To meet sales requirements and to have 3,250 units of finished goods on hand at December 31,2025 , the production budget shows 11,700 required units of output. The total unit cost of production is expected to be $18. Sheffield uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $4,550 for the year. Income taxes are expected to be 20% of income before income taxes. In 2025, the company expects to declare and pay an $10,400 cash dividend. The company's cash budget shows an expected cash balance of $37,794 at December 31, 2025. 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 2025, the company expects to purchase additional equipment costing $11,700. A total of $4,100 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Sheffield expects to pay $10,400 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $4,550, above). Accounts payable at December 31, 2025, includes amounts due suppliers (see above) plus other accounts payable relating to manufacturing overhead of $9,360. Unpaid income taxes at December 31 will be $6,500. Budgeted Balance Sheet For the Year Ending December 31, 2025 Assets $ $ $ Liabilities and Stockholders' Equity Budgeted data for the year 2025 include the following. To meet sales requirements and to have 3,250 units of finished goods on hand at December 31,2025 , the production budget 11,700 required units of output. The total unit cost of production is expected to be $18. Sheffield uses the first-in, first-out inventory costing method. Interest expense is expected to be $4,550 for the year. Income taxes are expected to be 20% of in before income taxes. In 2025 , the company expects to declare and pay an $10,400 cash dividend. Question 1 of 2 22.6/35 Liabilities and Stockholders' Equity $ $ eTextbook and Media Current Assets Cash $9,750 Accounts receivable 95,550 Finished goods inventory (1,950 units) 31,200 Total current assets 136,500 Property, Plant, and Equipment Equipment \begin{tabular}{rr} $52,000 & \\ 13,000 & 39,000 \\ $175,500 \end{tabular} Total assets Liabilities and Stockholders' Equity Liabilities Notes payable $32,500 Accounts payable 58,500 Total liabilities 91,000 Stockholders' Equity Common stock $52,000 32.500