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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 $ 37,200
Accounts Receivable (net) 36,270
Finished Goods Inventory 30,380
Raw Materials Inventory 4,687
Property, Plant & Equipment 186,000
Accumulated Depreciation (46,500 )
Total Assets $248,037
Accounts Payable $ 11,160
Income Tax Payable 46,661
Common Stock 62,000
Retained Earnings 128,216
Total Liabilities & Owners Equity $248,037
Quarter
Budgeted revenue $874,200
Selling and administrative expense 165,168
Interest expense 2,096
Cash 19,081
Cost of Goods Sold 622,089
Accounts receivable 84,630
Direct materials 3,447
Finished goods 36,589
Acounts payable 20,584
Notes payable 25,420
Additional Information:
Bates & Hill plans to declare and pay dividends totaling $30,380 in January.
Bates & Hill plans to purchase and pay cash for a piece of land in February at a cost of $44,640.
Bates & Hill plans to purchase equipment in March at a cost of $37,200.
Depreciation for manufacturing overhead $18,600 per month and for selling and administrative $6,200 per month.
The company expects a 19% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. Warning

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(a) Prepare Bates & Hills pro-forma income statement for the first quarter.
Pro-forma Income Statement
Sales RevenueIncome Tax ExpenseCost of Goods SoldIncome Before TaxesSelling & Administrative ExpenseInterest ExpenseEAT_1377237710465_0_8861792937752919 $
Income Tax ExpenseSelling & Administrative ExpenseInterest ExpenseIncome Before TaxesSales RevenueCost of Goods SoldEAT_1377237710465_0_6667479173579823
Operating Income / (Loss)Non-Operating ExpensesNet Income / (Loss)Non-Operating Income / (Loss)Gross MarginEAT_1377237853454_0_6593388733661938
Income Tax ExpenseSales RevenueIncome Before TaxesCost of Goods SoldSelling & Administrative ExpenseInterest ExpenseEAT_1377237710465_0_15508849429794191
Operating Income / (Loss)Non-Operating ExpensesNet Income / (Loss)Non-Operating Income / (Loss)Gross MarginEAT_1377237853454_0_6416179772076077
Selling & Administrative ExpenseSales RevenueCost of Goods SoldInterest ExpenseIncome Tax ExpenseIncome Before TaxesEAT_1377237710465_0_2864418859849044
Cost of Goods SoldSales RevenueIncome Tax ExpenseSelling & Administrative ExpenseInterest ExpenseIncome Before TaxesEAT_1377237710465_0_35444401093891464
Sales RevenueIncome Before TaxesCost of Goods SoldSelling & Administrative ExpenseInterest ExpenseIncome Tax ExpenseEAT_1377237710465_0_15276674134748902
Net Income / (Loss)Non-Operating Income / (Loss)Gross MarginOperating Income / (Loss)Non-Operating ExpensesEAT_1377237853454_0_40795922474020974 $
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