Using the assumptions provided below, complete the following pro forma comparative balance sheets and related reconciliations of cash and owners equity for Bargain Basement:

Bargain Basement Apparel Shoppe, LLC List of Assumptions for July 1, 2020-December 31, 2021 Although cost of goods sold will increase, inventory levels are expected to remain the same at $20,000 for clothing and $7,500 for accessories through the end of 2021 due to expertise gained in inventory management. No fixed assets are expected to be purchased, sold, or abandoned during the time frame of July 1, 2020- December 31, 2021. Insurance and utilities expenses are expected to remain at their monthly expense amounts of $200 and $500, respectively. Insurance is expected to continue to be paid one month in advance. Utilities are expected to continue to be paid in the month after the services are used. Accounts payable is expected to approximate 90% of clothing and accessories inventory. Payroll payable is expected to equal one-third of payroll expense for fourth quarter 2021. Payroll taxes payable is expected to equal one-third of payroll tax expense for fourth quarter 2021. Sales tax payable is expected to approximate one-third of fourth quarter 2021 sales multiplied by 0.055. Sales Payroll Payroll taxes Information for Fourth Quarter 2021 $179,775 $ 11,011 $ 1,486 The owner will begin taking distributions of $10,000 per month beginning January 2021. Bargain Basement Apparel Shoppe, LLC Pro Forma Balance Sheets As of June 30, 2020, and December 31, 2021 (Pre-Revenue) (Post-Revenue) June 30, 2020 December 31, 2021 Bargain Basement Apparel Shoppe, LLC Pro Forma Reconciliations of Cash and Owners' Equity For the Six Quarters Ended December 31, 2021 Reconciliation of Cash: Cash Prepaid insurance Clothing inventory Accessories inventory Total current assets $ 24,300 200 20,000 7,500 52,000 209,640 8,970 7,500 Beginning cash Add: Net income for the six quarters ended December 31, 2021 Add: Depreciation for the six quarters ended December 31, 2021 Adjustments for changes in noncash assets and liabilities: Increase in accounts payable Increase in payroll payable Increase in payroll taxes payable Increase in sales tax payable Less: Distributions during the six quarters ended December 31, 2021 Ending cash Checkout counters and furniture Clothing racks and shelving Computers and software Security system Less: Accumulated depreciation Net fixed assets 7,400 10,000 5,000 29,900 Total assets $ 81,900 Reconciliation of Owners' Equity: $ Accounts payable Payroll payable Payroll taxes payable Utilities payable Sales tax payable Total liabilities 500 Beginning owners' equity Add: Net income for the six quarters ended December 31, 2021 Less: Distributions during the six quarters ended December 31, 2021 Ending owners' equity 500 Owners' equity 81,400 Total liabilities and owners' equity $ 81,900 Bargain Basement Apparel Shoppe, LLC List of Assumptions for July 1, 2020-December 31, 2021 Although cost of goods sold will increase, inventory levels are expected to remain the same at $20,000 for clothing and $7,500 for accessories through the end of 2021 due to expertise gained in inventory management. No fixed assets are expected to be purchased, sold, or abandoned during the time frame of July 1, 2020- December 31, 2021. Insurance and utilities expenses are expected to remain at their monthly expense amounts of $200 and $500, respectively. Insurance is expected to continue to be paid one month in advance. Utilities are expected to continue to be paid in the month after the services are used. Accounts payable is expected to approximate 90% of clothing and accessories inventory. Payroll payable is expected to equal one-third of payroll expense for fourth quarter 2021. Payroll taxes payable is expected to equal one-third of payroll tax expense for fourth quarter 2021. Sales tax payable is expected to approximate one-third of fourth quarter 2021 sales multiplied by 0.055. Sales Payroll Payroll taxes Information for Fourth Quarter 2021 $179,775 $ 11,011 $ 1,486 The owner will begin taking distributions of $10,000 per month beginning January 2021. Bargain Basement Apparel Shoppe, LLC Pro Forma Balance Sheets As of June 30, 2020, and December 31, 2021 (Pre-Revenue) (Post-Revenue) June 30, 2020 December 31, 2021 Bargain Basement Apparel Shoppe, LLC Pro Forma Reconciliations of Cash and Owners' Equity For the Six Quarters Ended December 31, 2021 Reconciliation of Cash: Cash Prepaid insurance Clothing inventory Accessories inventory Total current assets $ 24,300 200 20,000 7,500 52,000 209,640 8,970 7,500 Beginning cash Add: Net income for the six quarters ended December 31, 2021 Add: Depreciation for the six quarters ended December 31, 2021 Adjustments for changes in noncash assets and liabilities: Increase in accounts payable Increase in payroll payable Increase in payroll taxes payable Increase in sales tax payable Less: Distributions during the six quarters ended December 31, 2021 Ending cash Checkout counters and furniture Clothing racks and shelving Computers and software Security system Less: Accumulated depreciation Net fixed assets 7,400 10,000 5,000 29,900 Total assets $ 81,900 Reconciliation of Owners' Equity: $ Accounts payable Payroll payable Payroll taxes payable Utilities payable Sales tax payable Total liabilities 500 Beginning owners' equity Add: Net income for the six quarters ended December 31, 2021 Less: Distributions during the six quarters ended December 31, 2021 Ending owners' equity 500 Owners' equity 81,400 Total liabilities and owners' equity $ 81,900