Kurian Industries' balance sheet at December 31, 2015, is presented below. KURIAN INDUSTRIES Balance Sheet December 31, 2015 Current assets Cash Accounts receivable Assets Finished goods inventory (2,500 units) Total current assets Equipment Less: Accumulated depreciation Total assets $7,490 82,000 29,700 119,190 $40,200 10,300 29,900 $149,090 Liabilities and Shareholders' Equity Liabilities Notes payable $24,700 Accounts payable 44,700 Total liabilities 69,400 Shareholders' equity Common stock $50,000 Retained earnings 29,690 Total shareholders' equity 79,690 Total liabilities and shareholders' equity $149,090 Budgeted data for the year 2016 include the following. Q4 of 2016 Year 2016 Total Sales budget (8,500 units at $39) $99,450 $331,500 Direct materials used 16,600 69,700 Direct labor 12,400 56,000 Manufacturing overhead applied Selling and administrative expenses 10,700 17,900 35,800 75,700 To meet sales requirements and to have 2,500 units of finished goods on hand at December 31, 2016, the production budget shows 8,500 required units of output. The total unit cost of production is expected to be $19. Kurian Industries uses the first-in, first-out (FIFO) inventory costing method. Selling and administrative expenses include $4,300 for depreciation on equipment. The company expects interest expense to be $3,700 for the year and income taxes to be 30% of income before income taxes. All sales and purchases are on account. The company expects to collect 60% of the quarterly sales in cash within the quarter and the remainder in the following quarter. It pays direct materials purchased from suppliers 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 2016, the company expects to purchase additional equipment costing $17,700. It expects to pay $8,100 on notes payable plus all interest due and payable to December 31 (included in interest expense $3,700, above). Accounts payable at December 31, 2016, includes amounts due to suppliers (see above) plus other accounts payable of $6,000. In 2016, the company expects to declare and pay a $4,800 cash dividend. Unpaid income taxes at December 31 will be $9,756. The company's cash budget shows an expected cash balance of $60,846 at December 31, 2016. Prepare a budgeted income statement for 2016. In preparing the income statement, you will need to calculate the cost of goods manufactured (materials + labour + overhead) and finished goods inventory (December 31, 2016). (Round answers to 0 decimal places, e.g. 125.) KURIAN INDUSTRIES Budgeted Income Statement For the Year Ending December 31, 2016 Sales 331500 Cost of goods sold Finished goods inventory, January 1 29700 Cost of goods manufactured 161500 Cost of goods available for sale 191200 Finished goods inventory, December 31 47500 Cost of goods sold 143700 Gross profit 187800 Selling and administrative expenses 75700 112100 Income from operations Interest expense Income before income taxes Income tax expense Net income 3700 108400 32520 75880