Discuss an assumption made when compiling a cash budget or pro forma financial statements. Be sure to include how that assumption may be calculated incorrectly and the effect it may have on the firm. When responding to your peers discuss at least one safeguard that could be used to avoid incorrect calculation and and additional effect incorrect calculations may have or a method you could use to remediate the effect.

The following transactions occur for badger biking company during the month of june: a. provide services to customers on account for $32,000. b. receive cash of $24,000 from customers in (a) above. c. purchase bike equipment by signing a note with the bank for $17,000. d. pay utilities of $3,200 for the current month. analyze each transaction and indicate the amount of increases and decreases in the accounting equation. (decreases to account classifications should be entered as a negative.)