VSB 3006 _______________________________

X2 Extra Credit Print Name (Last, First)

Budgeting

The following is actual data from JMEs F/S of 20x1 -

Revenue		$770,000			Cash		$30,000
Variable CGS		530,000			Acc Rec		49,400
Gross Profit		240,000			Other		16,000
Op Exp Selling		44,000			P. P. E		190,000
General		90,000			Acc Dep		<54,000>
Admin		30,000			Total		$231,400
Income		$76,000
					Acc Pay		$22,000
					Mtg Pay		140,000
					JME Capital		69,400
					Total		$231,400

In the upcoming year the following predictions have been made -

1 Revenues will increase 12%

2 Selling expenses will increase 11%

3 Additional PPE will be purchased on 10/1 for $80,000

4 Variable CGS will increase 9%

5 Depreciation expense is in general

6 JME uses SL with 0- salvage and 10 year lives

7 General expense, exclusive of depreciation will increase 10%

8 Admin expenses will increase $5,500

9 Acc Rec at 12/31 is expected to be 2% of the years revenue

10 Acc Pay on 12/31 is expected to be 5% of total operating expense

11 Principal payments of $15,000 will be made (you may ignore interest)

12 JME plans to withdraw $75,000 during the period (similar to dividends)

13 Other assets will not change this period

REQUIRED - Prepare pro forma I/S, B/S and SCF for JME for 20x2. Cash flow from operations is to be prepared under both methods.