Prepare cash budget, balance sheet and income statement

You are the Business Manager of Garden Sales, Ine and the bank has asked you to prepare a casa aud cummer: with budget/forecast and Pro-Forma Balance Sheet and Income Statement for the next quarter. the various departments, you have come up with the following information/assumptions: - November 2017 and December 2017 sales were $110,000, each month - Sales for the following three months will increase by $2,000 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 - Depreciation Expense is $3,300, per month and prepaid rent is amortized at $1,500 per month - Of the month's sales, 15% is collected as cash with the remaining placed on customer's account. - Customer's accounts are usually paid off over a 2 month period ( 50% each month) beginning the month following the sale - To maintain sufficient inventory, the company purchases 100% of the next month's cost of sales. They pay for 60%, in cash, in Jan to Bad Debt Exp. in the month they purchase and pay the remaining 40%s in the following month. - In March, the company is planning on replacing an outdated machine. The new machine will cost $20,000. The old machine originally cost $15,000, with a Net Book Value of $4,000 and will be sold for $6,500 - The Company does not pay or accrue for taxes until the end of December. - The Company plans to pay a cash dividend of $2,000 at the end of March. - Assume ail operating expenses incurred during the month are paid, in cash, during the same month incurred interest is Accrual/Expensed principal payment of $8,000, plus interest of $1,500, at the end of March. For this note, no - The minimum cash month end balance required a tan30,2018. Interest is %% 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 accrued on the working capital line effective the beginning of the month when money is received. Prepare a detailed Cash Budget/Forecast for each month of Jan, Feb and March, 2018 Prepare an Income Statement for each period Jan-Mar 2018 (in good form) Prepare a Balance Sheet as of March 31, 2018 (in good form) Ithough you may use Excel, this assignment must be tumed in as aHYND-WRITTEN document. This sheet must be turned in Check Figures for 03/31 with your assignment. No exeentions. Net Income: (3mo)$16,139.6) Inventorv (3/31): $76.700