Hi! it would be so helpful if you can please answer the purchases part of this balance sheet! I am cropping the purchases part so you can view it better! Thank you!

please answer :)

Assume you are the Financial Analyst for Lymbo Inc., and it is January 1, 2022. Lymbo Inc., a manufacturing company, has been growing quickly, but it has found that its financial situation is continually under pressure. Production has fluctuated to meet demand in an attempt to provide first-class service, resulting in larger inventory positions. Also, the collection of accounts has worsened to approximately 60 days, which is well above the invoice terms of net 30 days. To address the financial concerns, Lymbo Inc. is forecasting level production and the expected impact of plans by the credit department to bring the average collection period down to 35 days. Forecasted sales for the upcoming months are as follows: January February March April May June $1,878,221 1,986,165 2,115,698 2,266,819 2,374,763 2,461,118 Sales for November were $1,662,334 and will be approximately $1,770,278 for the just completed month of December. It is projected that the current collection period of 60 days will be reduced to 50 days for January and February and to 42 days for March and April, and will meet the target of 35 days in May and June. Inventory purchases are forecast to be $608,500 a month beginning in January. In November they were $623,000, and in December they were $618,000. The purchases are paid in 40 days. Manufacturing labour expense will be paid as incurred and will be $189,900 a month. Other expenses of manufacturing will also be paid as incurred and are expected to be $348,000 a month. Cost of goods sold has regularly been 68% of sales. Amortization is $38,000 per month. Selling and administrative expenses are expected to be 8 percent of sales. The tax rate is 45 percent. There will be payments on Notes Payable of $590,000 in each of February and May. Income taxes of $320,000 are due and paid in April. Dividends of $18,400 and interest of $234,000 (3 months of interest) are paid in January and April. LYMBO INC. Balance Sheet (Estimated) December 31, 2021 ($ thousands) ASSETS Current Assets: Cash Accounts Receivable Inventory Total Current Assets Capital Assets: Plant and Equipment Less: Accumulated Amortization Total Assets $639 4,100 8,100 $12,839 $11,273 4,784 6,489 $19,328 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable Notes Payable Accrued Liabilities Total Current Liabilities Long-term Debt Common Stock Retained Earnings Total Liabilities and Shareholders' Equity $918 4,222 2,596 $7,736 4,648 4,577 2,367 $19,328 Required: Using the information above, construct an pro forma Income Statement and cash budget for the six-month period (January to June 2022). Identify if there will be any need for short-term financing. Also, comment on the policy changes and potential consequences if the collection period had remained at 60 days. Assume capital assets are sufficient for increased sales. Bonus Mark Prepare a monthly pro forma Balance Sheet (for the six months June 2022). No accounts are effected other than those shown above. Actual Expected Nov Dec $1.682.334 $1.770.278 Jan $1.878.221 Forecasted Montly Pro-Forma Income Statements Feb Mar Apr May $1.986.165 $2.115 808 2.280.810 $2.374.763 Jun $2.481.118 Pro-Forma Income Statement - Jan. to Jun. $13.082.784 Sales COGS (8896) $1,130,387 $1.203,789 $1.277.100 $1,350,592 $1,438 675 $1,541,437 $1.614.830 $1,673,560 $8.898.293 Gross Profit 5531,047 3560.480 5001,031 $635,573 5677,023 $725382 $750.024 $787.558 55 284,627 38.000 $132.987 $300,000 38.000 5141,622 $380,807 38.000 $158,893 $438.680 38.000 $100,250 $469.768 38.000 $189.981 5531,043 38.000 $196,880 $552.008 $1.040,023 $3.050.005 $408.000 Amortization Selling and Admin (896) Operating Profe Interest (S) 5 Profit Before Taxes Tax 45%) Net Income Dividends To Retained Earnings $360,980 $102.432 $360.900 5388,887 $174.000 5388,881 38.000 $150,258 $412,773 234000 $178,772 $80.448 $160,373 18400 $141.973 $438.680 $197.408 $438,680 $400.768 $211.305 $400.768 38.000 $181,346 5500,037 234000 272,037 $122.410 $253.637 18400 $235.237 5531,043 5239.374 5531,043 $552.668 5248,701 $552.668 S360.900 5388,887 $438.680 $409.708 S531.943 $552.668 S823,000.00 5818.000 Inventory Purchases Manufacturing Labour Other Manufacturing Cost of Goods Produced $808,500 $180,900 $348.000 $70.600 5808,500 $180.000 $348.000 $70,600 $808.500l $180,000 $348.000 $70.600 5608,500l $180,000 $348.000 $70,600 $808,500 $180.000 $348.000 $70,600 $808,500 $180.000 $348.000 $70,600 $590,000 $500,000 $234,000 Principal Payment - Notes Interest Payments Income Tax Payments Dividend Payments $234.000 $320,000 $18.400 $18.400 Purchases From Nov Purchases From Dec Purchases From Jan Purchases From Feb Purchases From Mar Purchases From Apr Purchases From May Purchases Total Cash Payments Labour (Cash) Selling & Admin (Cash) Other Manufacturing (Cash) Principle Payments (Cash Interest (Cash) Taces (Cash) Dividends (Cash Total Cash Payments Purchases From Nov Purchases From Dec Purchases From Jan Purchases From Feb Purchases From Mar Purchases From Apr Purchases From May Purchases Total Cash Payments Labour (Cash) Selling & Admin (Cash) Other Manufacturing (Cash) Principle Payments (Cash) Interest (Cash) Taxes (Cash) Dividends (Cash) Total Cash Payments Sales Cash Receipts Nov Cash Receipts Dec Cash Receipts Jan Cash Receipts Feb Cash Receipts Mar Cash Receipts Apr Cash Receipts May Cash Receipts Jun Total Cash Receipts Assume you are the Financial Analyst for Lymbo Inc., and it is January 1, 2022. Lymbo Inc., a manufacturing company, has been growing quickly, but it has found that its financial situation is continually under pressure. Production has fluctuated to meet demand in an attempt to provide first-class service, resulting in larger inventory positions. Also, the collection of accounts has worsened to approximately 60 days, which is well above the invoice terms of net 30 days. To address the financial concerns, Lymbo Inc. is forecasting level production and the expected impact of plans by the credit department to bring the average collection period down to 35 days. Forecasted sales for the upcoming months are as follows: January February March April May June $1,878,221 1,986,165 2,115,698 2,266,819 2,374,763 2,461,118 Sales for November were $1,662,334 and will be approximately $1,770,278 for the just completed month of December. It is projected that the current collection period of 60 days will be reduced to 50 days for January and February and to 42 days for March and April, and will meet the target of 35 days in May and June. Inventory purchases are forecast to be $608,500 a month beginning in January. In November they were $623,000, and in December they were $618,000. The purchases are paid in 40 days. Manufacturing labour expense will be paid as incurred and will be $189,900 a month. Other expenses of manufacturing will also be paid as incurred and are expected to be $348,000 a month. Cost of goods sold has regularly been 68% of sales. Amortization is $38,000 per month. Selling and administrative expenses are expected to be 8 percent of sales. The tax rate is 45 percent. There will be payments on Notes Payable of $590,000 in each of February and May. Income taxes of $320,000 are due and paid in April. Dividends of $18,400 and interest of $234,000 (3 months of interest) are paid in January and April. LYMBO INC. Balance Sheet (Estimated) December 31, 2021 ($ thousands) ASSETS Current Assets: Cash Accounts Receivable Inventory Total Current Assets Capital Assets: Plant and Equipment Less: Accumulated Amortization Total Assets $639 4,100 8,100 $12,839 $11,273 4,784 6,489 $19,328 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable Notes Payable Accrued Liabilities Total Current Liabilities Long-term Debt Common Stock Retained Earnings Total Liabilities and Shareholders' Equity $918 4,222 2,596 $7,736 4,648 4,577 2,367 $19,328 Required: Using the information above, construct an pro forma Income Statement and cash budget for the six-month period (January to June 2022). Identify if there will be any need for short-term financing. Also, comment on the policy changes and potential consequences if the collection period had remained at 60 days. Assume capital assets are sufficient for increased sales. Bonus Mark Prepare a monthly pro forma Balance Sheet (for the six months June 2022). No accounts are effected other than those shown above. Actual Expected Nov Dec $1.682.334 $1.770.278 Jan $1.878.221 Forecasted Montly Pro-Forma Income Statements Feb Mar Apr May $1.986.165 $2.115 808 2.280.810 $2.374.763 Jun $2.481.118 Pro-Forma Income Statement - Jan. to Jun. $13.082.784 Sales COGS (8896) $1,130,387 $1.203,789 $1.277.100 $1,350,592 $1,438 675 $1,541,437 $1.614.830 $1,673,560 $8.898.293 Gross Profit 5531,047 3560.480 5001,031 $635,573 5677,023 $725382 $750.024 $787.558 55 284,627 38.000 $132.987 $300,000 38.000 5141,622 $380,807 38.000 $158,893 $438.680 38.000 $100,250 $469.768 38.000 $189.981 5531,043 38.000 $196,880 $552.008 $1.040,023 $3.050.005 $408.000 Amortization Selling and Admin (896) Operating Profe Interest (S) 5 Profit Before Taxes Tax 45%) Net Income Dividends To Retained Earnings $360,980 $102.432 $360.900 5388,887 $174.000 5388,881 38.000 $150,258 $412,773 234000 $178,772 $80.448 $160,373 18400 $141.973 $438.680 $197.408 $438,680 $400.768 $211.305 $400.768 38.000 $181,346 5500,037 234000 272,037 $122.410 $253.637 18400 $235.237 5531,043 5239.374 5531,043 $552.668 5248,701 $552.668 S360.900 5388,887 $438.680 $409.708 S531.943 $552.668 S823,000.00 5818.000 Inventory Purchases Manufacturing Labour Other Manufacturing Cost of Goods Produced $808,500 $180,900 $348.000 $70.600 5808,500 $180.000 $348.000 $70,600 $808.500l $180,000 $348.000 $70.600 5608,500l $180,000 $348.000 $70,600 $808,500 $180.000 $348.000 $70,600 $808,500 $180.000 $348.000 $70,600 $590,000 $500,000 $234,000 Principal Payment - Notes Interest Payments Income Tax Payments Dividend Payments $234.000 $320,000 $18.400 $18.400 Purchases From Nov Purchases From Dec Purchases From Jan Purchases From Feb Purchases From Mar Purchases From Apr Purchases From May Purchases Total Cash Payments Labour (Cash) Selling & Admin (Cash) Other Manufacturing (Cash) Principle Payments (Cash Interest (Cash) Taces (Cash) Dividends (Cash Total Cash Payments Purchases From Nov Purchases From Dec Purchases From Jan Purchases From Feb Purchases From Mar Purchases From Apr Purchases From May Purchases Total Cash Payments Labour (Cash) Selling & Admin (Cash) Other Manufacturing (Cash) Principle Payments (Cash) Interest (Cash) Taxes (Cash) Dividends (Cash) Total Cash Payments Sales Cash Receipts Nov Cash Receipts Dec Cash Receipts Jan Cash Receipts Feb Cash Receipts Mar Cash Receipts Apr Cash Receipts May Cash Receipts Jun Total Cash Receipts