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: Cash PANTHER CORPORATION Expected Account Balances for December 31, Year 2 Accounts receivable Inventory (January 1, Year 2) Plant and equipment Accounts payable Accumulated depreciation Notes payable (due within one year) Accrued payables Common stock Retained earnings Sales revenue Other income Manufacturing costs Materials $ 5,900 331,000 330,000 575,000 $ 175,000 191,000 211,000 104,000 390,000 785,400 2,510,000 58,000 955,000 Direct labor 980,000 Variable overhead 627,000 Depreciation 31,000 Other fixed overhead. 42,000 Marketing Commissions 102,000 Salaries 75,000 Promotion and advertising 202,000 Administrative Salaries 75,000 Travel 15,500 Office costs 47,000 Income taxes Dividends 31,000 $4,424,400 $4,424,400