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A new company, Apex, was started on December 1, 2013. Below are their sales forecast and...

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:

specifically show where the $250,000cash on hand and $200,000 line of credit are listed on the income statement budget and cash flow statement budget


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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