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Budget Inc. has completed all operating budgets except the income statement for 2022. Selected data from these budgets follow. Sales: $300,000 Purchases of raw materials:
Budget Inc. has completed all operating budgets except the income statement for 2022. Selected data from these budgets follow.
- Sales: $300,000
- Purchases of raw materials: $80,000
- Ending inventory of raw materials: $15,000
- Direct labor: $60,000
- Manufacturing overhead: $73,000, including $3,000 of depreciation expense
- Selling and administrative expenses: $36,000, including depreciation expense of $1,000
- Interest expense: $5,000
- Principal payment on long-term note: $20,000 each year
- Dividends declared: $20,000
- Income tax rate: 30%
Other information:
- Assume that there are no work-in-process or finished goods inventories.
- Year-end accounts receivable: 4% of 2022 sales.
- Year-end accounts payable: 50% of ending inventory of raw materials.
- Interest, direct labor, manufacturing overhead, and selling and administrative expenses other than depreciation are paid as incurred.
- Dividends declared and income taxes for 2022 will not be paid until 2023.
Budget Inc. | ||
Balance Sheet | ||
31-Dec-21 | ||
Assets | ||
Current assets | ||
Cash | $20,000 | |
Raw materials inventory | 10,000 | |
Total current assets | 30,000 | |
Long term investment | 88,000 | |
Property, plant, and equipment | ||
Equipment | $40,000 | |
Less: Accumulated depreciation | 4,000 | 36,000 |
Total assets | $154,000 | |
Liabilities and Stockholders' Equity | ||
Liabilities | ||
Accounts payable | $5,000 | |
Long-term notes payable | 110,000 | |
Total liabilities | $115,000 | |
Stockholders' equity | ||
Common stock | 25,000 | |
Retained earnings | 14,000 | |
Total stockholders' equity | 39,000 | |
Total liabilities and stockholders' equity | $154,000 |
Please want a budgeted multiple-step income statement for the year ending December 31, 2022, and a budgeted classified balance sheet as of December 31, 2022 Please provide a breakdown in calculation if possible
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