Swifty Industries' balance sheet at December 31, 2021, is presented below. SWIFTY INDUSTRIES Balance Sheet December 31, 2021 Assets Current Assets Cash $8,100 Accounts receivable 79,380 Finished goods inventory (1,620 units) 25,920 Total current assets 113,400 Property, Plant, and Equipment Equipment $43,200 Less: Accumulated depreciation 10,800 32,400 Total assets $145,800 Liabilities and Stockholders' Equity Liabilities Notes payable $27,000 Accounts payable 48,600 Total liabilities 75,600 Stockholders' Equity Common stock $43,200 Retained earnings 27,000 Total stockholders' equity 70,200 Total liabilities and stockholders' equity $145,800 Budgeted data for the year 2022 include the following. 2022 Quarter 4 Total Sales budget (9,200 units at $32) $88,320 $294,400 Direct materials used 18,360 67,500 Direct labor 13,500 54,972 Manufacturing overhead applied 10,800 52,488 Selling and administrative expenses 19,440 81,000 To meet sales requirements and to have 2,700 units of finished goods on hand at December 31, 2022, the production budget shows 9,720 required units of output. The total unit cost of production is expected to be $18. Swifty uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,780 for the year. Income taxes are expected to be 20% of income before income taxes. In 2022, the company expects to declare and pay an $8,640 cash dividend. The company's cash budget shows an expected cash balance of $26,560 at December 31, 2022. All sales and purchases are on account. It is expected that 60% 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 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 2022, the company expects to purchase additional equipment costing $9,720. $4,460 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Swifty expects to pay $8,640 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $3,780, above). Accounts payable at December 31, 2022, includes amounts due suppliers (see above) plus other accounts payable relating to manufacturing overhead of $7,776. Unpaid income taxes at December 31 will be $5,400. Prepare a budgeted statement of cost of goods sold. SWIFTY INDUSTRIES Budgeted Cost of Goods Sold For the Year Ending December 31, 2022 Finished Goods Inventory, 1/1/22 25920 Cost of Goods Manufactured Direct Materials Used $ 67500 Direct Labor 54972 Manufacturing Overhead Applied 52488 174960 Cost of Goods Available For Sale 200880 Finished Goods Inventory, 12/31/22 48600 i Cost of Goods Sold $ 152280 Prepare a budgeted multiple-step income statement for 2022. SWIFTY INDUSTRIES Budgeted Income Statement For the Year Ending December 31, 2022 Sales Revenue $ 294,400 Cost of Goods Sold 152,280 i Gross Profit 142,120 Selling and Administrative Expenses 81,000 i Income from Operations 61,120 Interest Expense 3,780 i Income before Income Taxes 57,340 Income Tax Expense 11,468 i Net Income /(Loss) $ 45,872 Prepare a retained earnings statement for 2022. (List items that increase retained earnings first.) SWIFTY INDUSTRIES Budgeted Retained Earnings Statement For the Year Ending December 31, 2022 Retained Earnings, 1/1/22 $ 27,000 Add V: Net Income/ (Loss) 45,872 72,872 Less : Dividends 8,640 i Retained Earnings, 12/31/22 $ 64,232 Prepare a budgeted classified balance sheet at December 31, 2022. (List Current Assets in order of liquidity.) SWIFTY INDUSTRIES Budgeted Balance Sheet Assets