Pro forma income statement for the final quarter

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Reference no: EM13767695

The cash budget for Parker Process Meats, Inc. for the fourth quarter of 2004 is given below:

Parker Process Meats, Inc.

Cash Budget for the Three Months Ending December 31, 2004

Cash receipts Oct. Nov. Dec.

Total collections $31,050 $4,050 $49,950

Cash disbursements:

Purchases 44,550 48,600 52,650

Wages and salaries 7,425 7,425 7,425

Other expenses 2,025 1,350 675

Taxes 17,415

Total disbursements $54,000 $57,375 $78,165

The expected sales for the period are as follows:

Oct.: $86,400 Nov.: $91,800 Dec.: $83,700

The total depreciation expense for the period will be $8,775. An interest payment on outstanding debt of $15,000 will be made in December. Using the information given, construct a pro forma income statement for the final quarter of 2004 for Parker.

Reference no: EM13767695

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