The Marsh company makes standard size 2 inch fasteners,which it sells for $155 per thousand. Mr. Ma

Jun 29th, 2015
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monthly and quaterly pro forma income statements, a pro forma quarterly balance sheet and all the necessary supporting schedules for the first quater

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Question:-The Marsh company makes standard size 2 inch fasteners,which it sells for $155 per thousand. Mr. Marsh is the majority owner and manages the inventory and finances of the company. He Estimates sales for the following months to be. Month Fasteners Jan$263,0001,700,000 Feb$186,0001,200,000 Mar$217,0001,400,000 April$310,0002,000,000 May$387,5002,500,000 Last year Marsh corp sales were $175,000 in November and $232,500 in December.(1,500,000 fasteners. Mr. Marsh is preparing for a meeting with his banker to arrange the financing for the first quarter. Based on his sales focast and the following information he provided please prepare a monthly cash budget, monthly and quaterly pro forma income statements, a pro forma quarterly balance sheet and all the necessary supporting schedules for the first quater. Past histroy shows that the Marsh corp collects 50 % of it accounts recievable in the normal 30 day period( the month after the sale)and the other 50 % in 60 days. It pays for materials 30 days after receipt. In general mr. Marsh likes to keep a 2 months supply in inventory in anticipation of sales. Inventory at the begining of December was 2,600,000 units. The major cost of the production is the purchase of raw materials in the form of stell rods,which are cut threaded and finished.last year raw material costs

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