Your group has been asked to produce pro forma financial statements for a small local bicycle shop. You are asked to provide a gross profit review, pro forma income statement and pro forma balance sheet. You also recognize you will need to perform other calculations to arrive at the required outputs. You have been given the information below to get you started.

Sales projection for the next 12 months

Product	Sale Price	Quantity
Bicycles	$1,500	150
Helmets	$50	80
Cycling Shoes	$125	50

Beginning Inventory and Value

Product	Cost	Quantity
Bicycles	$750	25
Helmets	$20	10
Cycling Shoes	$50	5

Ending inventory requested at 10%

Cost per item is expected to increase by 15%

Cash Budget Sales Forecast and Monthly Cash Payments by Mont

Month	Sales	Payments
January	$5,000	$7,000
February	$5,500	$7,600
March	$13,800	$10,500
April	$25,000	$17,800
May	$28,400	$18,200
June	$45,000	$22,800
July	$38,000	$23,800
August	$31,250	$21,200
September	$10,000	$8,000
October	$12,500	$9,500
November	$9,800	$7,800
December	$11,000	$9,700

Cash collections at 20% of the current month and 80% collected the next month.

Assume a beginning cash balance of $5,000.

Monthly loan repayment is $4,250 from financing in the previous year.