You are the VP of Planning at Awesome, LLC. You are required to prepare a 2022 budget for the company.

Required: Create a "pro forma" balance sheet as of December 31,2021

Information: Awesome, LLC. is a wholesale electrical distributor. The following projections have been made for the 2021 budget: Sales Forecast January, 2021 February March April May June July August September October November December $200,000 $220,000 $180,000 $210,000 $200,000 $180,000 $175,000 $170,000 $185,000 $200,000 $210,000 $220,000 Cost Data: Average Purchase Price of Product: 60% of selling price Commission to Sales People: 10% of sales Other Operating Expenses: $42,000 per month, including $2,000 depreciation, not including interest expense (if any.) January, 2022 $230,000 Awesome, LLC Projected Balance Sheet at December 31, 2020 Assets Equities Cash $ 20,000 Accounts Payable Accounts Receivable 110,000 (for merchandise) $ 80,000 Inventory 150,000 Common Stock 300,000 Building & Equipment, net 200,000 Retained Earnings 100,000 Total $480.000 Total S480,000 Other Information: a. Awesome maintains inventory at 90% of the coming month's sales requirements. b. Sales are collected 40% in the month of sale, 58% in the following month. c. Bad debts are written off immediately, if not collected in the month following the sale. d. Purchases are paid 30% in the month of purchase, 70% in the following month. e. All other expenses requiring cash are paid in the month incurred. f. The board of directors plans to declare a $4,000 dividend on May 10, 2021, payable June 2, 2021. g. The company wishes to maintain a minimum cash balance of $15,000. A line of credit has been negotiated, to be used only when necessary, at an interest rate of 12%. h. No capital purchases are planned. 2