Problem 10-42A (Part Level Submission) Kurian Industries' balance sheet at December 31, 2015, is presented below. (a1) KURIAN INDUSTRIES Prepare a budgeted income statement for 2016. In preparing the income statement, you will need to calculate Balance Sheet the cost of goods manufactured (materials + labour + overhead) and finished goods inventory (December 31, December 31, 2015 2016). (Round answers to 0 decimal places, e.q. 125.) Assets Current assets KURIAN INDUSTRIES Cash $7,540 Budgeted Income Statement For the Year Ending December 31, 2016 Accounts receivable 82,400 Finished goods inventory (2,400 units) 30,400 Total current assets 120,340 Equipment $40,000 Less: Accumulated depreciation 11,000 29,000 Total assets $149,340 Liabilities and Shareholders' Equity Liabilities Notes payable $25,500 E Accounts payable 44,500 Total liabilities 70,000 Shareholders' equity Common stock $49,500 Retained earnings 29,840 Total shareholders' equity 79,340 Total liabilities and shareholders' equity $149,340 Budgeted data for the year 2016 include the following. 24 of 2016 Year 2016 Total Sales budget (8,200 units at $39) $95,940 $319,800 Direct materials used 17,100 70,100 Direct labor 12,800 56,200 Manufacturing overhead applied 10,600 47,700 Selling and administrative expenses 17,900 75,500 To meet sales requirements and to have 2,900 units of finished goods on hand at December 31, 2016, the production budget shows 8,700 required units of output. The total unit cost of production is expected to be $20. Kurian Industries uses the first-in, first-out (FIFO) inventory costing method. Selling and administrative expenses include $4,600 for depreciation on equipment. The company expects interest expense to be $3,700 for the year and income taxes to be 20% of income before income taxes. All sales and purchases are on account. The company expects to collect 60% of the quarterly sales in cash within the quarter and the remainder in the following quarter. It pays direct materials purchased from suppliers 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2016, the company expects to purchase additional equipment costing $18,000. It expects to pay $8,000 on notes payable plus all interest due and payable to December 31 (included in interest expense $3,700, above). Accounts payable at December 31, 2016, includes amounts due to suppliers (see above) plus other accounts payable of $6,100. In 2016, the company expects to declare and pay a $5,400 cash dividend. Unpaid income taxes at December 31 will be $5,652. The company's cash budget shows an expected cash balance of $48,326 at December 31, 2016