(b) Prepare Bates & Hills pro-forma balance sheet as of March 31.

Pro-forma Balance Sheet
Accounts ReceivableDirect Materials InventoryCashFinished Goods InventoryAccumulated DepreciationTotal AssetsTotal Liabilities and Equities	$
CashTotal Liabilities and EquitiesAccounts ReceivableFinished Goods InventoryDirect Materials InventoryAccumulated DepreciationTotal Assets
Total Liabilities and EquitiesCashDirect Materials InventoryAccounts ReceivableFinished Goods InventoryAccumulated DepreciationTotal Assets
Direct Materials InventoryCashAccounts ReceivableFinished Goods InventoryAccumulated DepreciationTotal AssetsTotal Liabilities and Equities
Total AssetsTotal Liabilities and EquitiesCashAccumulated DepreciationAccounts ReceivableDirect Materials InventoryProperty, Plant & Equipment
Finished Goods InventoryCashTotal Liabilities and EquitiesAccumulated DepreciationTotal AssetsDirect Materials InventoryAccounts Receivable
Accounts ReceivableDirect Materials InventoryFinished Goods InventoryCashAccumulated DepreciationTotal AssetsTotal Liabilities and Equities	$
Note PayableTotal Liabilities and EquitiesCommon StockTaxes PayableTotal AssetsRetained EarningsAccounts Payable	$
Note PayableTotal AssetsRetained EarningsTaxes PayableCommon StockTotal Liabilities and EquitiesAccounts Payable
Total AssetsCommon StockAccounts PayableNote PayableTotal Liabilities and EquitiesRetained EarningsTaxes Payable
Accounts PayableTaxes PayableNote PayableRetained EarningsTotal AssetsTotal Liabilities and EquitiesCommon Stock
Accounts PayableTotal AssetsTaxes PayableNote PayableCommon StockRetained EarningsTotal Liabilities and Equities
Common StockRetained EarningsTotal Liabilities and EquitiesAccounts PayableTaxes PayableNote PayableTotal Assets	$

Exercise 5-30 (Part Level Submission) Bill Thomas, Bates & Hills controller, has received all the budgets prepared by the various operating units and is ready to compile the pro-forma financial statements for the first quarter. The companys balance sheet of December 31 is as follows:

Cash	$ 49,200
Accounts Receivable (net)	47,970
Finished Goods Inventory	40,180
Raw Materials Inventory	6,199
Property, Plant & Equipment	246,000
Accumulated Depreciation	(61,500	)
Total Assets	$328,049
Accounts Payable	$ 14,760
Income Tax Payable	61,713
Common Stock	82,000
Retained Earnings	169,576
Total Liabilities & Owners Equity	$328,049

Quarter
Budgeted revenue	$1,156,200
Selling and administrative expense	218,448
Interest expense	2,772
Cash	25,236
Cost of Goods Sold	822,763
Accounts receivable	111,930
Direct materials	4,559
Finished goods	48,392
Acounts payable	27,224
Notes payable	33,620

Additional Information:

	Bates & Hill plans to declare and pay dividends totaling $40,180 in January.
	Bates & Hill plans to purchase and pay cash for a piece of land in February at a cost of $59,040.
	Bates & Hill plans to purchase equipment in March at a cost of $49,200.
	Depreciation for manufacturing overhead $24,600 per month and for selling and administrative $8,200 per month.

The company expects a 25% income tax rate, and all quarterly taxes are paid in the first month of the following quarter