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 to get the necessary information:

department heads (production, sales, and so on) to get the necessary inform of these efforts follow The results PANTHER CORPORATION Expected Account Balances for December 31, Year 2 320,000 192,000 520,000 Accounts receivable Plant and equipment.. Accumulated depreciation . . . . Accounts payable Notes payable (due within one year) Accrued payables. .. Common stock . . .. Retained earnings . . . . $ 164,000 180,000 200,000 93,000 280,000 432,800 2,400,000 36,000 Manufacturing costs Materials Direct labor Variable overhead 852,000 872,000 520,000 20,000 31,000 Other fixed overhead. .. Marketing Commissions. .. Salaries. Promotion and advertising 80,000 64,000 180,000 Administrative 64,000 10,000 36,000 Salaries. . . . Office costs Income taxes. Dividends 20,000 $3,785,800 $3,785,800