The document provides financial projections for a company over a 6 month period from December to June, including: - Sales, costs, and net income are projected to increase each month. - Assets like cash and inventory are projected to increase each month, while liabilities like accounts payable and bank notes are projected to decrease. - The company's net income plus increased accounts payable provides funds to pay down the bank note liability each month.

1. Fina 470 Eric Desautel Section 003
Budget Forecast
December January February March
Income Statements:
Sales 110,000 115,500 121,275 127,339
Cost of goods sold 59,400 62,370 65,488 68,763
Gross profit 50,600 53,130 55,787 58,576
General & adm. expenses 34,100 35,805 37,595 39,475
Net Income 16,500 17,325 18,192 19,101
Balance sheets:
Assets:
Cash and cash equivalents 25,000 26,200 27,400 28,600
Receivables 110,000 115,500 121,275 127,339
Inventories 236,775 248,614 261,044 274,097
Total current assets 371,775 390,325 409,719 430,035
Other non-current assets 16,000 16,000 16,000 16,000
Total assets 387,775 406,325 425,719 446,035
Liabilities:
Accounts payable 177,581 186,461 195,783 205,573
Bank note 120,000 111,481 104,226 95,652
Total liabilities 295,891 297,941 300,009 301,225
Equity:
Common stock 50,000 50,000 50,000 50,000
Retained earnings 41,884 58,384 75,710 94,810
Total equity 91,884 108,384 125,710 144,810
Total liabilities and equity 387,775 406,325 425,719 446,035
Reconciliation between Net income and cash reduction in Notes payable:
Source of funds:
Net Income 16,500 17,325 18,192 19,101
Increase in accounts payable 8,456 8,880 9,323 9,789
24,956 26,205 27,515 28,890
Use of funds
Cash 1,200 1,200 1,200 1,200
Accounts receivables 10,000 5,500 5,775 6,064
Inventory 11,275 11,839 12,430 13,053
22,475 18,539 19,405 20,317

2. Cash available to pay bank note 2,481 7,666 8,109 8,573
Prior month bank note balance - 120,000 111,481 104,226
Expected bank note balance 120,000 111,481 104,226 95,652
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Ending bank note balance 120,000 111,481 104,226 95,652

3. April May June
133,706 140,391 147,411
72,202 75,811 79,602
61,505 64,580 67,809
41,448 43,521 45,697
20,056 21,059 22,112
29,800 31,000 32,200
133,706 140,391 147,411
287,802 302,193 317,302
451,308 473,584 496,913
16,000 16,000 16,000
467,308 489,584 512,913
215,852 226,645 237,977
86,589 77,014 66,900
302,442 303,659 304,876
50,000 50,000 50,000
114,866 135,925 158,037
164,866 185,925 208,037
467,308 489,584 512,913
20,056 21,059 22,112
10,279 10,793 11,332
30,335 31,852 33,444
1,200 1,200 1,200
6,367 6,685 7,020
13,705 20,391 15,110
21,272 28,276 23,330

4. 9,063 3,576 10,114
95,652 86,589 77,014
86,589 77,014 66,900
86,589 77,014 66,900