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	$	5,000
Accounts receivable		322,000
Inventory (January 1, Year 2)		180,000
Plant and equipment		530,000
Accumulated depreciation				$	166,000
Accounts payable					182,000
Notes payable (due within one year)					202,000
Accrued payables					95,000
Common stock					300,000
Retained earnings					421,000
Sales revenue					2,420,000
Other income					40,000
Manufacturing costs
Materials		820,000
Direct labor		850,000
Variable overhead		501,000
Depreciation		22,000
Other fixed overhead		33,000
Marketing
Commissions		98,000
Salaries		66,000
Promotion and advertising		262,000
Administrative
Salaries		66,000
Travel		11,000
Office costs		38,000
Income taxes
Dividends		22,000
	$	3,826,000		$	3,826,000

Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 420,000 units, and planned sales volume is 370,000 units. Sales and production volume was 270,000 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				$	1,730,000
Other income					55,000		$	1,785,000
Expenses
Cost of goods sold
Materials	$	470,000
Direct labor		500,000
Variable overhead		330,000
Fixed overhead		50,000
	$	1,350,000
Beginning inventory		180,000
	$	1,530,000
Ending inventory		180,000		$	1,350,000
Selling
Salaries	$	56,000
Commissions		62,000
Promotion and advertising		128,000			246,000
General and administrative
Salaries	$	58,000
Travel		9,500
Office costs		34,000			101,500
Income taxes					35,000			1,732,500
Operating profit								52,500
Beginning retained earnings								390,500
Subtotal							$	443,000
Less dividends								22,000
Ending retained earnings							$	421,000

Required:

Prepared a budgeted income statement and balance sheet. (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
Matenals
Direct labor
Vanable overhead
F1xed 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

PANTHER CORPORATION

Budgeted Balance Sheet

Budgeted December 31, Year 2

Current Assets

Total current assets $ 0

0

Total assets $ 0

Current liabilities

Total current liabilities $ 0

Shareholders' equity

Total shareholders' equity 0

Total liabilities and shareholders' equity $ 0

This is the only information provided by the textbook.