[The following information applies to the questions displayed below.]

The following trial balance was drawn from the records of Havel Company as of October 1, year 2.

Cash	$	16,000
Accounts receivable		60,000
Inventory		40,000
Store equipment		200,000
Accumulated depreciation					$	76,800
Accounts payable						72,000
Line of credit loan						100,000
Common stock						50,000
Retained earnings						17,200
Totals	$	316,000			$	316,000

b. Supply the missing information in the following pro forma income statement and balance sheet for the fourth quarter of year 2. The statements are prepared as of December 31, year 2.

RE ! Required information [The following information applies to the questions displayed below.] The following trial balance was drawn from the records of Havel Company as of October 1, year 2. $ 16,000 60,000 40,000 200,000 Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Totals $ 76,800 72,000 100,000 50,000 17,200 $316,000 $316,000 c. Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget. (Negative amounts should be indicated by a minus sign.) $ Cash Budget for October Beginning cash balance Add: Cash receipts Cash available Less: Payments For inventory purchases For S&A expenses 16,000 60,000 76,000 118,938 % 50,100 Total budgeted payments Cash surplus (shortage) Will Havel need to borrow money during October? 169,038 $ 26,938 Yes RE ! Required information [The following information applies to the questions displayed below.] The following trial balance was drawn from the records of Havel Company as of October 1, year 2. $ 16,000 60,000 40,000 200,000 Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Totals $ 76,800 72,000 100,000 50,000 17,200 $316,000 $316,000 c. Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget. (Negative amounts should be indicated by a minus sign.) $ Cash Budget for October Beginning cash balance Add: Cash receipts Cash available Less: Payments For inventory purchases For S&A expenses 16,000 60,000 76,000 118,938 % 50,100 Total budgeted payments Cash surplus (shortage) Will Havel need to borrow money during October? 169,038 $ 26,938 Yes