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 $ 38,400 Accounts Receivable (net) 37,440 Finished Goods Inventory 31,360 Raw Materials Inventory 4,838 Property, Plant Equipment 192,000 Accumulated Depreciation (48,000 ) Total Assets $256,038 Accounts Payable $ 11,520 Income Tax Payable 48,166 Common Stock 64,000 Retained Earnings 132,352 Total Liabilities Owners Equity $256,038 Quarter Budgeted revenue $902,400 Selling and administrative expense 170,496 Interest expense 2,163 Cash 19,696 Cost of Goods Sold 642,157 Accounts receivable 87,360 Direct materials 3,558 Finished goods 37,770 Acounts payable 21,248 Notes payable 26,240 Additional Information Bates Hill plans to declare and pay dividends totaling $31,360 in January Bates Hill plans to purchase and pay cash for a piece of land in February at a cost of $46,080 Bates Hill plans to purchase equipment in March at a cost of $38,400 Depreciationfor manufacturing overhead$19,200 per month andfor selling and administrative $6,400 per month The company expects a 19 income tax rate, and all quarterly taxes are paid in the first month of the following quarter (a) Your answer is partially correct Prepare Bates Hills pro forma income statement for the first quarter Pro forma Income Statement Interest ExpenseCost of Goods SoldIncome Before TaxesIncome Tax ExpenseSales RevenueSelling Administrative Expense $ Income Before TaxesSales RevenueIncome Tax ExpenseCost of Goods SoldSelling Administrative ExpenseInterest Expense Non Operating Income (Loss)Non Operating ExpensesNet Income (Loss)Gross MarginOperating Income (Loss) Selling Administrative ExpenseSales RevenueIncome Tax ExpenseInterest ExpenseCost of Goods SoldIncome Before Taxes Gross MarginNon Operating ExpensesOperating Income (Loss)Net Income (Loss)Non Operating Income (Loss) Selling Administrative ExpenseCost of Goods SoldSales RevenueInterest ExpenseIncome Before TaxesIncome Tax Expense Sales RevenueIncome Before TaxesSelling Administrative ExpenseInterest ExpenseCost of Goods SoldIncome Tax Expense Selling Administrative ExpenseSales RevenueInterest ExpenseIncome Tax ExpenseIncome Before TaxesCost of Goods Sold Non Operating Income (Loss)Non Operating ExpensesNet Income (Loss)Gross MarginOperating Income (Loss) $ SHOW ANSWER LINK TO TEXT Attempts 1 of 1 used (b)Prepare Bates Hills pro forma balance sheet as of March 31 Pro forma Balance Sheet Accounts ReceivableFinished Goods InventoryAccumulated DepreciationDirect Materials InventoryCashTotal AssetsTotal Liabilities and Equities $ Accounts ReceivableFinished Goods InventoryAccumulated DepreciationDirect Materials InventoryTotal Liabilities and EquitiesCashTotal Assets CashFinished Goods InventoryAccumulated DepreciationAccounts ReceivableTotal AssetsDirect Materials InventoryTotal Liabilities and Equities Finished Goods InventoryAccounts ReceivableAccumulated DepreciationDirect Materials InventoryCashTotal AssetsTotal Liabilities and Equities CashAccumulated DepreciationAccounts ReceivableDirect Materials InventoryProperty, Plant EquipmentTotal AssetsTotal Liabilities and Equities Total Liabilities and EquitiesAccounts ReceivableCashDirect Materials InventoryFinished Goods InventoryAccumulated DepreciationTotal Assets CashAccounts ReceivableDirect Materials InventoryFinished Goods InventoryTotal AssetsAccumulated DepreciationTotal Liabilities and Equities $ Accounts PayableTotal AssetsTaxes PayableNote PayableCommon StockTotal Liabilities and EquitiesRetained Earnings $ Retained EarningsCommon StockAccounts PayableTaxes PayableTotal Liabilities and EquitiesNote PayableTotal Assets Retained EarningsTotal AssetsAccounts PayableTotal Liabilities and EquitiesTaxes PayableNote PayableCommon Stock Taxes PayableNote PayableCommon StockRetained EarningsTotal Liabilities and EquitiesTotal AssetsAccounts Payable Retained EarningsTotal AssetsTaxes PayableAccounts PayableTotal Liabilities and EquitiesNote PayableCommon Stock Note PayableCommon StockTotal AssetsAccounts PayableTaxes PayableRetained EarningsTotal Liabilities and Equities $

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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

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	$ 38,400
Accounts Receivable (net)	37,440
Finished Goods Inventory	31,360
Raw Materials Inventory	4,838
Property, Plant & Equipment	192,000
Accumulated Depreciation	(48,000	)
Total Assets	$256,038
Accounts Payable	$ 11,520
Income Tax Payable	48,166
Common Stock	64,000
Retained Earnings	132,352
Total Liabilities & Owners Equity	$256,038

Quarter
Budgeted revenue	$902,400
Selling and administrative expense	170,496
Interest expense	2,163
Cash	19,696
Cost of Goods Sold	642,157
Accounts receivable	87,360
Direct materials	3,558
Finished goods	37,770
Acounts payable	21,248
Notes payable	26,240

Additional Information:

	Bates & Hill plans to declare and pay dividends totaling $31,360 in January.
	Bates & Hill plans to purchase and pay cash for a piece of land in February at a cost of $46,080.
	Bates & Hill plans to purchase equipment in March at a cost of $38,400.
	Depreciationfor manufacturing overhead$19,200 per month andfor selling and administrative $6,400 per month.

The company expects a 19% income tax rate, and all quarterly taxes are paid in the first month of the following quarter.

(a)


	Your answer is partially correct.

Prepare Bates & Hills pro-forma income statement for the first quarter.

Pro-forma Income Statement
Interest ExpenseCost of Goods SoldIncome Before TaxesIncome Tax ExpenseSales RevenueSelling & Administrative Expense	$
Income Before TaxesSales RevenueIncome Tax ExpenseCost of Goods SoldSelling & Administrative ExpenseInterest Expense
Non-Operating Income / (Loss)Non-Operating ExpensesNet Income / (Loss)Gross MarginOperating Income / (Loss)
Selling & Administrative ExpenseSales RevenueIncome Tax ExpenseInterest ExpenseCost of Goods SoldIncome Before Taxes
Gross MarginNon-Operating ExpensesOperating Income / (Loss)Net Income / (Loss)Non-Operating Income / (Loss)
Selling & Administrative ExpenseCost of Goods SoldSales RevenueInterest ExpenseIncome Before TaxesIncome Tax Expense
Sales RevenueIncome Before TaxesSelling & Administrative ExpenseInterest ExpenseCost of Goods SoldIncome Tax Expense
Selling & Administrative ExpenseSales RevenueInterest ExpenseIncome Tax ExpenseIncome Before TaxesCost of Goods Sold
Non-Operating Income / (Loss)Non-Operating ExpensesNet Income / (Loss)Gross MarginOperating Income / (Loss)	$

SHOW ANSWER

LINK TO TEXT

Attempts: 1 of 1 used

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

Pro-forma Balance Sheet
Accounts ReceivableFinished Goods InventoryAccumulated DepreciationDirect Materials InventoryCashTotal AssetsTotal Liabilities and Equities	$
Accounts ReceivableFinished Goods InventoryAccumulated DepreciationDirect Materials InventoryTotal Liabilities and EquitiesCashTotal Assets
CashFinished Goods InventoryAccumulated DepreciationAccounts ReceivableTotal AssetsDirect Materials InventoryTotal Liabilities and Equities
Finished Goods InventoryAccounts ReceivableAccumulated DepreciationDirect Materials InventoryCashTotal AssetsTotal Liabilities and Equities
CashAccumulated DepreciationAccounts ReceivableDirect Materials InventoryProperty, Plant & EquipmentTotal AssetsTotal Liabilities and Equities
Total Liabilities and EquitiesAccounts ReceivableCashDirect Materials InventoryFinished Goods InventoryAccumulated DepreciationTotal Assets
CashAccounts ReceivableDirect Materials InventoryFinished Goods InventoryTotal AssetsAccumulated DepreciationTotal Liabilities and Equities	$
Accounts PayableTotal AssetsTaxes PayableNote PayableCommon StockTotal Liabilities and EquitiesRetained Earnings	$
Retained EarningsCommon StockAccounts PayableTaxes PayableTotal Liabilities and EquitiesNote PayableTotal Assets
Retained EarningsTotal AssetsAccounts PayableTotal Liabilities and EquitiesTaxes PayableNote PayableCommon Stock
Taxes PayableNote PayableCommon StockRetained EarningsTotal Liabilities and EquitiesTotal AssetsAccounts Payable
Retained EarningsTotal AssetsTaxes PayableAccounts PayableTotal Liabilities and EquitiesNote PayableCommon Stock
Note PayableCommon StockTotal AssetsAccounts PayableTaxes PayableRetained EarningsTotal Liabilities and Equities	$