The results of operations for the Macaron Bug Spray Manufacturing Company for the fourth quarter of 2017 were as follows (in thousands):

Question: i need to learn how to create a budgeted balance sheet as of the end of the first quarter of 2018.(List assets in order of liquidity.)

Sales of bug spray

$510,000Less variable cost of goods sold

285,600Contribution margin

224,400

Less fixed bug removal costs

$71,400

Less fixed selling and administrative expenses

30,600102,000Income before taxes

122,400Less taxes on income

48,960Net income

$73,440

Note:Macaron uses the variable costing method. Thus, only variable costs are included in the cost of goods sold. Fixed costs are charged to expense in the period incurred.

The company's balance sheet as of the end of the fourth quarter of 2017 was as follows (in thousands):

Assets:

Cash

$29,700Accounts receivable

255,000Total current assets

284,700

Fixtures and equipment

$135,000Less accumulated depreciation

75,00060,000Total assets

$344,700

Liabilities and owners' equity:

Accounts payable

$45,696Retained earnings

191,404Common stock

107,600Total liabilities and owners' equity$344,700

Additional information:

1.Sales and variable costs of sales are expected to increase by 7 percent in the next quarter.

2.All sales are on credit with 50 percent collected in the quarter of sale and 50 percent collected in the following quarter.3.Variable cost of sales consists of 40 percent materials, 42 percent direct labor, and 18 percent variable overhead. Materials are purchased on credit. 60 percent are paid for in the quarter of purchase, and the remaining amount is paid for in the quarter after purchase. There is no inventory. Also, direct labor and variable overhead costs are paid in the quarter the expenses are incurred.4.Fixed bug removal costs (other than $4,790 of depreciation expense) are expected to increase by 1.50 percent. Fixed bug removal costs requiring payment are paid in the quarter they are incurred.5.Fixed selling and administrative costs (other than $3,070 of depreciation expense) are expected to increase by 2 percent. Fixed selling and administrative costs requiring payment are paid in the quarter they are incurred.6.The tax rate is expected to be 40 percent. All taxes are paid in the quarter they are incurred.

7.No purchases of fixtures or equipment are expected in the first quarter of 2018.