Bramble Industries' balance sheet at December 31, 2021, is presented below. Current Assets Cash BRAMBLE INDUSTRIES Balance Sheet December 31, 2021 Assets Accounts receivable Finished goods inventory (1.440 units) Total current assets Property, Plant, and Equipment Equipment Less: Accumulated depreciation Total assets Liabilities $7,200 70,560 23,040 100,800 $38,400 9,600 28,800 $129,600 Liabilities and Stockholders' Equity Notes payable Accounts payable Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Budgeted data for the year 2022 include the following. 2022 $24,000 43,200 67,200 $38,400 24,000 62,400 $129,600 Quarter 4 Total Sales budget (8,000 units at $32) $76,800 $256,000 Direct materials used 16,320 60,000 Direct labor 12,000 48,864 Manufacturing overhead applied 9,600 46,656 Selling and administrative expenses 17,280 72,000 To meet sales requirements and to have 2,400 units of finished goods on hand at December 31, 2022, the production budget shows 8,640 required units of output. The total unit cost of production is expected to be $18. Bramble uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,360 for the year. Income taxes are expected to be 20% of income before income taxes. In 2022, the company expects to declare and pay an $7,680 cash dividend. The company's cash budget shows an expected cash balance of $19,696 at December 31, 2022. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2022, the company expects to purchase additional equipment costing $8,640. $3,920 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Bramble expects to pay $7,680 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $3,360, above). Accounts payable at December 31, 2022, includes amounts due suppliers (see above) plus other accounts payable relating to manufacturing overhead of $6,912. Unpaid income taxes at December 31 will be $4,800. (a) Your Answer Correct Answer (Used) Prepare a budgeted statement of cost of goods sold. BRAMBLE INDUSTRIES Budgeted Cost of Goods Sold For the Year Ending December 31, 2022 (b) Finished Goods Inventory, 1/1/22 Cost of Goods Manufactured Direct Materials Used $ 60,000 Direct Labor Manufacturing Overhead Applied Cost of Goods Available For Sale Finished Goods Inventory, 12/31/22 Cost of Goods Sold 48,864 46,656 $ 23,040 $ 155,520 178,560 43,200 135,360 (b) Prepare a budgeted multiple-step income statement for 2022. BRAMBLE INDUSTRIES Budgeted Income Statement For the Year Ending December 31, 2022 Sales Revenue Cost of Goods Sold Gross Profit 256,000 135,360 Selling and Administrative Expenses 72000 Income from Operations Interest Expense Income before Income Taxes Income Tax Expense Net Income / (Loss) $ eTextbook and Media Save for Later Last saved 1 second ago.. Attempts: 0 of 3 used Submit Answer Prepare a retained earnings statement for 2022. (List items that increase retained earnings first.) SWIFTY INDUSTRIES Budgeted Retained Earnings Statement For the Year Ending December 31, 2022 Prepare a budgeted classified balance sheet at December 31, 2022. (List Current Assets in order of liquidity.) SWIFTY INDUSTRIES Budgeted Balance Sheet Assets A A $ Liabilities and Stockholders' Equity SA < < $