Using the revised year one budget schedules and financial statements, comment on the differences between the originally budgeted information under constant demand prepared in part two and the revised budgeted cash budget, income statement and balance sheet provided. Have dramatic changes occurred in predicted profit, financial position, and cash flows and if so, what are the primary causes of these changes? Discuss the major differences in beginning of year projections and mid-year projections now that actual data is available for the first two quarters. Hint: you may want to calculate percentage of change in items on the cash budget, income statement and balance sheet (horizontal rate of change) comparing the original budget to the mid-year revised budget.

Appendix D-12 Water Play, Inc. Revised Balance Sheet December 31, 20XX Assets Currrent assets: \begin{tabular}{l|r|r|} \hline Cash & 66,618,587.694 \\ \hline Accounts receivable & 175,500,000 & \\ \hline Raw material inventory & 13,500,000 & \\ \hline Finished goods inventory & 34,096,409.567 & \\ \hline Total current assets & & 289,714,997.261 \\ \hline Noncurrent assets: & & \\ \hline Land & 12,000,000 & \\ \hline Buildings & 72,000,000 & \\ \hline Equipment & 140,000,000 & \\ \hline Less: Accumulated depreciation & 25,550,000 & \\ \hline Total Noncurrent Assets & & 198,450,000 \\ \hline Total Assets & & 488,164,997.261 \\ \hline \end{tabular} Liabilities Current liabilities: Accounts payable Noncurrent liabilities: Note payable Total liabilities 199,950,000150,000,000 Stockholders' Equity Common stock (\$1 par value, 25 million shares authorized, 3 million shares issued and outstanding Paid in capital Total contributed capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Appendix D-11 Water Play, Inc. Revised Income Statement For Year Ended December 31, 20XX Sales revenue Less Cost of goods sold Gross margin Operating expenses: Selling and administrative expenses Bad debts expense Total operating expenses Net operating income Interest expense Net income 531,418,875166,442,999.71723,588,202.456142,854,797.261 Appendix D-10 Water Play, Inc. Revised Cash Budget December 31, 20XX