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 year. 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 Cash Expected Account Balances for December 31, Year 2 Accounts receivable Inventory (January 1, Year 2) Plant and equipment Accumulated depreciation Accounts payable Notes payable (due within one year) Accrued payables Common stock $ 6,600 338,000 288,000 610,000 $ 182,000 198,000 218,000 111,000 460,000 Retained earnings Sales revenue Other income 788,600 2,580,000 72,000 Materials Manufacturing costs Direct labor Depreciation 962,000 990,000 Variable overhead 721,000 38,000 Other fixed overhead 49,000 Marketing Commissions 116,000 Salaries 82,000 Promotion and advertising 216,000 Administrative Salaries 82,000 Travel 19,000 Office costs 54,000 Income taxes Dividends 38,000 $4,609,600 $4,609,600 Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 400,000 units, and planned sales volume is 340,000 units. Sales and production volume was 240,000 units last year. The company uses a full- absorption costing and FIFO inventory system and is subject to a 40 percent income tax rate. The actual income statement for last year follows: Revenues PANTHER CORPORATION Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1 Sales revenue Other income Expenses Cost of goods sold Materials Direct labor Variable overhead Fixed overhead Beginning inventory Ending inventory Selling $ 521,000 571,000 282,000 66,000 $1,440,000 288,000 $1,728,000 $1,920,000 81,000 $2,001,000 Salaries Commissions Promotion and advertising General and administrative Salaries Travel Office costs Income taxes Operating profit Beginning retained earnings Subtotal Less dividends Ending retained earnings Required: 288,000 $1,440,000 $ 72,000 78,000 144,000 294,000 $ 74,000 15,500 50,000 139,500 51,000 1,924,500 76,500 750,100 Prepared a budgeted income statement and balance sheet. $ 826,600 38,000 $ 788,600 Required: Prepared a budgeted income statement and balance sheet. Complete this question by entering your answers in the tabs below. Budgeted Budgeted Inc Stmt Balance Prepared a budgeted income statement. (Round "Cost per unit" to 2 decimal places. Do not round any other intermediate calculations.) PANTHER CORPORATION Budgeted Income Statement For the Year Ended December 31, Year 2 Revenue: Sales revenue Other income Total Revenue 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) 0 $ 0 Total expenses Operating profit (loss) $ < Budgeted Inc Stmt Budgeted Balance Sheet > Required: Prepared a budgeted income statement and balance sheet. Complete this question by entering your answers in the tabs below. Budgeted Budgeted Inc Stmt Balance Prepared a budgeted balance sheet. (Round "Cost per unit" to 2 decimal places. Do not round any other intermediate calculations.) PANTHER CORPORATION Budgeted Balance Sheet Budgeted December 31, Year 2 Current Assets Total current assets $ 0 Total assets Current liabilities $ 0 Total current liabilities $ 0 Shareholders' equity Total shareholders' equity Total liabilities and shareholders' 0 $ 0 equity < Budgeted Inc Stmt Budgeted Balance Sheet >