heducation.com get Project i Saved Panther Corporation appeared to be experiencing a good year. Sales in the first quarter were one-third ahead of last year, and the sales department predicted that this rate would continue throughout the entire year. The controller asked Janet Nomura, a summer accounting intern, to prepare a draft forecast for the year and to analyze the differences from last year's results. She based the forecast on actual results obtained in the first quarter plus the expected costs of production to be completed in the remainder of the year. She worked with various department heads (production, sales, and so on) to get the necessary information. The results of these efforts follow: PANTHER CORPORATION Expected Account Balances for December 31, Year 2 Cash 6,600 Accounts receivable 338,000 Inventory (January 1, Year 2) 288,000 Plant and equipment 610,000 Accumulated depreciation $ 182,000 Accounts payable 198,000 Notes payable (due within one year) 218,000 Accrued payables 111,000 Common stock 460,000 Retained earnings 788,600 Sales revenue 2,580,000 Other income 72,000 Manufacturing costs Materials 962,890 Direct labor 990,000 Variable overhead 721,000 Denner 38,000 Other fixed overhead 49,000 Marketing Commissions 116,000 Salaries 82,000 Promotion and advertising 2116,000 Administrative Salaries 82,000 Travel office costs 54.000 Depreciation 19,000 Pres BE Mert 210,000 PIUMULUI arlu duvertising Administrative Salaries Travel Office costs Income taxes Dividends 82,000 19,000 54,000 38,000 $ 4,609,600 $4,609,600 Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 400,000 units, and planned sales volume is 340,000 units. Sales and production volume was 240,000 units last year. The company uses a full- absorption costing and FIFO inventory system and is subject to a 40 percent income tax rate. The actual income statement for last year follows: $2,001,000 PANTHER CORPORATION Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1 Revenues Sales revenue $ 1,920,000 Other income 81,000 Expenses Cost of goods sold Materials $ 521,800 Direct labor 571, 900 Variable overhead 282,000 Fixed overhead 66,000 $ 1,449,000 Beginning inventory 288,000 $ 1,728,900 Ending inventory 288,000 $ 1,440,000 Selling Salaries $ 72,000 Commissions 78,000 Promotion and advertising 144,000 294,000 --- 72,000 78,000 144,000 294,000 $ Selling Salaries Commissions Promotion and advertising General and administrative Salaries Travel Office costs Income taxes Operating profit Beginning retained earnings Subtotal Less dividends Ending retained earnings 74,000 15,500 50,000 139,500 51,000 1,924,500 76,500 750, 100 $ 826,600 38,000 $ 788,600 Required: Prepared a budgeted income statement and balance sheet. Revenue: Sales revenue Other income Total Revenue $ 0 Expenses Cost of goods manufactured & sold: Materials Direct labor Variable overhead Fixed overhead Beginning inventory 0 Ending inventory Marketing: Salaries Commissions Promotions and advertising Administrative: Salaries Travel Office costs Income taxes (credit) Total expenses A