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

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)   work on an income statement budget.

2)  Work on 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