a$).$ Prepare a Projected Operating Statement on the accrual basis for July $$ December using the assumptions provided in Exhibit $3.$

b$).$ Prepare a Projected Balance Sheet on the accrual basis for July $$ December using the assumptions provided in Exhibit $3$ and additional information provided it the case.

Formulas for Pro Forma Balance Sheet for July $-$ December

Accounts Receivable: Beginning Balance $+$ Current Month Net Sales Revenue $$

Collections on Accounts Receivable $(5$ month lag$)$

Equipment: Beginning Balance $+$ Purchases $$ Depreciation

Dean Payable: Beginning Balance $+11\%$ Net Revenue $11\%$ Collections

Retained Earnings: Beginning Balance $+/-$ Surplus$/$Deficit

c$).$ Prepare a Projected Bank Loan Reconciliation for July $$ December using the assumptions provided in Exhibit $3$ and additional information $($including the Operating Statement and Balance Sheet$)$ provided in the case.

Briefly describe the decline in available cash position.

Briefly describe other strategic options that are available.