Charles Wilson, Sunland & Joseph's 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 company's balance sheet as of December 31 is as follows: $32.100 22,500 98,200 Cash Finished Goods Inventory Accounts Receivable (net) Raw Materials Inventory Property, Plant & Equipment Accumulated Depreciation 49,280 300,000 (75,000) Total Assets $427,080 Accounts Payable $ 17,000 26,400 100,000 Income Tax Payable Common Stock Retained Earnings Total Liabilities & Owners Equity 283,680 $427,080 Quarter Selected Estimates Budgeted revenue $1,783,300 Selling and administrative expense 427,700 Interest expense 370 Cash 50,380 1,390,630 174,720 29,160 Cost of Goods Sold Accounts receivable (net) Direct materials Finished goods Accounts payable Notes payable 104,720 218,700 5,000 Additional Information: Sunland & Joseph plans to purchase and pay cash for a piece of land in February at a cost of $90,000. Sunland & Joseph plans to purchase equipment in March at a cost of $30,000. Depreciation for manufacturing overhead $42.000 per quarter and for selling and administrative $30,000 per month. The company expects a 30% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. (a) Your answer is correct. Prepare Sunland & Joseph's pro-forma income statement for the first quarter. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Sunland& Hill Income Statement First Quarter Sales Revenue $ 1783300 Cost of Goods Sold 1390630 i Gross Margin 392670 Selling & Administrative Expense 427700 Operating Income /(Loss) -35030 Interest Expense 370 Income Before Taxes -35400 Income Tax Expense Net Income /(Loss) $ -35400 Prepare Sunland & Joseph's pro-forma balance sheet as of March 31. Sunland& Hill Balance Sheet March 31 >