Jeff, LLC. is a wholesale electrical distributor. The following projections have been made for the 2021 budget:

Sales Forecast

January, 2021	$200,000
February	$220,000
March	$180,000
April	$210,000
May	$200,000
June	$180,000
July	$175,000
August	$170,000
September	$185,000
October	$200,000
November	$210,000
December	$220,000
January, 2022	$230,000

Cost Data:

Average Purchase Price of Product:

60% of selling price

Commission to Sales People:

10% of sales

Other Operating Expenses: $42,000 per month, including $2,000 depreciation, not including interest expense (if any.)

Jeff, LLC Projected Balance Sheet at December 31, 2020

Assets		Equities
Cash	$ 20,000	Accounts Payable
Accounts Receivable	110,000	(for merchandise)	$ 80,000
Inventory	150,000	Common Stock	300,000
Building & Equipment, net	200,000	Retained Earnings	100,000
Total	$480,000	Total	$480,000

Other Information:

1. Jeff maintains inventory at 90% of the coming month's sales requirements.
2. Sales are collected 40% in the month of sale, 58% in the following month.
3. Bad debts are written off immediately, if not collected in the month following the sale.
4. Purchases are paid 30% in the month of purchase, 70% in the following month.
5. All other expenses requiring cash are paid in the month incurred.
6. The board of directors plans to declare a $4,000 dividend on May 10, 2021, payable June 2, 2021.
7. The company wishes to maintain a minimum cash balance of $15,000. A line of credit has been negotiated, to be used only when necessary, at an interest rate of 12%.
8. No capital purchases are planned.

Required:

In Excel, prepare a monthly budget for January to December 2021, with totals for the year, to include:

1. A budgeted income statement
2. A purchase budget
3. A cash receipts budget
4. A cash disbursements budget
5. A cash budget and
6. A pro forma balance sheet as of December 31, 2021.

Notes & Hints...

1. If you feel that some critical piece of information is missing, make and highlight an appropriate assumption.
2. I recommend constructing the statements for one month and then copying the formulas over to the remaining months. I will look at the copy of your spreadsheet on the disk to see what formulas you have used to develop your model.
3. Make sure you provide instructions for other users if the loan calculation isnt automatic.
4. Ignore taxes.