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Week Five Project Problem Two a. Using the information provided, construct a monthly cash budget for July through September 2023. Based on your analysis, will

Week Five Project Problem Two a. Using the information provided, construct a monthly cash budget for July through September 2023. Based on your analysis, will TopNotch Technology enjoy a surplus of cash, or require external financing? What is the amount? Enter the amount in cell J3. b. Construct a pro forma income statement for the first fiscal quarter of 2023 (July through Sept. 2023). Express the amounts in the same manner (thousands) as illustrated in the June 30th income statement. Hint: Apply a denominator of 1,000 where appropriate in the pro forma income statement. TopNotch Technology Corp. Facts and assumptions Sales (20 percent for cash, the rest on 30-day credit terms): 2023 Actual April 87,000 D Purchases (all on 60-day terms): 2023 Actual April 120,000 May 103,000 Sheet1 May 142,000 Principal payment on debt due in September Interest due in September Salaries payable monthly --- 7 June 245,000 ady Accessibility: Investigate June 225,000 July 145,000 July 69,000 2023 Projected August 76,000 2023 Projected August 42,000 25,700 12,000 30,000 10.000 September 106,000 September 38,000 a. Cash receipts: Sales for cash Collections from credit sales Total cash receipts Cash disbursements: Payment for purchases Salaries Interest payments Principal payments Dividends Tax payments Total cash disbursements
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1 Cost of goods sold consists entirely of items purchased during the 2 Selling and administrative expenses consist entirely of salaries. 3 Depreciation is straight-line at the rate of $5,000 per quarter. 4 Accrued expenses are not expected to change in the next quarter. 5 525.7 due September 2023. No payments for remainder of year. a. Using the information provided, construct a monthly cash budget for July through September 2023. Based on your analysis, will TopNotch Technology enjoy a surplus of cash, or require external financing? What is the amount? Enter the amount in cell J3. b. Construct a pro forma income statement for the first fiscal quarter of 2023 (July through Sept. 2023). Express the amounts in the same manner (thousands) as illustrated in the June 30th income statement. Hint Apply a denominator of 1,000 where appropriate in the pro forma income statement. TopNotch Technology Corp. Facts and assumptions Sales (20 percent for cash, the rest on 30 -day credit terms): Purchases (all on 60-day terms) TopNotch Technology Corp. INCOME STATEMENT (\$ thousands) July 1,2023 - September 30,2023 Net sales Cost of goods sold Gross profit Selling and admin. expense Interest Depreciation Net profit before tax Tax at 33% Net profit after tax Dividends Additions to retained earnings \begin{tabular}{l} Cash receipts: \\ Sales for cash \\ Collections from credit sales \\ Total cash receipts \\ Cash disbursements: \\ Payment for purchases \\ Salaries \\ Interest payments \\ \hline Principal payments \\ \hline Dividends \\ Tax payments \\ Total cash disbursements \\ \hline Net cash receipts (disbursements) \\ \hline Determination of cash needs: \\ \hline Beginning cash \\ \hline Net receipts (disbursements) \\ \hline Ending cash \\ \hline Minimum cash desired \\ \hline Cash surplus (deficit) \end{tabular}

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