Problem: Hannah & Maggie Inc. Hannah & Maggie are independent recording artists who sell their music wholesale for a living. In December Hannah found a Neumann record cutting machine on sale for $25,000. The machine can be used to transfer digital music to vinyl records. Hannah and Maggie think their new album would sound amazing (and sell well) as an LP, but they need a loan to purchase the machine. A local bank is agreeable, but requires both current (2019) and budgeted (3 months in 2020) financial statements.

Based on the following information from Hannah & Maggie, construct the bankers report using the excel spreadsheet provided (seriously, use the spreadsheet!)

Chapter 13 Assignment- Fall 2019 Hannah& Maggie Inc Using the information provided on the next page and the related spreadsheet Complete the budget worksheet for Hannah & Maggie Inc. a. b. Prepare a budgeted Income Statement for the three-month period ending March 31 2020 Prepare the budgeted Balance Sheet for March 31, 2020. C. Complete the above and turn in this cover sheet and a copy of your spreadsheet January's cash disbursement for inventory purchases 2. Cash available at 3/1/2020 March 31, 2020 cash balance 3. March 31, 2020 accounts payable 4. Net income for the period 1/1/2020 to 3/31/2020 Balance Sheet December 31, 2019 2020 Sales Forecast 1 January 2 February 3 rch 4 April 5 May 50,000 31,000 12,000 Cash S 74,000 82,000 58,000 Accourts Receivable Invertory S Fixed Assets 37,000 S 130,000 S 54,000 80,000 TotalAssets 6 June S 67,000 7 July S 70,500 Accounts Payable Acerued Credit Fees 22,500 9,200 46,800 51,500 $ 130,000 Common Stock Retainad Earnings Total Liab & Equity Additional Information: a. Everyone who buys H&Ms music pays with a credit card H&M collect 35% in the month of the sale and 65% in the month after the sale. b. The credit card sales al so mean that H&M incur a 6.2% sales fee. The sales fee is due one month after the sale The cost of sales is 42% of (current month) sales c. d Tomake sure they don't run out of music to sell at shows, Hannah & Maggie plan to maintain inventory at the sales requirements (COS) for the next 2 months' budgeted s Hannah & Maggie use a aredt cardfor all their purchases; the duo pays off their balance in full the following month. e. f. Hannah & Maggie pay their manager 5% of sales each month In addition to the variable management cost, the duo incurs fixed expenses of $22,000 g. per month, $1,500 of whi ch is for depreciation of fixed assets O nFocus