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1. Prepare a Pro-forma income statement, and balance sheet and cash budget statement , for your company, on a monthly bases for the 2^nd quarter, and a total column for the quarter, based on the following assumptions:

• Sales will increase by 50% over Q1 and are equally spread out over the 3 months. All sales are on credit. The collection pattern is 20% in the month of sale, 50% in the month following sale and the balance in the 2^nd month following sale.
• All of the A/R outstanding at March 31^st will be received in the 2^nd quarter as follows; 80% in April and the balance in May.
• The employees will be the four employees who worked on the March 31^st payroll (in Assignment 2). Their wages and source deductions remain the same. Source deductions must be paid on the 15^th of the following month.
• Rent will be the same; telephone expense which will be $800 per month (+HST).
• The business will buy computer equipment on April 1 for $1,000 plus HST.
• HST is paid on the 15^th of the month following the end of the quarter.
• Accrued interest will be paid on April 1^st and interest will have to be accrued monthly. It will be paid on July 2^nd. Bank charges paid to the bank are $200 per month.
• Office expenses will be $100 per month, plus HST.
• Depreciation expense will have to be calculated monthly.
• Supplies of $200 (plus HST) per month will be purchased as they are used.
• The prepaid airline ticket will be used in May.
• Monthly maintenance is $800 per month + HST

• There are no professional fees incurred in this quarter.

• Ignore WSIB expense and income tax expense

• When preparing your cash budget, there is no minimum cash balance required.