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	$	6,100
Accounts receivable		333,000
Inventory (January 1, Year 2)		318,000
Plant and equipment		585,000
Accumulated depreciation				$	177,000
Accounts payable					193,000
Notes payable (due within one year)					213,000
Accrued payables					106,000
Common stock					410,000
Retained earnings					771,600
Sales revenue					2,530,000
Other income					62,000
Manufacturing costs
Materials		963,000
Direct labor		987,000
Variable overhead		629,000
Depreciation		33,000
Other fixed overhead		44,000
Marketing
Commissions		106,000
Salaries		77,000
Promotion and advertising		206,000
Administrative
Salaries		77,000
Travel		16,500
Office costs		49,000
Income taxes
Dividends		33,000
	$	4,462,600		$	4,462,600

Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 415,000 units, and planned sales volume is 365,000 units. Sales and production volume was 265,000 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				$	2,030,000
Other income					82,000		$	2,112,000
Expenses
Cost of goods sold
Materials	$	610,000
Direct labor		622,000
Variable overhead		297,000
Fixed overhead		61,000
	$	1,590,000
Beginning inventory		318,000
	$	1,908,000
Ending inventory		318,000		$	1,590,000
Selling
Salaries	$	67,000
Commissions		73,000
Promotion and advertising		139,000			279,000
General and administrative
Salaries	$	69,000
Travel		14,000
Office costs		45,000			128,000
Income taxes					46,000			2,043,000
Operating profit								69,000
Beginning retained earnings								735,600
Subtotal							$	804,600
Less dividends								33,000
Ending retained earnings							$	771,600

• 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