Panther Corporation appeared to be experiencing a good vear. 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 sumener accounting intern, ta 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 af 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. 184.000 1 200.000 93.000 280.000 412100 2.400.000 36.000 PANTHER CORPORATION Expected Account Balances for December 31, Year 2 Cach 4.800 Accounts receivable 320,000 Inventary January 1 Year 2) 190.000 Plant and equipment 520,000 Accumulated depreciation Accounts payable Nohas pavable on within one year) Accrued payables Common stoc Retained nearrings Salas revenue Other income Manufacturing costs Materials 052.000 Direct labor 872.000 Variable averhead 520.000 Depreciation 20.000 Other fixed overhead 31.000 Marketing Comunisia 80,000 Salarics 14.000 Promotion and adverlising 180,000 Adininistrativo Salaries 84.000 Travel Ofice basis 38,000 Incora laxes Dividends 20,000 $ 3.715.000 S 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 casting and FIFO inventary system and is subicct to a 40 percent income tax rate. The actual income statement far last year follows PANTHER CORPORATION Sletanent of India and Relained Earnings Far the Budget Yeser Ented December 31, Year 1 Revers Sales reven Cher income Expenses Cost of goods sold Materiale $ 1.400,000 60,000 $1,980,000 Direct labor Variable overhead Fixed averhead $ 528.000 540.000 324,000 48,000 S 1440,000 192,000 S 1.632,000 182,000 Beginning inventory $1400.000 Ending inventory Saling $ 54,000 80,000 120.000 240,000 56,000 8,000 32,000 98,000 Cornisins Promotion and advertising General and administrative Salaries Travel OFICIS Income taxe Operating profil Beginning retained earrings Subtotal Les dividenda Ending retained eamings 33,800 $ 1 200.000 50.400 402,100 452.900 20.000 432,800 $ Prepared a budgeted income statement. (Do not round intermediate calculations.) PANTHER CORPORATION Budgeted Income Statement For the Year Ended December 31, Year 2 $ 90,000 Revenue: Sales revenue Other income Total Revenue $ 90,000 Expenses: Cost of goods manufactured & sold: Materials Direct labor Variable overhead Fixed overhead Beginning inventory Ending inventory Marketing: Salaries Commissions Promotions and advertising Administrative: Salaries Travel Office costs Income taxes (credit) Total expenses Operating profit (loss) $ 90,000 Prepared a budgeted balance sheet. (Do not round intermediate calculations.) PANTHER CORPORATION Budgeted Balance Sheet Budgeted December 31, Year 2 Current Assets Total current assets Total assets Current liabilities Total current liabilities Shareholders' equity Total shareholders' equity Total liabilities and shareholders' equity
