Ponther 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 controlier asked Janet Nomura, a summer. accounting intern, to prepare B droft forecost for the year and to analyze the differences from last yoar's results. She based the forecast on actual resulis obtained in the first quarter plus the expected costs of production to be completed in the remoinder of the year She worked with various department heads tproduction, sales, and so on) to get the necessary information. The results of these efforts follow: Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 405.000 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. Required: Prepared a budgeted income statement and balance sheet. PANIHER CORPORAIION Budgeted Balance Sheet Budgeted December 31, Year 2 Current Assets Total current assets Budgeted Inc Stmt For the Year Ended December 31, Year 2 Revenue: \begin{tabular}{|c|} \hline Sales revenue \\ \hline Other income \\ \hline Total Revenue \\ \hline \end{tabular} Expenses: Cost of goods manufactured & sold: Budgeted Balance