Need help solving problems 5-1, 5-2, 5-3 (question transitions from the bottom of "Picture 1" to "Picture 2"), and 5-7 (5-7 has information in the question that is to be used to find/fill the blanks):

Picture 1:

92 PART 2: FINANCIAL PLANNING AND CON Define the phrase "pro forma" and explain the purpose of pro forma finan statements. Explain pro forma earnings, problems with pro forma, and ben lal of pro forma analysis. . http:/ / www.investopedia.com/terms/p/proforma.asp B LIST OF KEY TERMS budgets management information system cash budget sales budget pro forma balance sheet production budget percent-of-sales method pro forma income statement sale expense budget pro forma funds flow statement PROBLEMS 5-4 5-1 Prepare the cash budget of the Hughes Company for the first six months of 2013 on the basis of the following estimates: (1) Credit sales are expected to be $20,000 a month from December 2012 to June 2013. (2) Monthly credit purchases of raw materials are expected to be $10,000 from December 2012 to June 2013. 5-5 (3) Accounts receivable are collected in the month following the sales. Pay- ments for raw materials are also made in the month following the month in which these costs were incurred. (4) Wages and salaries used in the production process are expected to be $3,000 each month, paid in the month they are incurred; factory overhead is $1,000 per month; selling expenses are $1,500 each month; and monthly (5) administrative expenses are $500. The company's capital budget calls for the purchase of a new machine costing $10,000 whose payment is expected to be made in May; income tax payments of $5,000 are due in March; dividend payments of $10,000 are planned in March; and semiannual interest of $1,000 on $20,000 of 10 percent bonds is due in June. (6) The company has a cash balance of $10,000 on December 31, 2012. This 5-2 amount is the minimum cash balance which should be maintained through- out the budget period. Using the cash budget worked out in Problem 5-1 and the following additional information, prepare a pro forma income statement for the Hughes Company for the six months ending June 30, 2013. 5-6 (7) The company's tax rate is 50 percent. 8) Depreciation charges are $500 a month. 5-3 (9) The company had an inventory of $1,000 at the close of 2012 and wishes to increase its inventory level to $8,000 by the end of June 2013. Use the information given in Problems 5-1 and 5-2 and the following informa- tion to construct a pro forma balance sheet for the Hughes Company for June