Exercise 5-30 Bill Thomas, Coronado & Hill\'s controller, has received all the b

Question

Exercise 5-30 Bill Thomas, Coronado & Hill's controller, has received all the budgets prepared by the various operating units and is ready to compile the pro-forma financial statements for the first quarter. The company's balance sheet of December 31 is as follows: Cash Accounts Receivable (net) Finished Goods Inventory Raw Materials Inventory Property, Plant & Equipment 45,000 43,875 36,750 5,670 225,000 (56,250) $300,045 $13,500 56,445 75,000 155,100 $300,045 Total Assets Accounts Payable Income Tax Payable Common Stock Retained Earnings Total Liabilities & Owners Equity Selected Estimates Quarter $1,057,500 Selling and administrative expense199,800 2,535 23,081 752,528 102,375 4,170 44,261 24,900 30,750 Budgeted revenue Interest expense Cash Cost of Goods Sold Accounts receivable (net) Direct materials Finished goods Acounts payable Notes payable

Explanation / Answer

Quarterly Income Statement Particulars Amount Sales Revenue 1,057,500 Less: Cost of goods sold 752528 Gross Profit 304,972 Selling and administrative expenses 199800 operating income / ( Loss) 105,172 Interest   2535 Income before Taxes 102,637 Income tax Expenses @23% 23606.51 Net Income 79,030 Bates & Hills Balance Sheet   At the end of Quarter Assets Amount Current Assets Cash 23081 Accounts Receivable net 102375 Finished goods inventory 44261 Direct materials 4170 Total Current Assets 173887 Fixed Assets Property, plant and Equipment 324000 Accumulated Depreciation (56250+(22500+7500)*3 146250 Net Fixed Assets 177750 Total Assets 351637 Liabilities & Equities Current Liabilities Accounts Payable 24900 Income Tax Payable 23606.51 Notes Payable 30750 Total Current Liabilities 79256.51 Stockholders Equity Common Stock 75000 Retained Earnings (155100+79030-36750) 197,380 Total Stockholders Equity 272,380 Total Liabilities & Equities 351,637

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