1. Prepare a Pro-forma income statement, and balance sheet and cash budget statement , for your company, on a monthly bases for the 2^nd quarter, and a total column for the quarter, based on the following assumptions:

• Sales will increase by 50% over Q1 and are equally spread out over the 3 months. All sales are on credit. The collection pattern is 20% in the month of sale, 50% in the month following sale and the balance in the 2^nd month following sale.
• All of the A/R outstanding at March 31^st will be received in the 2^nd quarter as follows; 80% in April and the balance in May.
• The employees will be the four employees who worked on the March 31^st payroll (in Assignment 2). Their wages and source deductions remain the same. Source deductions must be paid on the 15^th of the following month.
• Rent will be the same; telephone expense which will be $800 per month (+HST).
• The business will buy computer equipment on April 1 for $1,000 plus HST.
• HST is paid on the 15^th of the month following the end of the quarter.
• Accrued interest will be paid on April 1^st and interest will have to be accrued monthly. It will be paid on July 2^nd. Bank charges paid to the bank are $200 per month.
• Office expenses will be $100 per month, plus HST.
• Depreciation expense will have to be calculated monthly.
• Supplies of $200 (plus HST) per month will be purchased as they are used.
• The prepaid airline ticket will be used in May.
• Monthly maintenance is $800 per month + HST
• There are no professional fees incurred in this quarter.
• Ignore WSIB expense and income tax expense
• When preparing your cash budget, there is no minimum cash balance required.

• Must complete a budgeted income statement, cash budget and proforma balance sheet for all 3 months plus a total column for the quarter. You do not need a total column for the Balance Sheet.

  You MUST have a separate data sheet that includes all your calculations. You must use formulae wherever possible.

Remember that you have to keep track of HST charged on sales and HST paid on purchases.

Revenue Consulting fees Other revenue Total Revenue 70,355.00 0.00 70,355.00 TOTAL REVENUE 70,355.00 EXPENSE Expenses Bad debts Bank charges & interest CPP expense Depreciation expense El expense Insurance Office expenses Professional fees Rent Repairs & maintenance Salaries Supplies Telephone Travel WSIB expense Corporate income tax expense Total expenses 0.00 754.53 2,632.80 2,525.00 1,307.25 0.00 84.00 2,300.00 6,000.00 2,400.00 53,161.05 550.00 2,975.00 0.00 0.00 0.00 74,689.63 TOTAL EXPENSE 74,689.63 NET INCOME 4,334.63 Balance Sheet As at 2022-03-31 Current Assets LIABILITY EQUITY 166.00 Current liabilities Equity Petty Cash BNS Cash 6,055.55 14,093.59 Common stock 10.00 Total Cash 6,221.55 Bank operating line Accounts payable Wages payable 0.00 Accounts Receivable 35,996.15 0.00 0.00 Unearned revenue 0.00 Allowance for doubtful accounts Net accounts receivable Retained earnings 0.00 Current Earnings -4,334.63 Total shareholder's equit -4,324.63 TOTAL EQUITY -4,324.63 LIABILITIES AND EQUITY 48,592.70 35,996.15 450.00 0.00 42,667.70 4,000.00 Office supplies Prepaid expenses Total current assets Office equipment Accumulated dep'n office equipment Net office equipment Computers Accumulated dep'n computers Net computers -800.00 WSIB payable 0.00 CPP payable 1,864.52 El payable 796.80 Income tax pe 10,351.58 Total source deductions pa 13,012.90 HST charged 3,686.15 ITC's -3,006.25 Net HST payable 679.90 Total current liabilities 27,786.39 Long-term debt Due to shareholder 24,990.00 3,200.00 3,000.00 -1,000.00 2,000.00 Software 1,450.00 Accumulated dep'n software -725.00 Interest Payable 140.94 Net software 725.00 Total current liabilities 25,130.94 Total capital assets 5,925.00 TOTAL LIABILITY 52,917.33 TOTAL ASSET 48,592.70