4. American Heroes, INC. manufactures porcelain figurines of professional athletes. The company's March 31 2017 balance sheet is as follows: American Heroes, INC. Condensed Balance Sheet March 31, 2017 $37,590 16,000 12,500 25,500 10,000 1,800 48,000 Accounts Payable Mortgage Payable Common Stock Retained Earnings Cash Accounts Receivable Materials Inventory Work in Process Inventory Finished Goods Inventory Prepaid Expenses Plant Assets Accumulated Depreciation, Plant Assets Total Assets $ 16,800 40,000 20,000 61.790 (12.800) $138,590 Total Liabilities and Stockholders' Equity $138,590 Budgets for the second quarter of 2017 provided the following information: Materials purchases Material usage Labor cost Factory overhead costs Selling expenses Administrative expenses Projected Sales: April May June S137,000 140,100 88,600 99.500 53,800 67,800 Ending Cash Balances: April May June Cost of goods manufactured Cost of goods sold S 45,800 35.400 37.950 327,400 265,360 163,000 146,600 155,300 The accounts receivable balance will increase by 40 percent during the quarter, and accounts payable will decrease by 10 percent. Mortgage payments this quarter will be $3,000 of which $1,040 is interest expense. Prepaid expenses will increase by $600 during the quarter. No plant asset acquisitions are planned for the quarter. Depreciation expense is 8 percent of the total plant asset cost for the quarter and is included in factory overhead. Dividends of $10,000 will be paid in May. The corporate federal income tax rate is 34 percent and payable in July a Prepare a forecasted income statement for the quarter ending June 30, 2017 b. Prepare a forecasted balance sheet as of June 30, 2017