Problem 13-62 (Algo) Comprehensive Budget Plan (LO 13-4, 5, 6) 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: Cash PANTHER CORPORATION Expected Account Balances for December 31, Year 2 Accounts receivable Inventory (January 1, Year 2) Plant and equipment Accumulated depreciation Accounts payable Notes payable (due within one year) Accrued payables Common stock Retained earnings Sales revenue Other income Manufacturing costs Materials 6,300 335,000 300,000 595,000 $ 179,000 195,000 215,000 108,000 430,000 714,800 2,550,000 66,000 924,000 989,000 Variable overhead 646,000 Depreciation 35,000 Other fixed overhead 46,000 Marketing Commissions 110,000 Salaries 79,000 Promotion and advertising 210,000 Administrative Salaries 79,000 Travel 17,500 Office costs 51,000 Income taxes Dividends 35,000 $4,457,800 $4,457,800 Direct labor