Problem 23-6A (Part Level Submission) Krause Industries' balance sheet at December 31, 2016, is presented below. KRAUSE INDUSTRIES Balance Sheet December 31, 2016 Assets Ourrent Assets $7,500 Accounts receivable Finished gcods inventory 24,530 (1,500 units) Total current assets 105,530 Property, Plant, and Equipment $41,000 10,960 30,040 $135,570 Total assets Liabilities and Stockholders' Equity Liabilities Notes payable Accounts payable $27,350 Total iabilities 72,520 Stockholders' Equity Common stock Retained eanings $36,960 Total stockholders' equity stockholders' equity Budgeted data for the year 2017 include the following. 2017 Quarter 4 Total Sales budget (8,000 units at $32) $76,800 $256,000 Direct materials used Direct labor 12,540 62,500 12,500 50,900 10,000 50,940 15,120 75,000 Manufacturing overhead applied Selling and administrative expenses To meet sales requirements and to have 2,500 units of finished goods on hand at December 31, 2017, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $18. Krause uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 40% of income before income taxes. In 2017, the company expects to dedare and pay an $8,510 cash dividend The company's cash budget shows an expected cash balance of $5,880 at December 31, 2017All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder $ collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred ?nd the emainder in the following quarter Purchases in the fourth quarter were the same as the materials used. In 2017, the company expects to purchase additional equipment costing $9,010. $4,632 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Krause expects to pay $8,180 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense 3,500, above). Accounts payable at December 31, 2017, includes amounts due suppliers (see above) plus other accounts payable of $9,030, unpaid income taxes at December 31 will be $6,830