I need assistance in completing the Budgeted Balance Sheet

Krause Industries' balance sheet at December 31, 2013, is presented below. KRAUSE INDUSTRIES Balance Sheet December 31, 2013 Assets Current Assets Cash $7,500 Accounts receivable 82,500 Finished goods inventory (2,000 units) 34,960 Total current assets $124,960 Property, Plant, and Equipment Equipment $42,480 Less: Accumulated depreciation 12,480 Total assets 30,000 $154,960 Liabilities and Stockholders' Equity Liabilities Notes payable $27,480 Accounts payable 47,480 Total liabilities 74,960 Stockholders' Equity Common stock $47,520 Retained earnings 32,480 Total stockholders' equity 80,000 Total liabilities and stockholders' equity $154,960 Additional information accumulated for the budgeting process is as follows. Budgeted data for the year 2014 include the following. Sales budget (8,000 units at $35) Direct materials used Direct labor Manufacturing overhead applied Selling and administrative expenses 4th Qtr. of 2014 Year 2014 Total $84,000 12,040 12,500 10,000 $280,000 69,400 56,600 51,520 15,520 76,000 To meet sales requirements and to have 3,000 units of finished goods on hand at December 31, 2014, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $20. Krause Industries uses the first-in, first-out (FIFO) inventory costing method. Selling and administrative expenses include $13,018 for depreciation on equipment. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 40% of income before income taxes. 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 2014, the company expects to purchase additional equipment costing $21,480. It expects to pay $10,480 on notes payable plus all interest due and payable to December 31 (included in interest expense $3,500, above). Accounts payable at December 31, 2014, include amounts due suppliers (see above) plus other accounts payable of $8,180. In 2014, the company expects to declare and pay an $7,480 cash dividend. Unpaid income taxes at December 31 will be $7,480. The company's cash budget shows an expected cash balance of $7,950 at December 31, 2014. (a) Your answer is correct. Prepare a budgeted income statement for 2014. KRAUSE INDUSTRIES Budgeted Income Statement For the Year Ending December 31, 2014 $ Sales 280000 Cost of Goods Sold Finished Goods Inventory, January 1 $ 34960 Cost of Goods Manufactured 177520 Cost of Goods Available For Sale 212480 Finished Goods Inventory, December 31 60000 Cost of Goods Sold 152480 Gross Profit 127520 Selling and Administrative Expenses 76000 Income from Operations 51520 Interest Expense 3500 Income before Income Taxes 48020 Income Tax Expense 19208 Net Income/ (Loss) Click if you would like to Show Work for this question: $ 28812 Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used (b) Prepare a budgeted balance sheet at December 31, 2014. (List assets in order of liquidity.) KRAUSE INDUSTRIES Budgeted Balance Sheet December 31, 2014 Assets $ $ $ : $ Liabilities and Stockholders' Equity $ $ $ $