Prepare the statements for Q2 (April 1 - June30) based on the following ASSUMPTIONS: April's sales, $100,000 (instead of $55,000); May's sales, $150,000 (instead of $60,000); and, June's sales, $200,000 (instead of $60,000). Indicate your answers on page 2 and show your work on page 3. EVERYTHING ELSE STAYS THE SAME AS IN THE QUESTION IN THE NOTES. PROJECTED (estimated) sales for 2022 (in '000s): January $55 July $80 February $55 August $550 March $55 September $690 April $100 (instead of $55) October $830 May $150 (instead of $60) November $850 June $200 (instead of $60) December $960 Since we completed Quarter 1 in class, start with those balances (see next page) and Prepare Pro- Forma financial statements for the second quarter of 2022. 2 ASSIGNMENT #2 Chapter 4 (Part 2) NAME (Last, First):____________________________ (12 marks) Student No.:______________________ XYZ Company PRO FORMA Quarterly Income Statements Q1 Q2 Sales $165,000 Cost of goods sold 115,500 Gross profit 49,500 Operating expenses 138,000 Depreciation expense 131,250 Income before interest & taxes (219,750) Interest expense 25,000 Income before taxes (244,750) Income tax (expense)/recovery 122,375 Net Income $(122,375) PRO FORMA Quarterly Balance Sheets Q1 Q2 Cash $815,500 Accounts receivable 110,000 Inventory 947,000 Plant & equipment 10,500,000 Accumulated depreciation (4,031,250) Total Assets $8,341,250 Accounts payable $125,000 Line of credit 0 Interest payable 25,000 Taxes payable (122,375) Current portion of LT debt 200,000 Long-term debt 3,400,000 Common shares 1,800,000 Retained earnings 2,913,625 Total Liabilities & Sh. Equity $8,341,250