Please read the below scenario carefully and prepare using excel a brief income statement, balance sheet, and cash forecast for the next 15 days (cash flow statement not needed but you can add if you like).

Scenario:

We are opening a new office in a semi-rural town. We are excited to help the families and kids there, but dont know how long it will take for the office to ramp up (see enough patients). Our budget for the office was $100,000, composed of $50,000 furniture and equipment, $30,000 supplies, and $20,000 extra cash to market and get started. We are now up and running and 2 months in. We have collected the below fees and have the below invoices to date.

Start-up Invoices:

• Equipment company - $45,000
• Refrigerator - $1000
• Furniture - $3,000
• Initial dental supply order - $23,000
• Office supplies - $4,000
• Deposit on Utilities - $1,000

Production: (work we have performed)

• $50,000

Cash Collected:

• $25,000

Invoices paid since we have paid been open:

• Rent for 2 months at $3,000 each
• Second Dental supply order - $5,000
• Initial Payroll - $15,000
• Third Dental supply order - $5,000
• Utilities - $1,500

Other:

• Marketing mailers - $10,000 due in 10 days
• There is a payroll next week for $7,500

Questions to consider:

• Was the startup over or under budget?
• What does the P&L look like for the first two months?
• How much cash is in the bank today and what bills are left?
• We are a cash basis accounting company so start there.