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 vear. 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: PANTHER CORPORATION bepected Account balances for December 31, Year 2 6,100 Accounts receivable 333.000 Tnventory (January 1. Year 2) 318.000 Plant and equipment 585.000 Reculated depreciation S177.000 Accounts payable 193.000 Notes payable due within one year) 213.000 Mored payable 106,000 Common stock 410,000 Betained earnings 21.500 2.590.000 other income 52.000 Direct labor Variable Overhead elation Other fixed overhead 06).000 99.000 529.000 33.000 D Comisione 106.000 27000 206,000 16. SO Income 13,000 Adjustments for the change in Inventory and for Income taxes have not been made. The scheduled production for this year is 415.000 units, and planned sales volume is 355,000 units. Sales and production volume was 265,000 units last year. The company uses au absorption costing and FIFO Inventory system and is subject to a 40 percent income tax rate. The actual income statement for last year follows: PANTHEON CORPORATION Statent of Income and retained Earnings For the budget Your Ended December 31, Year 1 Sales revenue Other income $2,030,000 82,000 $2,112,000 Cost of goods sold Direct labor Variable overhead Pixed overhand 610.000 622.000 297,000 Beginning inventory 91.320.000 8.000 1.100.000 310,000 1.590,000 anding inventory Balling 57.000 73.000 239.000 279.000 Promotion and advertising General and administrative 3 69.000 14.000 128.000 16.000 Operating profit 3 69.000 235,500 04.600 33.000 00 Ending retained earnings Required: Prepared a budgeted income statement and balance sheet Prepared a budgeted Income statement. (Round "Cost per unit" to 2 decimal places. Do not round any other intermediate calculations) PANTHER CON Budgeted Income Statement For the Year End December 31, Year 2 Sales revenue $ 2,530,000 62.000 Other income Total Revenue $ 2,592,000 xosos Cost of goods manufactured & sold Variable overhead Foxed Overhead 963,000 987.000 629.000 77.000 2,656,000 318.000 2,974,000 279,522 5 Boginning inventory Ending inventory 2,694,478 Marketing Salaries 77.000 106,000 206,000 Promotions and overtising 389.000 Administ 77,000 16 500 49000 142.500 (633.978 2.592.000 Prepared a budgeted balance sheet. (Round "Cost per unit" to 2 decimal places. Do not round any other intermediate calculations.) PANTHER CORPORATION Budgeted Baland Budgeted December 31, Year 2 Current Assets 6.100 Accounts receivable 333.000 279.522 tax receivable 633.978 1.252.600 $ 1.252,600 Total curents Shareholder ogulty Total shareholders equity Total hd shareholders uity C andle
