*Exercise 5-30 Bill Thomas, Sunland & 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 $ 33,600 32,760 27,440 4,234 168,000 (42,000 ) $224,034 $ 10,080 42,146 56,000 115,808 $224,034 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 $789,600 149,184 1,893 17,234 561,887 76,440 3,114 33,048 18,592 22,960 Additional Information: Bates & Hill plans to declare and pay dividends totaling $27,440 in January. Bates & Hill plans to purchase and pay cash for a piece of land in February at a cost of $40,320. Bates & Hill plans to purchase equipment in March at a cost of $33,600 Depreciation for manufacturing overhead $16,800 per month and for selling and administrative $5,600 per month. The company expects a 17% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. Prepare Sunland & Hill's pro-forma income statement for the first quarter. (Round answers to 0 decimal places, e.g. 5,275.) Sunland & Hill Income Statement First Quarter Prepare Sunland & Hill's pro-forma balance sheet as of March 31. Sunland & Hill Balance Sheet March 31 |