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Question
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 |
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.
Answer
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