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Balance Sheet December 31, 2016 Assets Current Assets Cash $7,500 Accounts receivable 73,500 Finished goods inventory (1,500 units) 26,190 Total current assets 107,190 Property, Plant, and Equipment Equipment $40,580 Less: Accumulated depreciation 10,980 29,600 Total assets $ 1 36,790 Liabilities and Stockholders' Equity Liabilities Notes payable $26,260 Accounts payable 46,550 Total liabilities 72,810 Stockholders' Equity Common stock $38,510 Retained earnings 25,470 Total stockholders' equity 63,980 Total liabilities and stockholders' equity $ 135.790 Budgeted data for the year 2017 include the following. 2017 meannatal Sales budget (8,000 units at $32) $76,800 $256,000 Direct materials used 14,080 62,500 Direct labor 12,500 50,900 Manufacturing overhead applied 10,000 49,170 Budgeted data for the year 2017 include the following. 2017 Quarter 4 Total Sales budget (8,000 units at $32) $76,800 $256,000 Direct materials used 14,080 62,500 Direct labor 12,500 50,900 Manufacturing overhead applied 10,000 49,170 Selling and administrative expenses 15,320 75,000 To meet sales requirements and to have 2,500 units of nished goods on hand at December 31, 2017, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $18. Krause uses the rst-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 40% of income before income taxes. In 2017, the company expects to declare and pay an $8,620 cash dividend. The company's cash budget shows an expected cash balance of $5,880 at December 31, 2017. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2017, the company expects to purchase additional equipment costing $10,290. $4,816 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Krause expects to pay $8,260 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $3,500, above). Accounts payable at December 31, 2017, includes amounts due suppliers (see above) plus other accounts payable of $8,260. Unpaid income taxes at December 31 will be $7,770. Y (3) Prepare a budgeted statement of cost of goods sold. KRAUSE INDUSTRIES Budgeted Cost of Goods Sold For the Year Ending December 31, 2017 $ Sales 256000 Cost of Goods Sold 4b Finished Goods Inventory, 1/1/17 $ 26190 4| Cost of Goods Manufactured Cost of Goods Available For Sale 4! Income Tax Expense 4! Interest Expense Net Income / (Loss) 4! .m, Click if you would like to Show Work for this question: Qpen Show Work
