Use the data provided and the budgets you prepared from JKL Corporation in Assignments 6.1 and 6.2 to help you develop the following projected financial statements:

1- Pro forma statement of condition as of June 30, 20xx. (10 points)

2- Proforma income and expense statement for the quarter ended June 30, 20xx.

3- Pro-forma statement of cash flows for the quarter ended June 30, 20xx.

Then, complete the following table of financial analysis rates. It shows the calculation to obtain each rate.

Ratios	June 20xx	Calculation
current ratio
Acid-test ratio
accounts receivable turn-over
average collection period
inventory turn-over
average sales period)
7. debt/assets
debt-equity ratio
times interest earned ratio
gross margin percentage
Net margin
(ROI: return on investment)

A. Certain data of the Statement of position (Balance Sheet) as of March 31, 20xx: Dr Cr Cash $20,000 (DR) Accounts receivable $64,000 (DR) Inventory $15,400 (DR) Buildings and equipment (net of depreciation) $225,000 (DR) Accounts payable $23,400 (CR) Long-term debts $90,000 (CR) Common shares- principal $150,000 (CR) Retained Earnings $61,000 (CR) Totals $324,400 (DR) $324,400 (CR) B. The projected and actual sales for various months of 20xx are: March (reals) $80,000 April $83.400 May $69,500 June $82,900 July $64,600

1- Monthly sales are 20% cash and 80% credit. Credit sales from the previous month are collected in full in the following month (therefore, what is in accounts receivable at the end of March is 80% of March sales). 2- The gross profit margin generated by the corporation on its sales is 38%. 3- Each month's ending inventory is equal to 25% of the next month's budgeted cost of sales. 4- 40% of monthly merchandise purchases are paid in the month of purchase and the remainder in the month following the purchase. 5- Expected monthly expenses are: salaries, $10,200; advertising, $6,300 per month; and remaining expenses (except depreciation) represent 8% of sales. Assume that these expenses are paid every month (nothing is due at the end of the month). 6- Depreciation expense is $10,000 for the quarter and includes the portion that corresponds to assets acquired during the period. 7- Equipment was purchased in cash: $25,200 in April and $19,100 in May 20xx. 8- Management wants to maintain a minimum cash balance at the end of each month of $8,000. 9- When the company has a need for cash, it can borrow from a local bank in $1,000 increments at the beginning of each month up to a borrowing ceiling of $20,000. The interest rate the bank charges on these loans is 1% per month and the interest is paid the next month (we presume that it is not compound interest and that each loan is made at the end of the month). The company paid dividends of $5,200 in June.

Budgeted purchases Cash Purchase (40%) (1) Accounts Payable Paid (ii) Total Disbursment (i)+(ii) Salaries Schedule of Purchase disbursements April May Total $47,080.50 $45,167.00 $48,561.50 $140,809.00 $18,832.20 $18,066.80 $19,424.60 $56,323.60 $23,400.00 $28,248.30 $27,100.20 $78,748.50 $42,232.20 $46,315.10 $46,524.80 $135,072.10 Advertising Other Expenses Total Selling and administrative Paid June Selling and administrative expense disbursements for the quarter April May June $10,200 $6,300 $6,672 $23,172 Total $10,200 $10,200 $30,600 $6,300 $6,300 $18,900 $5,560 $6,632 $18,864 $22,060 $23,132 $68,364 Sales Cash Sales (1) Credit Sales Collection from Accounts Receivable (ii) Total Collection from Sales (i)+(ii) Sales Cost of Sales (Salesx62%) Add:Ending Inventory Total Needed Schedule of Sales Collection April May Less:Beginning Inventory Budgeted purchases $83,400 $16,680 $66,720 $64,000 $80,680 Purchase Budget April $69,500 May June $13,900 $82,900 $235,800 $47,160 $55,600 $66,320 $188,640 $66,720 $55,600 $186,320 Total $16,580 $80,620 $72,180 $233,480 Total $83,400.00 $69,500.00 $82,900.00 $235,800.00 $51,708.00 $43,090.00 $51,398.00 $146,196.00 $10,772.50 $12,849.50 $10,013.00 $10,013.00 $62,480.50 $55,939.50 $61,411.00 $156,209.00 $15,400.00 $10,772.50 $12,849.50 $15,400.00 $47,080.50 $45,167.00 $48,561.50 $140,809.00 June 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 Particulars Beginning Cash Balance Cash Collections Total Cash Available (A) Less Outlays; Shoppings Adminstrative and Sales expenses Purchase of Equipment Dividends Total Disbursements(B) Cash excess (deficiency) (A-B) Loan. Loan Payments. Interests Financing Ending Cash Balance Cash Budget April 20,000 79,700 99,700 45,212 20,515 22,100 87,827 11,873 0 0 0 0 11,873 May 11,873 77,700 89,573 54,577 20,155 12,700 87,432 2,141 6000 6000 8,141 June 8,141 75,620 83,761 53,928 20,659 2,700 77,287 6,474 2000 -60 1940 8,414 Total 20,000 233,020 253,020 153,717 61,329 34,800 2,700 252,546 474 8000 0 -60 7940 8,414