Exercise 5-30 Bill Thomas, Concord & Hill'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 of December 31 is as follows: Cash Accounts Receivable (net) Finished Goods Inventory Raw Materials Inventory Property, Plant & Equipment Accumulated Depreciation Total Assets Accounts Payable Income Tax Payable Common Stock Retained Earnings Total Liabilities & Owners Equity $ 43,800 42,705 35,770 5,519 219,000 (54,750 ) $292,044 $ 13,140 54,940 73,000 150,964 $292,044 Selected Estimates Budgeted revenue Selling and administrative expense Interest expense Cash Cost of Goods Sold Accounts receivable (net) Direct materials Finished goods Acounts payable Notes payable Quarter $1,029,300 194,472 2,467 22,466 732,460 99,645 4,059 43,081 24,236 29,930 Additional Information: Bates & Hill plans to declare and pay dividends totaling $35,770 in January. Bates & Hill plans to purchase and pay cash for a piece of land in February at a cost of $52,560. Bates & Hill plans to purchase equipment in March at a cost of $43,800. Depreciation for manufacturing overhead $21,900 per month and for selling and administrative $7,300 per month. The company expects a 22% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. Prepare Concord & Hill's pro-forma income statement for the first quarter. (Round answers to 0 decimal places, e.g. 5,275.) Concord & Hill Income Statement First Quarter Sales Revenue 1029300 Cost of Goods Sold 732460 Gross Margin 296840 Selling & Administrative Expense 194472 Operating Income / (Loss) 102368 Interest Expense 2467 Income Before Taxes 99901 Income Tax Expense Net Income / (Loss) Prepare Concord & Hill's pro-forma balance sheet as of March 31. Concord & Hill Balance Sheet March 31 Cash 22466 $ Accounts Receivable 99645 Finished Goods Inventory 43081 Direct Materials Inventory V 4059 Property, Plant & Equipment v Accumulated Depreciation Total Assets Accounts Payable $ 13140 Taxes Payable Note Payable 29930 Common Stock Retained Earnings Total Liabilities and Equities V