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Income Statement HELP please! Bill Thomas, Bates & Hill's controller, has received all the budgets prepared by the various operating units and is ready to
Income Statement HELP please!
Bill Thomas, Bates & 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: 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. (a) Prepare Bates & Hill's pro-forma income statement for the first quarterStep by Step Solution
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