1. Provide 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.

Income Statement 01/01/2019 to 03/31/2019
REVENUE
Revenue
Consulting Fees	70,355.00
Other Revenue	0.00
Net Revenue		70,355.00
Total Revenue		70,355.00
TOTAL REVENUE		70,355.00
EXPENSE
Expenses
Bad debts	0.00
Bank Charges & Interest	520.00
CPP Expense	2,632.80
Depreciation Expense	0.00
Depreciation expense- Computer	250.00
Depeciation Expense- Software	125.00
Depreciation Expense- Office Eq	200.00
EI Expense	1,307.25
Insurance	0.00
Office Expense	84.00
Professional Fees	2,300.00
Rent	9,000.00
Repairs & Maintenance	2,400.00
Salaries	56,250.00
Supplies	550.00
Telephone	2,975.00
Travel	0.00
WSIB Expense	0.00
Corporate income tax Expense	0.00
Interest expense	110.03
Total Expenses		78,704.08
Net Income		78,704.08
TOTAL EXPENSE		78,704.08
NET INCOME		-8,349.08
Generated On: 02/23/2022

Balance Sheet As at 03/31/2019
ASSET
Current Assets
Petty Cash	166.00
BNS Cash	4,558.68
Total Cash		4,724.68
Accounts Receivable	35,996.15
Allowance for doubtful accounts	0.00
Net Accounts Receivable		35,996.15
Office Supplies	450.00
Prepaid Expenses	0.00
Net Office Expenses		450.00
Total Current Assets		41,170.83
Capital Assets
Office Equipment	4,000.00
Acc'd Dep'n Office Equipment	-200.00
Net Office Equipment		3,800.00
Computers	3,000.00
Acc'd Dep'n Computers	-250.00
Net Computers		2,750.00
Software	1,450.00
Acc'd Dep'n Software	-125.00
Net Software		1,325.00
Total Capital Assets		7,875.00
TOTAL ASSET		49,045.83
LIABILITY
Current Liabilities
Bank Operating Line	20,000.00
Accounts Payable	0.00
Interest Payable	110.03
Wages Payable	0.00
Unearned Revenue	0.00
WSIB Payable	0.00
CPP Payable	1,864.52
EI Payable	796.80
Income Tax Payable	3,873.66
Total Source Deductions Payable		26,645.01
HST Charged on Sales	9,146.15
ITC's	-3,396.25
Net HST Payable		5,749.90
Total Current Liabilities		32,394.91
Long-term Debt
Due to Shareholder	24,990.00
Net Shareholders		24,990.00
Total Liabilities		24,990.00
TOTAL LIABILITY		57,384.91
EQUITY
Shareholders Equity
Common Stock	10.00
Retained Earnings	0.00
Net Shareholders Equity		10.00
Total Shareholders Equity		10.00
Current Earnings		-8,349.08
TOTAL EQUITY		-8,339.08