Krause Industries' balance sheet at December 31, 2021, is presented here.

Budgeted data for the year 2022 include the following.

To meet sales requirements and to have 2,500 units of finished goods on hand at December 31, 2022, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $18. Krause uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 20% of income before income taxes. In 2022, the company expects to declare and pay an $8,000 cash dividend.
The company's cash budget shows an expected cash balance of $13,180 at December 31, 2022. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2022, the company expects to purchase additional equipment costing $9,000. A total of $4,000 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Krause expects to pay $8,000 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $3,500, above). Accounts payable at December 31, 2022, includes amounts due suppliers (see above) plus other accounts payable relating to manufacturing overhead of $7,200. Unpaid income taxes at December 31 will be $5,000.

Instructions
Prepare a budgeted statement of cost of goods sold, budgeted multiple-step income statement, and retained earnings statement for 2022, and a budgeted classified balance sheet at December 31, 2022.

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Krause Industries Balance Sheet December 31, 2021 Assets Current assets Cash Accounts receivable Finished goods inventory (1,500 units) Total current assets Property, plant, and equipment Equipment Less: Accumulated depreciation Total assets Liabilities $40,000 10,000 Liabilities and Stockholders' Equity $40,000 25,000 Notes payable Accounts payable Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 7,500 73,500 24,000 105,000 30,000 $135,000 $ 25,000 45,000 70,000 65,000 $135,000