#10.

Construct a first-quarter 2012 cash flow forecast for Pepperton.

Pepperton Selected Information

Sales (20 percent for cash, the rest on 30-day credit terms):

2011 Actual

October 360,000

November 420,000

December 1,200,000

2012 Projected

January 600,000

February 240,000

March 240,000

Purchases (all on 60-day terms):

2011 Actual

October 510,000

November 540,000

December 1,200,000

2012 Projected

January 300,000

February 120,000

March 120,000

Wages payable monthly 180,000

Principal payment on debt due in March 210,000

Interest due in March 90,000

Dividend payable in March 300,000

Taxes payable in February 180,000

Addition to accumulated depreciation in March 30,000

Cash balance on January1, 2012 300,000

Minimum desired cash balance 150,000

Cash Budget:

Pro forma income and balance sheets:

Chapter 3, Problem 10P (l Bookmark) Show all steps OMD := Problem Based on your answer to question 9, construct a first-quarter 2012 cash flow forecast for Pepperton Question 9 Continuing problem 8, Pepperton's annual income statement and balance sheet for December 31, 2011, appear next Additional information about the company's accounting methods and the treasurer's expectations.for the first quarter of 2012 can be seen in the footnotes Pepperton Annual Income Statement December 31, 2011 (S thousands) Net sales $6,000 Cost of goods sold1 3,900 Gross profits 2,100 Selling and administrative expenses2 1,620 Interest expense 90 Depreciation3 90 Net profit before tax 300 Tax (33%) Net profit after tax $ 201