The Essex Eye Company (EEC) makes reading glasses. EEC’s expected beginning balance sheet on January 1, 2016 follows:

During 2016, EEC expects to sell 100,000 units (reading glasses) for \($12\) apiece. The reading glasses are sold on account, and the accounts receivable is expected to be \($100,000\) on December 31, 2016. The firm expects to have 10,000 reading glasses in inventory on December 31, 2016.
EEC uses a JIT-purchasing system with no Raw Materials inventory. Instead, EEC purchases raw materials only when needed immediately for the assembly of reading glasses at its Essex facility. The cost of the materials is \($6\) per unit. The raw materials are bought on account, and the company expects the accounts payable on December 31, 2016 to be \($120,000.
Labor\) and overhead are treated as period expenses. The average direct labor for each pair of reading glasses is expected to be \($2\) per unit. The overhead is fixed and projected to be \($200,000\) for the year. Depreciation of \($20,000\) is included in fixed overhead. The remaining overhead requires cash payments.
During 2016, EEC plans to buy \($50,000\) in property, plant, and equipment and issue \($20,000\) more in long-term debt. The interest on the long-term debt for 2016 is expected to be \($12,000.\) The firm expects to pay \($10,000\) in dividends in 2016.
Prepare a master budget for EEC and pro-forma statements for the period ending December 31, 2016.

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The Essex Eye Company Expected Beginning Balance Sheet January 1, 2016 Assets Cash $ 80,000 Accounts receivable 50,000 Inventory (6,000 units at 6/unit) 36,000 Property, plant, and equipment (net) 100,000 $266,000 Liabilities and Shareholders' Equity Accounts payable $100,000 Long-term debt Shareholders' equity 100,000 66,000 $266,000