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Ignore Information regarding employees' payroll figures (given in assignment 2).

Ignore the prepaid airline ticket will be used in May.

Balance Sheet As at:2019-03-31 ASSET Current Assets Petty Cash 166.00 BNS Cash 10,208.68 Total Cash 10,374.68 Accounts Receivable 30,346.15 0.00 Allowance for Doubtful Accounts 30,346.15 450.00 0.00 41,170.83 4,000.00 Net Accounts Receivable Office Supplies Prepaid Expenses Total Current Assets Capital Assets Office Equipment Acc'd dep'n Office Equipment Net Office Equipment Computers Acc'd depin Computers Net Computers Software Acc'd dep'n Software -200.00 3,800.00 3,000.00 -250.00 2,750.00 1,450.00 -102.05 Net Software Total Capital Assets TOTAL ASSET 1,347.95 7,897.95 49,068.78 LIABILITY Current Liabilities Bank Operating Line Accrued Interest 20,000.00 110.00 0.00 0.00 0.00 Account Payable Wages Payable Unearned Revenue WSIB Payable CPP Payable El Payable Income Tax Payable 0.00 1,864.52 796.80 3,873.66 6,534.98 Total Source Deductions Payable HST Charged on Sales ITC's Net HST Payable Total Current Liabilities 9,146.15 -3,396.25 5,749.90 32,394.88 Long Term Debt Due to Shareholder 0.00 Total Liabilities 0.00 TOTAL LIABILITY 32,394.88 EQUITY 10.00 Shareholder's Equity Common Stock Retained Earnings Current Earnings Total Shareholder's Equity 24,990.00 -8,326.10 16,673.90 TOTAL EQUITY 16,673.90 LIABILITIES AND EQUITY 49,068.78 Prepare a Pro-forma income statement, and balance sheet and cash budget statement, for your company, on a monthly bases for the 2nd 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 2nd month following sale. All of the A/R outstanding at March 31st will be received in the 2nd quarter as follows; 80% in April and the balance in May. The employees will be the four employees who worked on the March 31st payroll (in Assignment 2). Their wages and source deductions remain the same. Source deductions must be paid on the 15th 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 15th of the month following the end of the quarter. Income Statement 2019-01-01 to 2019-03-31 REVENUE Revenue Consulting Fees Other Revenue 70,355.00 0.00 Total Revenue 70,355.00 TOTAL REVENUE 70,355.00 0.00 EXPENSE Expenses Bad Depts Bank Charges & Interest CPP Expense Depreciation Expense El Expense 630.00 2,632.80 552.05 1,307.25 0.00 Insurance Office Expenses Professional Fees 84.00 2,300.00 Rent Repairs & Maintenance Salaries Supplies Telephone Travel 9,000.00 2,400.00 56,250.00 550.00 2,975.00 0.00 0.00 WSIB Expense Corporate Income Tax Expense Total Expenses 0.00 78,681.10 TOTAL EXPENSE 78,681.10 NET INCOME -8,326.10 Balance Sheet As at:2019-03-31 ASSET Current Assets Petty Cash 166.00 BNS Cash 10,208.68 Total Cash 10,374.68 Accounts Receivable 30,346.15 0.00 Allowance for Doubtful Accounts 30,346.15 450.00 0.00 41,170.83 4,000.00 Net Accounts Receivable Office Supplies Prepaid Expenses Total Current Assets Capital Assets Office Equipment Acc'd dep'n Office Equipment Net Office Equipment Computers Acc'd depin Computers Net Computers Software Acc'd dep'n Software -200.00 3,800.00 3,000.00 -250.00 2,750.00 1,450.00 -102.05 Net Software Total Capital Assets TOTAL ASSET 1,347.95 7,897.95 49,068.78 LIABILITY Current Liabilities Bank Operating Line Accrued Interest 20,000.00 110.00 0.00 0.00 0.00 Account Payable Wages Payable Unearned Revenue WSIB Payable CPP Payable El Payable Income Tax Payable 0.00 1,864.52 796.80 3,873.66 6,534.98 Total Source Deductions Payable HST Charged on Sales ITC's Net HST Payable Total Current Liabilities 9,146.15 -3,396.25 5,749.90 32,394.88 Long Term Debt Due to Shareholder 0.00 Total Liabilities 0.00 TOTAL LIABILITY 32,394.88 EQUITY 10.00 Shareholder's Equity Common Stock Retained Earnings Current Earnings Total Shareholder's Equity 24,990.00 -8,326.10 16,673.90 TOTAL EQUITY 16,673.90 LIABILITIES AND EQUITY 49,068.78 Prepare a Pro-forma income statement, and balance sheet and cash budget statement, for your company, on a monthly bases for the 2nd 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 2nd month following sale. All of the A/R outstanding at March 31st will be received in the 2nd quarter as follows; 80% in April and the balance in May. The employees will be the four employees who worked on the March 31st payroll (in Assignment 2). Their wages and source deductions remain the same. Source deductions must be paid on the 15th 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 15th of the month following the end of the quarter. Income Statement 2019-01-01 to 2019-03-31 REVENUE Revenue Consulting Fees Other Revenue 70,355.00 0.00 Total Revenue 70,355.00 TOTAL REVENUE 70,355.00 0.00 EXPENSE Expenses Bad Depts Bank Charges & Interest CPP Expense Depreciation Expense El Expense 630.00 2,632.80 552.05 1,307.25 0.00 Insurance Office Expenses Professional Fees 84.00 2,300.00 Rent Repairs & Maintenance Salaries Supplies Telephone Travel 9,000.00 2,400.00 56,250.00 550.00 2,975.00 0.00 0.00 WSIB Expense Corporate Income Tax Expense Total Expenses 0.00 78,681.10 TOTAL EXPENSE 78,681.10 NET INCOME -8,326.10

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