NAME: TAKE HOME PROBLEM-SUMMER 2023 DUE. THURS, JULY 6 Gerden Salek, ine. December B1, Dof2 Cank Acecunts Recelvable Imventary Arepidid Rent Prop. Plarit \& Equile Rscum Ders Totas Aswets You are the Business Manager of Ganden Sales, Ine and the bank hus usked you to prepare a cash and earnangs budget'forecast and Pro-Forma Balance Sheet and Income Statement for the next quarter. After your discussion with the various departments, you have come up with the following information/assumptions: - November 2022 and December 2022 sales were $110,000, each month * Sales for the following three months will increase by $1,900 each month; beginning January through April. - Cost of Goods Sold represents 65% of sales, each month. - Cash Operating Expenses are 25\% of sales, exclusive of Depreciation expense * Depreclation Expense is 51.300 , per month and prepaid rent is amortized at 5500 per month * Of the month'ssales, 15% is collected as cash with the remaining placed on customer's account. * Customer's accounts are usugly paid off over a 2 month period ( 50% each month) beginning the month following the sale - The CFO just informed you that one customer has filed bankruptcy therefore, $2,700 from Nov 1/2 Sales will be written aff in Lan to Bad Debt Exp. - To maintain sufficient inventory, the company purchases 100% of the next month's cost of sales. They pay for 60%, in cash, in the month they purchase and pay the remaining 40% in the following month. * In March, the company is planning on replacing an outdated machine. The new machine will cost $9,000. The old machine originally cost $5,500, with a Net Eoak Value of $1,300 and will be sold for $2,250 - The Company does not pay or accrue for taxes until the end of December. - The owner plans to withdraw $2,000 from the company at the end of March, * Assume a.. operating erpenses incurred during the month are paid, in cash, during the same month incurred * The Note Paysble requires a principal payment of $4,000, plus interest of $600, at the end of March. For this note, no interest is Accrul/Expersed until interest is paid * The minimum cash menth end balance required according to the bank agreement is $50,000 for amy ghen month beginning san30,2023; - A working capital line of credir is ava lable, up to $50,000, and if needed, money is taken out at the beginning of the month. Interest is N \% per month, * Interest is paid on the working-capital line when principal payments are paid on the debt at the end of any given month. * Interest is accrucd on the working capital line effective the beginning of the month when money is received. 1. Prepare a detailed Cash Budgetforecast for each month of Jan, Feb and March, 2023 2. Prepare an Income Statement for each month. Jan, Feb 8 . Mar 2023 (in good form) 1. Propure a Balance Shect as of March 31,2023 (in good form) 4. Although you may use Excel, this assigumat must be furned in as a HAND-WRITIEN document. This shect mast be turaed in with your assifmment. No execpions. Check Figures for 03/31 Net Income; (3mo) $26,281.90 Inventory (3/31):$76,440 NAME: TAKE HOME PROBLEM-SUMMER 2023 DUE. THURS, JULY 6 Gerden Salek, ine. December B1, Dof2 Cank Acecunts Recelvable Imventary Arepidid Rent Prop. Plarit \& Equile Rscum Ders Totas Aswets You are the Business Manager of Ganden Sales, Ine and the bank hus usked you to prepare a cash and earnangs budget'forecast and Pro-Forma Balance Sheet and Income Statement for the next quarter. After your discussion with the various departments, you have come up with the following information/assumptions: - November 2022 and December 2022 sales were $110,000, each month * Sales for the following three months will increase by $1,900 each month; beginning January through April. - Cost of Goods Sold represents 65% of sales, each month. - Cash Operating Expenses are 25\% of sales, exclusive of Depreciation expense * Depreclation Expense is 51.300 , per month and prepaid rent is amortized at 5500 per month * Of the month'ssales, 15% is collected as cash with the remaining placed on customer's account. * Customer's accounts are usugly paid off over a 2 month period ( 50% each month) beginning the month following the sale - The CFO just informed you that one customer has filed bankruptcy therefore, $2,700 from Nov 1/2 Sales will be written aff in Lan to Bad Debt Exp. - To maintain sufficient inventory, the company purchases 100% of the next month's cost of sales. They pay for 60%, in cash, in the month they purchase and pay the remaining 40% in the following month. * In March, the company is planning on replacing an outdated machine. The new machine will cost $9,000. The old machine originally cost $5,500, with a Net Eoak Value of $1,300 and will be sold for $2,250 - The Company does not pay or accrue for taxes until the end of December. - The owner plans to withdraw $2,000 from the company at the end of March, * Assume a.. operating erpenses incurred during the month are paid, in cash, during the same month incurred * The Note Paysble requires a principal payment of $4,000, plus interest of $600, at the end of March. For this note, no interest is Accrul/Expersed until interest is paid * The minimum cash menth end balance required according to the bank agreement is $50,000 for amy ghen month beginning san30,2023; - A working capital line of credir is ava lable, up to $50,000, and if needed, money is taken out at the beginning of the month. Interest is N \% per month, * Interest is paid on the working-capital line when principal payments are paid on the debt at the end of any given month. * Interest is accrucd on the working capital line effective the beginning of the month when money is received. 1. Prepare a detailed Cash Budgetforecast for each month of Jan, Feb and March, 2023 2. Prepare an Income Statement for each month. Jan, Feb 8 . Mar 2023 (in good form) 1. Propure a Balance Shect as of March 31,2023 (in good form) 4. Although you may use Excel, this assigumat must be furned in as a HAND-WRITIEN document. This shect mast be turaed in with your assifmment. No execpions. Check Figures for 03/31 Net Income; (3mo) $26,281.90 Inventory (3/31):$76,440