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 $ 4,800 Accounts receivable 320,000 Inventory (January 1, Year 2) 192,000 Plant and equipment an 520,000 Accum Accumulated depreciation $ 164,000 Accounts payable 180,000 Notes payable (due within one year) 200,000 93,000 Common stock Accrued payables 280,000 432,800 Sales revenue Retained earnings 2,400,000 36,000 Manufacturi anura ring costs Materials nis 852,000 Direct labor 872,000 Variable overhead 520,000 Depreciation 20,000 Other fixed overhead 31,000 Marketing Commissions 80,000 64,000 Promotion and advertising 180,000 Administrative Salaries 64,000 Travel 10,000 ther income Salaries Administrative Salaries Travel Office costs Income taxes Dividends 64,000 10,000 36,000 20,000 $3,785,800 $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 costing and FIFO inventory system and is subject to a 40 percent income tax rate. The actual income statement for last year follows. $1,860,000 PANTHER CORPORATION Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1 Revenues Sales revenue $1,800,000 Other income 60,000 Expenses Cost of goods sold Materials 528,000 Direct labor 540,000 Variable overhead 324,000 Fixed overhead 48,000 $1,440,000 Beginning inventory 192,000 $1,632,000 Ending inventory 192,000 $1,440,000 Calling $ 54,000 60,000 126,000 240,000 $ Selling 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 56,000 8,000 32,000 96,000 33,600 1,809,600 50,400 402,400 $ 452,800 20,000 $ 432,800 equired: Prepared a budgeted income statement and balance sheet. Answer is not complete. Complete this question by entering your answers in the tabs below. Budgeted Inc Stmt Budgeted Balance Sheet Prepared a budgeted income statement. (Do not round intermediate calculations.) PANTHER CORPORATION Budgeted Income Statement For the Year Ended December 31, Year 2 Revenue: Sales revenue $ 2,400,000 36,000 Other income Total Revenue $ 2,436,000 Expenses: Cost of goods manufactured & sold: Materials Direct labor Variable overhead Fixed overhead 852,000 872,000 520,000 51,000 $ 2,295,000 192,000 2,487,000 255,000 X $ 2,232,000 X Beginning inventory Ending inventory Marketing: Salaries $ Commissions 80,000 X 64,000 X 180,000 $ Promotions and advertising 324,000 180,000 324,000 Promotions and advertising Administrative: Salaries $ Travel 64,000 10,000 36,000 Office costs Income taxes (credit) 110,000 2,666,000 X $ (230,000) X $ 2,206,000 Total expenses Operating profit (loss) PANTHER CORPORATION Budgeted Balance Sheet Budgeted December 31, Year 2 Current Assets Total current assets $ 0 Total assets $ 0 Current liabilities Total current liabilities $ 0 Shareholders' equity Total assets Current liabilities Total current liabilities o Shareholders' equity 0 Total shareholders' equity Total liabilities and shareholders' equity $ 0