Based on your answer to question 9, construct a first-quarter 2015cash flow forecast for Westmark Industrial.

Westmark Industrial’s annual income statement and balance sheet for December 31, 2014 appear below. Additional information about the company’s accounting methods and the treasurer’s expectations for the first quarter of 2015 appear in the footnotes.

Transcribed Image Text:

Income Statement January 1,2014 to December 31, 2014 ($ thousands $6,000 3,900 2,100 1,620 90 90 300 Net sales Cost of goods sold Gross profits Selling and administrative expenses2 Interest expense Depreciation Net profit before tax Tax (33%) Net profit after tax 201 Balance Sheet December 31,2014 ($ thousands Assets Cash Accounts receivable Inventory 300 960 1,800 3,060 900 150 750 $3,810 Total current assets Gross fixed assets Accumulated depreciation Net fixed assets lotal assets Liabilities Bank loan Accounts payable Miscellaneous accruals Current portion long-term debt Taxes payable 1,740 60 210 300 2,310 990 510 $3,810 Total current lia bilities Long-term debt Shareholders' equity Total liabilities and equity