I need help with my homework! it's my fourth time to post this question!

if possible, please include explanation.

Given checkpoint:

Budgeted income statement==>> Jan 2018 net income/loss is (2,800)!

and Beginning Retained earnings = 360,040

1 / 2 100% INFORMATION FOR HENRON, INC. BUDGET PROJECT 1. Heron, Inc. is a company that re-sells one product, a lawn chair. A contractor makes the product exclusively for Heron, so Heron has no manufacturing costs. Henron sells each chair for $10 per unit, but plans to raise the sales price to $11.00 per unit beginning May 1, 2018 2. The estimated sales (in units) are as follows: Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 12,000 13,000 9,000 10,000 13.000 Apr 18 15,000 May 18 18,000 Jun 18 18,000 Jul 18 17,000 3. They expect that 60% of any month's sales are for cash, and the remaining 40% are on credit. Of the credit sales, they expect to collect 20% in the month of the sale, 70% in the following month, and 10% in the month after that. 4. The firm's policy regarding inventory is to stock (i.e. have in ending inventory) 30% of the estimated sales for the next month. 5. Each lawn chair costs Henron $6. They plan to pay for 30% of the inventory purchases in the month of purchase, and pay the remaining 70% the following month (i.e. all of the previous month's Accounts Payable are paid off by the end of any month.) Page 1 of 2 Type here to search ORI 2 6. Monthly operating expenses consist of the following (any cash expenses are paid as incurred): Salaries and Wages Expense $17,000 Sales Commissions 7% of sales revenue Rent Expense $6,000 Supplies Expense $2,000 Other Overhead Expense $5,000 Depreciation Expense $2,500 7. Henron must maintain a minimum cash balance of $30,000. Borrowing can make up shortfalls. For simplicity, assume that the bank will only lend (and accept repayments) in $1,000 increments. Ignore interest on the loan in your calculations, but only borrow what you need, and pay off any loans as soon as possible. 8. Cash on hand as of December 31, 2017 is expected to be $15,000. In addition, there will be no notes payable (loan balance) as of this date. 9. See below the other Balance Sheet accounts with their balances as of the beginning of the year Buildings and Equipment Accumulated Deprecation Common Stock Retained Earnings $1,050,000 $ 520,000 $ 200,000 $ 370,660 Note: You must add current year depreciation expense to accumulated depreciation. 10 Henron maintains office supplies of $2.000 at the end of each month 11 Accounts receivable consists of the credit sales that have not been received Accounts payable consists of inventory purchases that have not yet been paid. LIT B D E 104 105 Heron, Inc. Budgeted Income Statement For the 6 mos ending June 30, 2018 Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 6 mos total Gross margin 370,660 106 107 108 109 110 Sales, net 111 Cost of Goods Sold 112 113 Total operating expenses 114 Net Income 115 116 Heron, Inc. 117 Budgeted Statement of Retained Earnings 118 For the 6 mos ending June 30, 2018 119 120 Retained Earnings, beginning 121 Add Net Income 122 Retained Earnings, ending 123 124 Heron, Inc. 125 Budgeted Balance Sheet 126 As of June 30, 2018 127 128 Assets 129 Current Assets 130 Cash 131 Accounts Receivable 132 Office Supplies 2.000 123 Merchandise Inventory K Budget Ready Type here to search ORI 14 S144 D E 360,040 A B 116 Heron, Inc. 117 Budgeted Statement of Retained Earnings 118 For the 6 mos ending June 30, 2018 119 120 Retained Earnings, beginning $ 121 Add Net Income 122 Retained Earnings, ending 123 124 Heron, Inc. 125 Budgeted Balance Sheet 126 As of June 30, 2018 127 128 Assets 129 Current Assets: 130 Cash 131 Accounts Receivable 132 Office Supplies 2,000 133 Merchandise Inventory 134 Total Current Assets 135 Plant and Equipment: 136 Buildings and Equipment 1,050,000 137 Accumulated Depreciation (520,000) 138 Total Plant and Equipment 139 Total assets 140 141 Liabilities: 142 Accounts Payable 143 144 Equity 145 Common Stock 200.000 146 Retained Earnings Total Equity 148 Total liabilities and equity 149 Budget Ready "E Type here to search