problems 10,11 and 12 are to yield the smae estimated need for financing -provided we dont make any mistakes.

Woving Fwrure Financtaf Priformance 10. The treasurer of Westmark Industrial. Inc, a wholesale distribetor fo bousehold appliances, wants to estimate his company's cash balanceg household appliances, Wants to estimate his company's cash- balof for the first three months of 2018 . Using the following information, 0. for the first a monthly cash budget for Westmark for January through Mref 2018. Westmark's sales are 20 percent for cash, with the rest on 30dyy credit terms. Its purchases are all on 60 -day credit terms. Does it appese from your results that the treasurer should be coneerned about investise from your results that the treasurer should 11. Continuing problem 10, Westmark Industrial's annual income statement and balance sheet for December 31, 2017, are shown next. Additional information about the company's accounting methods and the treasurer's expectations for the first quarter of 2018 appear in the footnotes. Chapter 3 Finuncial Forecusine 107 2 Selling and adninistrative expenser ecosist entirely of waecs. 3 Depreciation is at the rate of 530,000 per quarte "Miscellancous accruals are not expecsed to change in the first quarter 55210 dae in March 2018. No payments for remainder of year. a. Use this information and the information in problem 10 to construct a pro forma income statement for the first quarter of 2018 and a pro forma balance sheet for March 31,2018 . What is your estimated external financing need for March 31 ? b. Does the March 31,2018 estimated external financing equal your cash surplus (deficit) for this date from your cash budget in problem 10? Should it? c. Do your pro forma forecasts tell you more than your cash budget does about Westmark's financial prospects? d. What do your pro forma income statement and balance sheet tell you about Westmark's need for external financing on February 28, 2018? 12. Based on your answer to question 11, construct a first-quarter 2018 cash flow forecast for Westmark Industrial