Success Company, a merchandising company, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the second quarter.

a.As of March 31 (the end of the prior quarter), the company's balance sheet showed the following account balances:

CashBr. 9,000

Accounts Receivable48,000

Inventory12,600

Plant and Equipment (net)214,100

Accounts PayableBr. 18,300

Capital Stock190,000

Retained Earnings ________75,400

Br. 283,700Br. 283,700

b.Actual sales for March and budgeted sales for April through July are as follows:

March (actual)Br. 60,000

April70,000

May85,000

June90,000

July50,000

c.Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sales. The accounts receivable at March 31 are a result of March credit sales.

d.The company's gross profit rate is 40% of sales.

e.Monthly expenses are budgeted as follows: Salaries and wages, Br. 7,500 per month; shipping, 6% of sales; advertising, Br. 6,000 per month; depreciation, Br. 2,000 per month; other expenses, 4% of sales. All these monthly expenses of depreciation will be paid in the month incurred.

f.At the end of each month, inventory is to be on hand equal to 30% of the following month's sales needs, stated at cost.

g.Half of a month's inventory purchases are paid for in the month of purchase and half in the following month. All accounts payable at March 31 relates to merchandise purchases and will be paid during April.

h.Equipment purchases during the quarter will be as follows: April, Br. 11,500; and May, Br. 3,000

i.Dividend totaling Br. 3,500 will be declared and paid in June.

j.The company must maintain a minimum cash balance of Br. 8,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month. Borrowings and repayments of principal must be in multiples of Br. 1,000. Interest is paid only at the time of repayment of principal. The annual interest rate is 12%

Instructions:

1.what is the budgeted income statement for the quarter ending June 30.

2.what is the cash budget for the period April through June, by month and in total

3.what is proforma balance sheet as of June 30.