*Exercise 5-30 Bill Thomas, Waterway & 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: $ 43,200 42,120 35,280 5,443 216,000 (54,000 ) 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 $288,043 $ 12,960 54,187 72,000 148,896 $288,043 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 $1,015,200 191,808 2,434 22,158 722,426 98,280 4,003 42,491 23,904 29,520 Additional Information: Bates & Hill plans to declare and pay dividends totaling $35,280 in January. Bates & Hill plans to purchase and pay cash for a piece of land in February at a cost of $51,840. Bates & Hill plans to purchase equipment in March at a cost of $43,200. Depreciation for manufacturing overhead $21,600 per month and for selling and administrative $7,200 per month. Waterway & Hill Income Statement First Quarter Prepare Waterway & Hill's pro-forma balance sheet as of March 31. Waterway & Hill Balance Sheet March 31 $