Exercise 5-30 LINK TO TEXT Open Show Work Exercise 5-30 Bill Thomas, Sheridan &
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Question
Exercise 5-30
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Exercise 5-30
Bill Thomas, Sheridan & 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 $ 57,600 Accounts Receivable (net) 56,160 Finished Goods Inventory 47,040 Raw Materials Inventory 7,258 Property, Plant & Equipment 288,000 Accumulated Depreciation (72,000 ) Total Assets $384,058 Accounts Payable $ 17,280 Income Tax Payable 72,250 Common Stock 96,000 Retained Earnings 198,528 Total Liabilities & Owners Equity $384,058 Selected Estimates Quarter Budgeted revenue $1,353,600 Selling and administrative expense 255,744 Interest expense 3,245 Cash 29,544 Cost of Goods Sold 963,235 Accounts receivable (net) 131,040 Direct materials 5,338 Finished goods 56,654 Acounts payable 31,872 Notes payable 39,360
Additional Information:
? Bates & Hill plans to declare and pay dividends totaling $47,040 in January. ? Bates & Hill plans to purchase and pay cash for a piece of land in February at a cost of $69,120. ? Bates & Hill plans to purchase equipment in March at a cost of $57,600. ? Depreciation for manufacturing overhead $28,800 per month and for selling and administrative $9,600 per month.
The company expects a 29% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. sign w sign Macy , in in . 's Tenant Portal . Login ?Sneaker Files-Snei Davis, Managerial Accounting, 3e Your answer is incorrect. Try again. What is the annual breakeven point in units? In sales dollars? (Use your Round answers to O decimal places, e.g. 5,275.) answer of breakeven units to calculate the breakeven poir The breakeven point frisbees The breakeven sales Click if you would like to Show Work for this question: Qpen Sha Work K TO TEXT Attempts: 1 of 2 used SAVE FOR LATE The parts of this question must be completed in order This part wei be available when you complete the part above ?(c) The parts of this question must be completed in order. This part wil be available when you complete the part above The parts of this question must be completed in order. This part will be available when you complete the part above Qvestion Unit 2 Lab Preliminary Quiz 01 P
Explanation / Answer
Part 1)
The proforma income statement is prepared as below:
_____
Part 2)
The proforma balance sheet is given as follows:
Sheridan and Hill Proforma Income Statement First Quarter Sales 1,353,600 Cost of Goods Sold 963,235 Gross Margin 390,365 Selling & Administrative Expense 255,744 Operating Income/(Loss) 134,621 Interest Expense 3,245 Income before Taxes 131,376 Income Tax Expense 38,099 Net Income/Loss $93,277