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 Expected Account Balances for December 31, Year 2
Cash	$	5,200
Accounts receivable		324,000
Inventory (January 1, Year 2)		190,000
Plant and equipment		540,000
Accumulated depreciation				$	168,000
Accounts payable					184,000
Notes payable (due within one year)					204,000
Accrued payables					97,000
Common stock					320,000
Retained earnings					587,200
Sales revenue					2,440,000
Other income					44,000
Manufacturing costs
Materials		912,000
Direct labor		971,000
Variable overhead		555,000
Depreciation		24,000
Other fixed overhead		35,000
Marketing
Commissions		88,000
Salaries		68,000
Promotion and advertising		188,000
Administrative
Salaries		68,000
Travel		12,000
Office costs		40,000
Income taxes
Dividends		24,000
	$	4,044,200		$	4,044,200

Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 454,000 units, and planned sales volume is 404,000 units. Sales and production volume was 304,000 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:

PANTHER CORPORATION Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1
Revenues
Sales revenue				$	1,900,000
Other income					68,000		$	1,968,000
Expenses
Cost of goods sold
Materials	$	544,000
Direct labor		596,000
Variable overhead		328,000
Fixed overhead		52,000
	$	1,520,000
Beginning inventory		190,000
	$	1,710,000
Ending inventory		190,000		$	1,520,000
Selling
Salaries	$	58,000
Commissions		64,000
Promotion and advertising		130,000			252,000
General and administrative
Salaries	$	60,000
Travel		7,500
Office costs		36,000			103,500
Income taxes					37,000			1,912,500
Operating profit								55,500
Beginning retained earnings								555,700
Subtotal							$	611,200
Less dividends								24,000
Ending retained earnings							$	587,200

Required:

Prepared a budgeted income statement and balance sheet.

Complete this question by entering your answers in the tabs below. Budgeted Inc Stmt Budgeted Balance Sheet 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 $ 0 Expenses: Cost of goods manufactured & sold: Materials Direct labor Variable overhead Fixed overhead Beginning inventory 0 Ending inventory Marketing: Salaries Commissions Promotions and advertising Administrative: Salaries Travel Office costs Income taxes (credit) Total expenses Operating profit (loss) $ 0 Budgeted Inc Stmt Budgeted Balance Sheet > Budgeted Inc Stmt Budgeted Balance Sheet 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 Cash Accounts receivable Inventory Income tax receivable Total current assets $ 0 Plant and equipment $ 0 Total assets Current liabilities Accounts payable Notes payable Accrued payable $ 0 Total current liabilities Shareholders' equity Common stock Retained earnings 0 Total shareholders' equity Total liabilities and shareholders' equity $ 0