You are the Business Manager of Garden Sales, Inc and the bank has asked you to prepare a cash and earnings

budget$/$forecast and Pro$-$Forma Balance Sheet and Income Statement for the next quarter. After your discussion with

the various departments, you have come up with the following information$/$assumptions:

November $2022$ and December $2022$ sales were $$105,000,$ each month

Sales for the following three months will decrease by $$2,500$ each month, beginning January through Aprii.

Cost of Goods Sold represents $60\%$ of sales, each month.

Cash Operating Expenses are $30\%$ of sales, exclusive of Depreciation expense

Depreciation Expense is $$2,000,$ per month and prepaid rent is amortized at $$1,200$ per month

Of the month's sales, $30\%$ is collected as cash with the remaining placed on customer's account.

Customer's accounts are usually paid off over a $2$ month period $(50\%$ each month$)$ beginning the month following the sale

The CFO just informed you that one customer has filed bankruptcy therefore, $$3,500$ from Nov A$/$R Sales will be written off

in Jan to Bad Debt Exp.

To maintain sufficient inventory, the company purchases $100\%$ of the next month's cost of sales. They pay for $60\%,$ in

cash, in the month they purchase and pay the remaining $40\%$ in the following month.

In March, the company is planning on replacing an outdated machine. The new machine will cost $$20,000.$ The old

machine originally cost $$12,000,$ with a Net Book Value of $$5,000$ and will be sold for $$3,000.$

The Company does not pay or accrue for taxes until the end of December.

The Company plans to pay a cash dividend of $$2,000$ at the end of March.

Assume all operating expenses incurred during the month are paid, in cash, during the same month incurred

The Note Payable requires a principal payment of $$8,300,$ plus interest of $$800,$ at the end of March. For this note, no

interest is Accrued$/$Expensed until interest is paid

The minimum cash month end balance required according to the bank agreement is $$60,000$ for any given month

beginning Jan $31,2023.$

A working capital line of credit is available, up to $$50,000,$ and if needed, money is taken out at the beginning of the

month. Interest is $1\%$ per month.

Interest is paid on the working capital line when principal payments are paid on the debt; at the end of any given month.

Interest is accrued on the working capital line effective the beginning of the month when money is received.

Prepare a detailed Cash Budget$/$Forecast for each month of Jan, Feb and March, $2023$

Prepare an Income Statement for each period Jan$-$Mar $2023($in good form$)$

Prepare a Balance Sheet as of March $31,2023($in good form$)$

Although you may use Excel, this assignment must be turned in as a HAND$-$WRITTEN document.

This sheet must be turned in

with your assignment. No

exceptions.

Check Figures for $03/31$

Net Income $(3$mo$)$ $$13,857\mathrm{.}48$

Total Assets $$1,037,650\mathrm{.}00$