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Stuck with computing accumulated depreciation John Johnson, Swifty & Robert's controller, has received all the budgets prepared by the various operating units and is ready
Stuck with computing accumulated depreciation
John Johnson, Swifty & Robert's controller, has received all the budgets prepared by the various operating units and is ready to compile the pro-forma financial statements for the first quarter. The company's balance sheet as of December 31 is as follows: Cash Finished Goods Inventory Accounts Receivable (net) Raw Materials Inventory Property, Plant & Equipment Accumulated Depreciation Total Assets Accounts Payable Income Tax Payable Common Stock Retained Earnings Total Liabilities & Owners Equity $32,100 22,500 98,500 49,280 300,000 (75,000) $427,380 $ 15,000 26,400 100,000 285.980 $427,380 Selected Estimates Budgeted revenue Selling and administrative expense Interest expense Cash Cost of Goods Sold Accounts receivable (net) Direct materials Finished goods Accounts payable Notes payable Quarter $1,779,000 428,700 370 50,380 1,386,630 174,720 29,160 104,720 218,700 4.000 Additional Information: Swifty & Robert plans to purchase and pay cash for a piece of land in February at a cost of $90,000. Swifty & Robert plans to purchase equipment in March at a cost of $30,000. Depreciation for manufacturing overhead $42,000 per quarter and for selling and administrative $30,000 per month. The company expects a 30% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. Your answer is correct. Prepare Swifty & Robert's pro-forma income statement for the first quarter. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Swifty& Hill Income Statement First Quarter $ Sales Revenue $ 1,779,000 Cost of Goods Sold 1.386,630 i Gross Margin 392,370 428,700 Selling & Administrative Expense Operating Income /(LOSS) (36,330) 370 i Interest Expense Income Before Taxes (36,700) Income Tax Expense 0 Net Income /(Loss) (36,700) Your answer is partially correct. Prepare Swifty & Robert's pro-forma balance sheet as of March 31. Swifty& Hill Balance Sheet March 31 Cash $ 50,380 Accounts Receivable 174,720 Finished Goods Inventory 104,720 Raw Materials Inventory > 29,160 Property. Plant & Equipment 420000 Accumulated Depreciation 147000 Total Assets 100000 Retained Earnings 249280 Total Liabilities and Equities 571980Step by Step Solution
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