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How much will be owed to the bank on June 30, 2018? Prepare a monthly...

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Accounting

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How much will be owed to the bank on June 30, 2018? Prepare a monthly income statement and monthly balance sheet for the company FINA 470 for the first six month of 2018. Also reconcile between monthly earnings and the amount of cash available to reduce the bank note. Neat Presentation is important. (page breaks and formatting will be evaluated.) Information obtained during interview: Sales in November and December 2017 were $95,000 and 100,000, respectively. Gross profit averages 45% General and administrative expense approximate 30% of sales. Sales in 2018 are expected to increase 5% a month 3 Inventory at month end is targeted to equal the following two months anticipated sales Cash at December 31, 2017 was $25,000 and is expected (budgeted) to increase by $1,200 per month. Other assets at 2017 year end was $16,000 and expected to remain at the same level Common stock is valued at $50,000 and no additional sales expected. Accounts payable at each month end equals 75% of month end inventory. Accounts receivable turn over approximately 12 times. Bank Note was $120,000 at December 31, 2017

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