Instructions:

The excel doc must be filled with the answers as shown below.

(LO 13-4, 5, 6) 13-62. Comprehensive Budget Plan 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. Page 575 Page 575 PANTHER CORPORATION Expected Account Balances for December 31, Year 2 Cash $ 4,800 Accounts receivable 320,000 Inventory (January 1, year 2) 192,000 Plant and equipment 520,000 Accumulated depreciation $ 164,000 Accounts payable 180,000 Notes payable (due within one year) 200,000 Accrued payables 93,000 Common stock 280,000 Retained earnings 432,800 Sales revenue 2,400,000 Other income 36,000 Manufacturing costs Materials 852,000 Direct labor 872,000 Variable overhead 520,000 Depreciation 20,000 Other fixed overhead 31,000 Marketing 80,000 64,000 180,000 Commissions Salaries Promotion and advertising Administrative Salaries Travel Office costs Income taxes Dividends 64,000 10,000 36,000 20,000 $3.785,800 $3.785,800 Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 450,000 units, and planned sales volume is 400,000 units. Sales and production volume was 300,000 units last year. The company uses a full-absorption costing and Firo inventory system and is subject to a 40 percent income tax rate. The actual income statement for last year follows. PANTHER CORPORATION Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1 Revenues Sales revenue $1,800,000 Other income 60,000 $1,860,000 Expenses Cost of goods sold Materials $ 528,000 Direct labor 540,000 Variable overhead 324,000 Fixed overhead 48,000 $1.440,000 192.000 $1.632,000 192,000 51.440,000 Parce 576 $54.000 60,000 126,000 240,000 Beginning inventory Ending inventory 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 eamings $ 56,000 8,000 32,000 96,000 33,600 1,809,600 50,400 402,400 $452,800 20,000 $ 432,800 Required Prepared a budgeted income statement and balance sheet. B D E F G PANTHER CORPORATION Expected Account Balances for December 31, Year 2 $ 4,800 320,000 192,000 520,000 $ 164,000 180,000 200,000 93,000 280,000 432,800 2,400,000 36,000 Cash Accounts receivable Inventory (January 1, Year 2) Plant and equipment Accumulated depreciation Accounts payable Notes payable (due within one year) Accrued payables Common stock Retained earnings Sales revenue Other income Manufacturing costs Materials Direct labor Variable overhead Depreciation Other fixed overhead Marketing Commissions Salaries Promotion and advertising Administrative Salaries Travel Office costs Income taxes Dividends 852,000 872,000 520,000 20,000 31,000 80,000 64,000 180,000 64,000 10,000 36,000 20,000 $ 3,785,800 $ 3,785,800 PANTHER CORPORATION Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1 $ 1,800,000 60,000 $ 1,860,000 Revenues Sales revenue Other income Expenses Cost of goods sold Materials Direct labor Variable overhead Fixed overhead $ 528,000 540,000 324,000 48,000 $ 1,440,000 192,000 1,632,000 192,000 $ 1,440,000 Beginning inventory $ 54,000 60,000 126,000 240,000 $ Ending inventory 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 56,000 8,000 32,000 96,000 33,600 1,809,600 50,400 402,400 452,800 20,000 432,800 $ Additional Informati Paste A ab 125 B C D E F G 5 Additional Information: B 9 0 1 2 3 4 25 Scheduled production for this year in units Planned sales volume for this year in units Sales and production volume last year in units Income tax rate 450,000 400,000 300,000 40% PANTHER CORPORATION Budget Income Statement (in thousands) Actual For the Yoar Ended December 31, (Year 1) Budgeted For the Year Ended December 31, (Year 2) $ $ $ 1,800,000 60,000 $ 1,860,000 $ 1 2 3 4 5 6 7 8 9 0 1 Revenues: Sales revenue Other income Total Revenue Expenses Cost of Goods Manufactured & sold: Materials Direct labor Variable overhead Fixed overhead (depreciation and other) $ $ 528,000 540,000 324,000 48,000 $ 1,440,000 192,000 1,632,000 192,000 $ 1,440,000 Beginning Inventory ES 26 27 28 29 30 $ 54,000 60,000 126,000 240,000 Ending Inventory Selling & Marketing Salaries Commissions Promotion and advertising General & administrative: Salaries Travel Office costs Income taxes (credit) Total Expenses Operating profit (Loss) 32 $ 56,000 8,000 32,000 34 35 36 96,000 33,600 1,809,600 $ 50,400 39 40 PAMTLI 38 39 PANTHER CORPORATION Budget Balance Sheet (in thousands) Actual December 31 (Year 2) 40 41 42 43 44 45 46 Current Assets 47 Cash 48 Accounts receivable 49 Inventory 50 Income Tax Receivable 51 Total Current Assets 52 plant and equipment 53 Less Accumulated Depreciation 54 Total Assets 55 56 Current Liabilities 57 Accounts payable 58 Accrued payables 59 Notes payable (due within one year) 60 Total Current Liabilites 61 Shareholders' Equity 62 Common stock 63 64 $ SS Retained earnings Total Shareholder's Equty Total Liabilities and Shareholder's Equty 65 67 $ $ $ 67 68 NOTES: 69 Computation of ending inventory: 70 Cost of goods sold, Yr 1 71 Quantity sold in Yr 1 72 Cost per Unit 73 74 Beginning inventory cost 75 Cost per unit 76 Units in beginning inventory 77 Increase (decrease) in Inventory 78 Units in ending inventory 79 80 Manufacturing Costs, Yr 2 81 Units Manufactured 82 Cost per Units 83 Ending Units 84 Cost of Ending Inventory 85 86 Computation of Income Tax: 87 Sales and other income 88 Cost of Goods Sold 89 90 91 92 93 94 $ Selling & Marketing Expenses General & Administrative Expenses Total Expenses Net Income (Loss) Tax Rate Tax Payable (Receivable) $ 40% 95 96 97 98 99 Computation of Ending Retained Earnings: Expected beginning balance Net Income (Loss) Less Dividends 100 Ending Retained Earnings 101 102 203 3104 (LO 13-4, 5, 6) 13-62. Comprehensive Budget Plan 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. Page 575 Page 575 PANTHER CORPORATION Expected Account Balances for December 31, Year 2 Cash $ 4,800 Accounts receivable 320,000 Inventory (January 1, year 2) 192,000 Plant and equipment 520,000 Accumulated depreciation $ 164,000 Accounts payable 180,000 Notes payable (due within one year) 200,000 Accrued payables 93,000 Common stock 280,000 Retained earnings 432,800 Sales revenue 2,400,000 Other income 36,000 Manufacturing costs Materials 852,000 Direct labor 872,000 Variable overhead 520,000 Depreciation 20,000 Other fixed overhead 31,000 Marketing 80,000 64,000 180,000 Commissions Salaries Promotion and advertising Administrative Salaries Travel Office costs Income taxes Dividends 64,000 10,000 36,000 20,000 $3.785,800 $3.785,800 Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 450,000 units, and planned sales volume is 400,000 units. Sales and production volume was 300,000 units last year. The company uses a full-absorption costing and Firo inventory system and is subject to a 40 percent income tax rate. The actual income statement for last year follows. PANTHER CORPORATION Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1 Revenues Sales revenue $1,800,000 Other income 60,000 $1,860,000 Expenses Cost of goods sold Materials $ 528,000 Direct labor 540,000 Variable overhead 324,000 Fixed overhead 48,000 $1.440,000 192.000 $1.632,000 192,000 51.440,000 Parce 576 $54.000 60,000 126,000 240,000 Beginning inventory Ending inventory 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 eamings $ 56,000 8,000 32,000 96,000 33,600 1,809,600 50,400 402,400 $452,800 20,000 $ 432,800 Required Prepared a budgeted income statement and balance sheet. B D E F G PANTHER CORPORATION Expected Account Balances for December 31, Year 2 $ 4,800 320,000 192,000 520,000 $ 164,000 180,000 200,000 93,000 280,000 432,800 2,400,000 36,000 Cash Accounts receivable Inventory (January 1, Year 2) Plant and equipment Accumulated depreciation Accounts payable Notes payable (due within one year) Accrued payables Common stock Retained earnings Sales revenue Other income Manufacturing costs Materials Direct labor Variable overhead Depreciation Other fixed overhead Marketing Commissions Salaries Promotion and advertising Administrative Salaries Travel Office costs Income taxes Dividends 852,000 872,000 520,000 20,000 31,000 80,000 64,000 180,000 64,000 10,000 36,000 20,000 $ 3,785,800 $ 3,785,800 PANTHER CORPORATION Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1 $ 1,800,000 60,000 $ 1,860,000 Revenues Sales revenue Other income Expenses Cost of goods sold Materials Direct labor Variable overhead Fixed overhead $ 528,000 540,000 324,000 48,000 $ 1,440,000 192,000 1,632,000 192,000 $ 1,440,000 Beginning inventory $ 54,000 60,000 126,000 240,000 $ Ending inventory 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 56,000 8,000 32,000 96,000 33,600 1,809,600 50,400 402,400 452,800 20,000 432,800 $ Additional Informati Paste A ab 125 B C D E F G 5 Additional Information: B 9 0 1 2 3 4 25 Scheduled production for this year in units Planned sales volume for this year in units Sales and production volume last year in units Income tax rate 450,000 400,000 300,000 40% PANTHER CORPORATION Budget Income Statement (in thousands) Actual For the Yoar Ended December 31, (Year 1) Budgeted For the Year Ended December 31, (Year 2) $ $ $ 1,800,000 60,000 $ 1,860,000 $ 1 2 3 4 5 6 7 8 9 0 1 Revenues: Sales revenue Other income Total Revenue Expenses Cost of Goods Manufactured & sold: Materials Direct labor Variable overhead Fixed overhead (depreciation and other) $ $ 528,000 540,000 324,000 48,000 $ 1,440,000 192,000 1,632,000 192,000 $ 1,440,000 Beginning Inventory ES 26 27 28 29 30 $ 54,000 60,000 126,000 240,000 Ending Inventory Selling & Marketing Salaries Commissions Promotion and advertising General & administrative: Salaries Travel Office costs Income taxes (credit) Total Expenses Operating profit (Loss) 32 $ 56,000 8,000 32,000 34 35 36 96,000 33,600 1,809,600 $ 50,400 39 40 PAMTLI 38 39 PANTHER CORPORATION Budget Balance Sheet (in thousands) Actual December 31 (Year 2) 40 41 42 43 44 45 46 Current Assets 47 Cash 48 Accounts receivable 49 Inventory 50 Income Tax Receivable 51 Total Current Assets 52 plant and equipment 53 Less Accumulated Depreciation 54 Total Assets 55 56 Current Liabilities 57 Accounts payable 58 Accrued payables 59 Notes payable (due within one year) 60 Total Current Liabilites 61 Shareholders' Equity 62 Common stock 63 64 $ SS Retained earnings Total Shareholder's Equty Total Liabilities and Shareholder's Equty 65 67 $ $ $ 67 68 NOTES: 69 Computation of ending inventory: 70 Cost of goods sold, Yr 1 71 Quantity sold in Yr 1 72 Cost per Unit 73 74 Beginning inventory cost 75 Cost per unit 76 Units in beginning inventory 77 Increase (decrease) in Inventory 78 Units in ending inventory 79 80 Manufacturing Costs, Yr 2 81 Units Manufactured 82 Cost per Units 83 Ending Units 84 Cost of Ending Inventory 85 86 Computation of Income Tax: 87 Sales and other income 88 Cost of Goods Sold 89 90 91 92 93 94 $ Selling & Marketing Expenses General & Administrative Expenses Total Expenses Net Income (Loss) Tax Rate Tax Payable (Receivable) $ 40% 95 96 97 98 99 Computation of Ending Retained Earnings: Expected beginning balance Net Income (Loss) Less Dividends 100 Ending Retained Earnings 101 102 203 3104