Using the cash budget worked out in 5-1 and the following additional information, prepare a pro forma income statement for the hughes company for the six months ending June 30, 2013. The companys tax rate is 50%. Depriciation charges are 500 a month. the company had an inventory of 1000 at the close of 2012 and wishes to increase that to 8000 by the end of June. Hint: I know the answer is a NIAT of 13500 the teacher gave us that much, I just dont know how to get it. I will post the additional info in the comments.

	Jan'13	Feb'13	Mar'13	Apr'13	May'13	Jun'13
Cash Balance	$ 10,000.00	$ 14,000.00	$ 18,000.00	$ 10,000.00	$ 11,000.00	$ 10,000.00
Cash from credit sales last month	$ 20,000.00	$ 20,000.00	$ 20,000.00	$ 20,000.00	$ 20,000.00	$ 20,000.00
Cash paid for credit purchases last month	$ -10,000.00	$ -10,000.00	$ -10,000.00	$ -10,000.00	$ -10,000.00	$ -10,000.00
Wages and Salaries	$ -3,000.00	$ -3,000.00	$ -3,000.00	$ -3,000.00	$ -3,000.00	$ -3,000.00
Factory overhead	$ -1,000.00	$ -1,000.00	$ -1,000.00	$ -1,000.00	$ -1,000.00	$ -1,000.00
Selling expenses	$ -1,500.00	$ -1,500.00	$ -1,500.00	$ -1,500.00	$ -1,500.00	$ -1,500.00
Monthly admin expenses	$ -500.00	$ -500.00	$ -500.00	$ -500.00	$ -500.00	$ -500.00
New machine purchase (May)	$ -	$ -	$ -	$ -	$ -10,000.00	$ -
Income tax(March)	$ -	$ -	$ -5,000.00	$ -	$ -	$ -
Dividend Payment (March)	$ -	$ -	$ -10,000.00	$ -	$ -	$ -
Semi annual Interest payment (June)	$ -	$ -	$ -	$ -	$ -	$ -1,000.00
Cash balance ending	$ 14,000.00	$ 18,000.00	$ 7,000.00	$ 14,000.00	$ 5,000.00	$ 13,000.00
Additional Borrowing	$ -	$ -	$ 3,000.00	$ -	$ 5,000.00	$ -
Return Borrowing	$ -	$ -	$ -	$ -3,000.00	$ -	$ -3,000.00
Net Cash balance ending	$ 14,000.00	$ 18,000.00	$ 10,000.00	$ 11,000.00	$