13-30. Waterloo, Ltd. manufactures a component used in aircraft navigation systems. Demand has been strong and the executive staff at Waterloo is planning for next year. Yesterday, you were called into a budgeting meeting where production plans were being reviewed. You learn that the inventory policy at Waterloo is to hold one and one-half months' worth of sales (to avoid issues with transportation disruptions). The sales budget for next year is 660,000 units, spread evenly over the year. Because of an unexpected increase in demand, inventory at the end of this year is expected to be only 30,000 units. Question 1: Compute budgeted production for the coming year. ed x 1 inces The following transactions occurred during a recent year: a. Paid wages of $850 for the current period (example). b. Borrowed $4,250 cash from local bank using a short-term note. c. Purchased $1,700 of equipment on credit. d. Earned $340 of sales revenue; collected cash. e. Received $680 of utilities services, on credit. f. Earned $1,450 of service revenue, on credit. g. Paid $255 cash on account to a supplier. h. Incurred $60 of travel expenses; paid cash. Earned $340 of service revenue; collected half in cash, with balance on credit. J. Collected $90 cash from customers on account. k. Incurred $260 of advertising costs; paid half in cash, with balance on credit. Required: 1. For each of the transactions, complete the following table, indicating the account, amount, and direction of the effect (+ for increase and-for decrease) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders' equity, as shown for the first transaction, which is provided as an example. 2. Determine the company's preliminary net income.