Sports Fanatic Company is a retail sporting goods store that uses accrual accounting for its records. Information on Sports Fanatics operations are as follows:

1.		The store has budgeted sales at $220,000 for January and $200,000 for February.
2.		It expects collections to be 60% in the month of sale and 38% in the month following the sale. It expects 2% of sales to be uncollectible.
3.		Gross margin is 25% of sales.
4.		It purchases a total of 80% of the merchandise for resale in the month before the month of sale and 20% in the month of sale. It makes payments for merchandise in the month after it purchases it.
5.		Other expected monthly expenses to be paid in cash amount to $22,600.
6.		Annual depreciation is $216,000.
7.		Sports Fanatics balance sheet at the close of business on December 31 follows.

SPORTS FANATIC COMPANY Balance Sheet December 31
Assets
Cash		$22,000
Accounts receivable (net of $4,000 allowance for uncollectible accounts)		76,000
Inventory		132,000
Property, plant, and equipment (net of $680,000 of accumulated depreciation)		870,000
Total assets		$1,100,000
Liabilities and Shareholders Equity
Accounts payable		$162,000
Common shares		800,000
Retained earnings		138,000
Total liabilities and shareholders equity		$1,100,000

Prepare the income statement for January. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) SPORTS FANATIC COMPANY Pro Forma Income Statement For the Month of January For the Month of January $ Prepare the budgeted balance sheet for January. (List Current Assets in order of liquidity.) SPORTS FANATIC COMPANY Pro Forma Balance Sheet As at January 31 Assets Liabilities and Shareholders' Equity