Inteletec Inc. distributes a new gaming console, called B-box. The following information was gathered to prepare the budget for the third quarter.

B-Boxes are budgeted to sell for an average price of $180. Unit sales are expected to be as follows:

• June 10,000 B-Boxes
• July 10,500 B-Boxes
• August 10,800 B-Boxes
• September 12,600 B-Boxes
• October 14,600 B-Boxes

Sales are made for cash and on credit. The following collection pattern is used to estimate monthly cash collections:

Cash sales 25%

Credit salesmonth of sale 50

Credit salesmonth after sale 23

Uncollectible 2

Total 100%

The company tries to maintain an inventory of 25% of the following month's sales. The company expects to have 2,500 B-Boxes on hand on June 30. Inteletec pays an average of $120 per B-Box.

The company pays for 70% of its purchases in the month of purchase and the remaining 30% in the month after purchase.

The following monthly selling and administrative expenses are planned for the quarter, though advertising will have a one-time $50,000 increase in August to secure orders for the Xmas season. Depreciation for August and September will increase due to additional capital assets to be purchased in August (see below).

	July	Aug	Sept
Depreciation	$10,000	$32,500	$32,500
Rent	50,000	50,000	50,000
Advertising	60,000	110,000	84,000
Salaries	300,000	300,000	300,000
Bad debts	37,800	38,880	45,360

On August 1st , the company plans to purchase $500,000 of new office equipment and a delivery truck. Additional depreciation is already accounted for in the above selling and administrative expenses.

Inteletec will collect the full $500,000 accounts receivable balance of June 30^th in July. Inteletec will pay the $340,000 of June Accounts Payable in August.

Inteletec wants to maintain a minimum cash balance of $100,000. An open line of credit at a local bank allows the company to borrow up to $300,000 per quarter in $1,000 increments.

All borrowing is done at the beginning of the month, and all repayments are made at the end of a month in $1,000 increments. Accrued interest is paid only when principal is repaid. The interest rate is 12% per year.

Inteletec tax rate is 30%.

The June 30 balance sheet is budgeted as follows:

How do I Make all components of Inteletec's master budget for the third quarter (Sales Budget, Selling and Administrative Expense Budget, Inventory Purchases Budget, Ending Inventory Budget, Cash Receipts Budget, Cash Payments for Inventory Budget, and Cash Budget)

How do I Make a pro-forma income statement for the third quarter.

How do I Make a pro-forma balance sheet as of September 30.

Cash Accounts receivable Inventory Plant & equipment Accumulated depreciation Total assets June 30 $ 70,000 500,000 300,000 600,000 (150,000) $ 1,320,000 Accounts payable Common stock Retained earnings Total liabilities and equities $ 340,000 400,000 580,000 $ 1,320,000