Problem 22-06A a-d (Video) (Part Level Submission) Sunland Industries' balance sheet at December 31, 2019, is presented below. SUNLAND INDUSTRIES Balance Sheet December 31, 2019 Assets Current Assets $7,500 73,500 25,340 106,340 29,570 $135,910 Cash Accounts receivable Finished goods inventory (1,500 units) Total current assets Property, Plant, and Equipment Equipment $40,380 Less. Accumulated depreciation 10,810 Total assets Liabilities and Stockholders' Equity Liabilities Notes payable Accounts payable Total liabilities Stockholders' Equity Common stock $35.600 Retained earnings 26.600 Total stockholders equity $26,360 47.350 73,710 62,200 to search Bi hp CALCULATOR PUTER VERSION BACK Liabilities and Stockholders' Equity Lubilities Notes payable Accounts payable Totalli StockholdersEquity Common stock $35,600 Pet Avd wa ung 26.000 Totalvolders outy $26,360 47,350 73,710 Total liabilities and stockholders couty 62,200 $135,910 Budgeted data for the year 2020 include the following 2020 Quarter 4 Total Sales budget (6,000 units at $32) 576,800 $256.000 Direct materials used 14,250 62.500 Direct labor 12.500 50,900 Manufacturing overhead applied 10.000 45,600 Selling and administrative expenses 17.690 75,000 To meet sales requirements and to have 2.500 units of finished goods on hand at December 31, 2020, the production budget shows 9.000 required units of output. The total unit cost of production is expected to be $18. Sunland use the first in, first-out (FIFO) inventory costing method. Interest expense is expected to be $5.500 for the rear Income taxes expected to be 40% of income before income taxes. In 2020, the company expects to dedare and pavan 8.30 cash dividend. The company's cash budget shows an expected cash balance of 15,680 t December 31, 2020. All sales and purchases are on account. It is expected that 60% of Guated sales are to search o 40 121/2000 CALCULATOR PIEVEN CRACK U CHA USONY W per expected to be 40% of income before income taxes. In 2020, the company aspects to declare and pay an $8.530 cash dividend. The company's cash budget shows an expected cash balance of $5,880 at December 31, 2020, All sales and purchases are on account. It is expected that of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter Direct materials purchased from suppliers are paid 50in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2020, the company expects to purchase additional equipment conting $11,270. $11,169 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses Sunland expects to pay $9.590 on the outstanding notes payable balance plus all interest due and able to December 31 (induded in interest expense $3.500 above). Accounts payable at December 31, 2020, Indudes amounts de suppliers (see above) plus other accounts payable relating to manufacturing overhead of 17.450 Unpaid income taxes at December 31 will be $5,160. (a) your answer is partially correct. Try again. Prepare a budgeted statement of cost of goods sold. SUNLAND INDUSTRIES Budgeted Cost of Goods Sold For the Year Ending December 31, 2020 Filed Gods. 1/1/20 2685 Cost of bodiste 52500 5000 50-450 DAM Direct Materials Used 62500 > Direct Labor 50900 x Manufacturing Overhead Applied 50480 163880 Is X Cost of Goods Atable For Sale 190730 Finished Good intenton 20 Y 45000 x Cast of Goods Sold 145730 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT (b) Your answer is partially correct. Try again e to search O (b) Your answer is partially correct. Try again. Prepare a budgeted multiple-step income statement for 2020. SUNLAND INDUSTRIES Budgeted Income Statement For the Year Ending December 31, 2020 Sales Revenue 256,000 Cost of Goods Sold 142,340 Gross Profit 113650 Selling and Administrative Expenses 75,000 IST Income from onerations 38660 3.500 35160 ES e to search O IN hp (c) Your answer is correct. Prepare a retained earnings statement for 2020. (List items that increase retained earnings first.) SUNLAND INDUSTRIES Budgeted Retained Earnings Statement For the Year Ending December 31, 2020 Retained Earnings, 1/1/20 26,600 Add Net Income (Loss 21,096 47696 Dividends 8,530 Retained Eacings 122 39166 SHOW ANSWER LINK TO TEXT LINK TO TEXT VIDEOL e to search O hp (d) Prepare a budgeted classified balance sheet at December 31, 2020. (List Current Assets in order of liqui SUNLAND INDUSTRIES Budgeted Balance Sheet December 31, 2020 Assets Current Assets Cash 7.500 $ Accounts Receivable 73,500