Additional information:

a.	Direct materials purchases are paid 7070 % in the quarter purchased and 3030 % in the next quarter.
b.	Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred.
c.	Accounts payable at DecemberDecember 3131 , 20182018 are paid in the first quarter of 20192019 .

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Requirement 1. Prepare

HaneyHaney

Company's budgeted income statement for the first quarter of

20192019 .

Haney Company
Budgeted Income Statement
For the Quarter Ended March 31, 2019
Sales Revenue		$ 307,000
Cost of Goods Sold		71,100
Gross Profit		235,900
Selling and Administrative Expenses		22,930
Income before Income Taxes		212,970
Income Tax Expense		42,000
Net Income		$ 170,970

Requirement 2. Prepare

HaneyHaney

Company's budgeted balance sheet as of

MarchMarch

3131 ,

20192019 .

Haney Company
Budgeted Balance Sheet
March 31, 2019
Assets
Current Assets:
Cash
Accounts Receivable
Raw Materials Inventory
Finished Goods Inventory
Total Current Assets
Property, Plant, and Equipment:
Equipment
Less: Accumulated Depreciation
Total Assets
Liabilities
Current Liabilities:
Accounts Payable
Stockholders' Equity
Common Stock
Retained Earnings
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity

Budgeted total sales, all on account Budgeted direct materials to be purchased and used Budgeted direct labor cost Budgeted manufacturing overhead costs 307,000 40,000 13,320 Haney Company Post-Closing Trial Balance December 31, 2018 Account Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Equipment Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals Debit Credit Variable manufacturing overhead Depreciation Insurance and property taxes 2,220 800 1,050 71,100 S 14,000 21,600 12,000 26,850 165,000 Budgeted cost of goods sold Budgeted selling and administrative expenses: Salaries expense Rent expense Insurance expense Depreciation expense Supplies expense ,000 4,000 1,300 350 12,280 260,000 42,000 34,000 70.000 12,800 100,000 56,650 239,450 S 239,450 $ Budgeted cash receipts from customers Budgeted income tax expense Budgeted purchase and payment for capital expenditures (additional equipment) Print Done