March $ April $ May $ June $ 15.608 310.158 284.757 294.607 50.000 50.000 (A) SALES SCHEDULE DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY Schedule 1: Sales Forecast Credit sales 40% Cash sales 60% 160,000 64,000 96,000 700,000 280,000 420,000 900,000 360,000 540,000 1,000,000 400,000 600,000 1,100,000 1,400,000 1,500,000 1,700,000 440,000 560,000 600,000 680,000 660,000 840,000 900,000 1,020,000 Scehdule 2: Cash Collections Cash sales this month's 100% of last month's credit sales Total collections 420,000 64,000 484,000 540,000 280,00 820,000 600,000 360,000 960,000 660,000 400,000 1,060,000 840,000 440,000 1,280,000 900,000 1,020,000 560,000 600,000 1,460,000 1,620,000 (B) PURCHASE SCHEDULE DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE Schedule 3: Purchases Ending inventory 152,400 550,000 606,000 662,000 830,000 886,000 998,000 Cost of goods sold Total needed Beginning inventory Purchases 112,000 490,000 264,400 1,040,000 135,600 152,400 128,800 887,600 630,000 1,236,000 550,000 686,000 700,000 1,362,000 606,000 756,000 770,000 980,000 1,050,000 1,600,000 1,866,000 2,048,000 662,000 830,000 886,000 938,000 1,036,000 1,162,000 Schedule 4 : Purchase Disbursements 50% of last month's purchases 50% of this month's purchases Disbursements for purchases 64,400 443,800 508,200 443,800 343,000 786,800 343,000 378,000 721,000 378,000 469,000 847,000 469,000 518,000 518,000 581,000 987,000 1,099,000 APRIL MAY JUNE (C) WAGES AND COMMISIONS SCHEDULE DECEMBER JANUARY FEBRUARY MARCH Schedule 5 : Wages and Commisions Wages, all fixed 5,750 5,750 5,750 5,750 Commisions (15% of current sales) 24,000 105,000 135,000 150,000 Total 29,750 110,750 140,750 155,750 5,750 165,000 170,750 5,750 210,000 215,750 5,750 225,000 230,750 Schedule 6: Disbursements Wages 50% of last month's expenses 50% of this month's expenses Total 14,875 55,375 70,250 55,375 70,375 125,750 70,375 77,875 148,250 77,875 85,375 163,250 85,375 107,875 193,250 107,875 115,375 223,250 2019 January $ February $ March $ April $ May $ June $ 15.608 310.158 284.757 294.607 50.000 50.000