Exercise 5-30 Bill Thomas, Concord&Hill\'s controller, has received all the budg
ID: 2340555 • Letter: E
Question
Exercise 5-30 Bill Thomas, Concord&Hill's controller, has received all the budgets prepared by the various operating units and is ready to comple 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 Accumulated Depreciation $56,400 54,990 46,060 7,106 282,000 (70,500) Total Assets Accounts Payable Income Tax Payable Common Stock Retained Earnings $376,056 s16,920 70,744 94,000 194,392 $376,056 Total Liabilities & Owners Equity Selected Estimates Budgeted revenue Selling and administrative expense Interest expense Cash Cost of Goods Sold Accounts receivable (net) Direct materials Finished goods Acounts payable Notes payable Quarter $1,325,400 250,416 3,177 28,929 943,168 128,310 5,226 55,474 31,208 38,540Explanation / Answer
Quarterly Income Statement Particulars Amount Sales Revenue 1,325,400 Less: Cost of goods sold 943168 Gross Profit 382,232 Selling and administrative expenses 250416 operating income / ( Loss) 131,816 Interest 3177 Income before Taxes 128,639 Income tax Expenses @28% 36018.92 Net Income 92,620.08 Bates & Hills Balance Sheet At the end of Quarter Assets Amount Current Assets Cash 28929 Accounts Receivable net 128310 Finished goods inventory 55474 Direct materials 5226 Total Current Assets 217939 Fixed Assets Property, plant and Equipment 406080 Accumulated Depreciation (70500+(28200+9400)*3 183300 Net Fixed Assets 222780 Total Assets 440719 Liabilities & Equities Current Liabilities Accounts Payable 31208 Income Tax Payable 36018.92 Notes Payable 38540 Total Current Liabilities 105766.92 Stockholders Equity Common Stock 94000 Retained Earnings (194392+92620-46060) 240,952 Total Stockholders Equity 334,952 Total Liabilities & Equities 440,719