Nature's Way in Green Bay, WI is preparing its budgeted balance sheet. Below is information needed to complete the budgeted balance sheet:

The cash budget for March shows an ending bank loan of $10,000 and an ending cash balance of $48,000.

The sales budget for March indicates sales of $120,000. Accounts receivable are expected to be 70% of the current-month sales.

The merchandise purchases budget indicates that $89,000 in merchandise will be purchased on account in March. Purchases on account are paid 100% in the month following the purchase. Ending inventory for March is predicted to be 600 units at a cost of $35 each.

The budgeted income statement for March shows net income of $48,000. Depreciation expense of $1,000 and $26,000 in income tax expense were used in computing net income for March. Accrued taxes will be paid in April.

The balance sheet for February shows equipment of $84,000 with accumulated depreciation of $30,000, common stock of $25,000, and ending retained earnings of $8,000. There are no changes budgeted in the equipment or common stock accounts.

Prepare a budgeted balance sheet at the end of March. HINT - You will need to include net income in determining ending retained earnings.