You are a Senior Managerial Accountant at Wild Water Sports Inc., a company that makes water sporting equipment. The company know that creating a budgeted income statement is important for the company financial position. Your boss has asked you to prepare a budgeted income statement for the first quarter based on the given information.

1. Prepare a budgeted income statement for this first quarter.
2. Does it appear that the Company will remain solvent, or could the company be heading for a cash crisis?
3. Use the budgeted income statements from part 1 to recommend changes Wild Water Sports Inc should make to improve their revenue or cash flow. Explain ?