Case 4

The company have also poorly forecasted gross sales from January to rattling(prenominal) ($11.9) with actual sales amounting to $8.7m. The company destinys to borrow more cash because it wants to buy new machinery at a cost of $350k and this is due to no machinery being replaced because of the economic downturn. The company purchased $420k worth of freak materials, which it will use by the end of the year. There was a substantial backlog of orders amounting to $16.5m on 31st August. There was a missing piece of electronic equipment to finish some machines treasured at $1,320,000, which was due to arrive and then the orders can be finished. The company needs to stay cash positive on a daily basis in order to pay its operations and business expansion. Based on the information in the case, prepare a projected cash budget for the quaternion months September through December 1979, a projected income domination for the same period, and a pro forma balance sheet as of Dece mber 31, 1979. See attached excel spreadsheet below. | | | | | | | | | | | | master Forma Statements| | | | | | | | (thousands of dollars)| | | | | | | | | | | | pro Forma|  | June| July| Aug.| Sept.| Oct.| Nov.| Dec.

| lettuce sales| $1,620| $723| $507| $2,163| $1,505| $1,604| $2,265| Purchases| | | | $600| $600| $600| $600| WIP inventory reduction| | | | $1,320| $0| $0| $0| Raw materials reduction| | | | $ one hundred five| $105| $105| $105| Cost of goods sold| | | | $2,025| $705| $705| $705| depreciation| | | | $10| $10| $14| $14| Other expenses| | | | $ quad hundred| $400| $400| $400| Cost of sales and other expen ses| $1,327| $597| $342| $2,435| $1,115| $1,! 119| $1,119| EBIT| $293| $126| $165| -$272| $390| $486| $1,147| amuse expense| $15| $15| $15| $15| $15| $20| $20| Net income before taxes| $278| $111| $150| -$287| $375| $466| $1,127| Income taxes| $133| $53...If you want to get a full essay, order it on our website: OrderEssay.net

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