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Krause Industries Balance Sheet December 31, 2013 Assets Current assets Cash $ 7,500? Accounts receivable 82,500 Finished goods inventory (1,000 units) 15,000 Total current assets

Krause Industries

Balance Sheet

December 31, 2013

Assets

Current assets

Cash

$ 7,500?

Accounts receivable

82,500

Finished goods inventory (1,000 units)

15,000

Total current assets

105,000

Property, plant, and equipment

Equipment

$40,000

Less: Accumulated depreciation

10,000

30,000

Total assets

$135,000

Liabilities and Stockholders' Equity

Liabilities

Notes payable

$25,000?

Accounts payable

45,000

Total liabilities

70,000

Stockholders' equity

Common stock

$40,000

Retained earnings

25,000

Total stockholders' equity

65,000

Total liabilities and stockholders' equity???

$135,000

Additional information accumulated for the budgeting process is as follows.

Budgeted data for the year 2014 include the following.

4th Qtr. of 2014

Year 2014 Total

Sales budget (8,000 units at $32)

$76,800

$256,000

Direct materials used

17,000

62,500

Direct labor

12,500

50,900

Manufacturing overhead applied

10,000

48,600

Selling and administrative expenses

18,000

75,000

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 $18. Clarksean Industries uses the first-in, first-out (FIFO) inventory costing method. Selling and administrative expenses include $4,000 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 $9,000. It expects to pay $8,000 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 $6,500. In 2014, the company expects to declare and pay an $8,000 cash dividend. Unpaid income taxes at December 31 will be $5,000. The company's cash budget shows an expected cash balance of $6,980 at December 31, 2014.

Instructions

Prepare a budgeted income statement for 2014 and a budgeted balance sheet at December 31, 2014. In preparing the income statement, you will need to compute cost of goods manufactured and finished goods inventory (December 31, 2014).

This is what I have:

Assets

Current Assets

Cash 6980

Accounts Recievable 33,000

Finished Goods 54,000

Total Current Assets 93,980

Property Plant, and Equipment 40,000

Less: Accumulated Depreciation (14,000) 26,000

Total Assets

Liabilities and Stockholdets Equity

Liabiliies

Notes Payable 17,000

Accounts Payable 15,000

Income Tax Payable 5,000

Total Liabilities 37,000

HELP PLEASE!

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