A new company, Apex, was started on December 1, 2013. Below are their sales forecast...
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Accounting
A new company, Apex, was started on December 1, 2013. Below are their sales forecast and other financial information. Based on this information, provide an financial analysis that includes the following: 1) Prepare an income statement budget. 2) Prepare a cash flow budget 3) Does the company have enough capitalization? 4) Which month does the company achieve positive cash flow? Sales Forecast: January 2014 $100,000 February $150,000 March $200,000 April $200,000 May $300,000 June $300,000 July $300,000 Each month thereafter Salaries: $30,000/month Facilities: $10,000/month Admin: $10,000/month Cost of Goods Sold: 60% of sales COGS cash disbursement 1 month prior to sale No cash sales. Receivables are collected as follows: 70% collected the following month of sales 20% two months after the sale 10% three months after the sale Company has $250,000 in cash currently and a line of credit for $200,000
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