You are the Business Manager of Garden Sales, Inc and the bank has asked you to prepare a caster your discussion with budget/forecast and Pro-Forma Balance Sheet and Income Statement for the next quarter. the various departments, you have come up with the following information/assumptions: November 2017 and December 2017 sales were $110,000, each month Sales for the following three months will increase by $2,200 each month, beginning January through April. Cost of Sales represents 65% of sales, each month. - Cash Operating Expenses are 18% of sales, exclusive of Depreciation expense - Depreciation Expense is $3,300, per month and prepaid rent is amortized at $1,500 per month of the month's sales, 15% 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, $10,500 from Nov A/R Sales will be written 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 ca: 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 - In March, the company is planning on replacing an outdated machine.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 $40,000. The old macl originally cost $13,000, with a Net Book Value of $4,000 and will be sold for $6,000 - 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 $8,000, plus interest of $1,500, at the end of March. For this note, no interest is Accrual/Expense until interest is paid - The minimum cash month end balance required according to the bank agreement is $65,000 for any given month begin Jan 30, 2018. - A working capital line of credit is available, up to $25,000, and if needed, money is taken out at the beginning of the mo Interest is %% per month. - Interest is paid on the working capital line when principal payments are paid on the debt; at the end of any given monts - Interest is accrued on the working capital line effective the beginning of the month when money is received. 1. Prepare a detailed Cash Budget/Forecast for each month of Jan, Feb and March, 2018 2. Prepare an Income Statement for each period Jan-Mar 2018 (in good form) 3. Prepare a Balance Sheet as of March 31, 2018 (in good form) 4. Although you may use Excel, this assignment must be turned in as a HAND-WRITTEN document