FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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All sales are made on credit terms of net 30 days and are collected the following month and no
The annual interest rate on outstanding long-term debt and bank loans (notes payable) is 12%. There are no capital expenditures planned during the period, and no dividends will be paid. The company’s desired end-of-month cash balance is $80,000. The president hopes to meet any cash shortages during the period by increasing the firm’s notes payable to the bank. The interest rate on new loans will be 12 percent.
- Prepare monthly pro forma balance sheets at the end of October, November, and December, 2020.
Transcribed Image Text:Month
Sales Forecast
Balance Sheet as of September, 30th 2020
Cash
Accounts Receivable
October
1,000.00
$
50,000.00
$ 700,000.00
$ 500,000.00
$ 750,000.00
$2,000,000.00
November
1,500.00
December
$ 3,000.00
Inventories
Net fixed assets
Total Assets
Accounts Payable
Notes Payable
$ 800,000.00
$ 400,000.00
$1,200,000.00
$ 800,000.00
$2,000,000.00
Long term Debt
Total Liabilities
Equity
Total
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