The following information has been gathered for Dunn Manufacturing, Inc.Ulysses R. Dunn, the founder, manager, and majority shareholder, is trying to get a "handle" on financial planning.Use the following information to create a monthly cash budget, monthly pro forma income statements, and monthly pro forma balance sheets for the next 2 months (April and May) for Dunn Manufacturing and U.R. Dunn.

1.All sales are on credit. The payment pattern for revenues is estimated to be as follows: 15% is collected within 15 days and an additional 15% is collected same month, 10% are paid for one month after the sale, 45% are paid for two months after the sale, 15% are paid for three months after the sale.

2.The current interest rate on Notes Payable is .25% per month of the balance (calculated based upon prior month's ending balance). No principal payments will be paid during April and May.

3.Dunn purchases raw materials each month in the amount of 25% of the predicted sales for the month after next, and 50% of next month's predicted sales. It is assumed that purchases are all on account and that the firm pays 100% of the purchases next month. The cost of raw materials averages 65% of sales.

????12000????????????????1??

5.?????????2?????????

????????????5225???

7.????????????75?????

8.????????????????0.5?????????????

9.?????????????????????5??

?????????10???????

11.??????????????5??APR???????????????????????

12.?????????39???????????????????????????

13.???????????12.5????

14.??1??2??3????????32????345,000???365000????4?????????????

4??500??

???$ 325

???$ 350

???$ 275

The Balance Sheet for Dunn Manufacturing as of March 31 is as follows: (Stated in 1,0005) .1 Assets Liabilities and Owners' Equity Cash S 210.00 Accounts Payable $ 177.00 Accounts Receivable 256.00 Notes Payable 219.00 Inventory 137.00 Accrued Taxes - Total Current Assets $ 903.00 Accrued Interest Total Current Liability $ 395.00 Other Assets 5 58.00 L-T Debt 650.00 Net Fixed Assets 5 674.00 Total Liabilities 51.045.00 Total Assets 5 1,635.00 Com mon Stock 150.00 Retained Earnings 439.00 Total Stockholders' Equity 3 589.00 Total LiabilitySL Stock holders' Equity $1,635.00