10 Panther Corporation appeared to be experiencing a good year. Sales in the first quarter were one-third ahead of last year, and the sales department predicted that this rate would continue throughout the entire year. The controller asked Janet Nomura, a summer accounting intern, to prepare a draft forecast for the year and to analyze the differences from last year's results. She based the forecast on actual results obtained in the first quarter plus the expected costs of production to be completed in the remainder of the year. She worked with various department heads (production, sales, and so on) to get the necessary information. The results of these efforts follow: 2.27 points Skipped eBook Print References PANTHER CORPORATION Expected Account Balances for December 31, Year 2 Cash $ 6,400 Accounts receivable 336,000 Inventory (January 1, Year 2) 312,000 Plant and equipment 600,000 Accumulated depreciation $ 180, eee Accounts payable 196,000 Notes payable (due within one year) 216,000 Accrued payables 109, eee Common stock 440,000 Retained earnings 755,400 Sales revenue 2,560,000 Other income 68,000 Manufacturing costs Materials 950,000 Direct labor 999, ese Variable overhead 657,600 Depreciation 36,000 Other fixed overhead 47,00 Marketing Commissions 112,000 Salaries 80, eee Promotion and advertising 212,000 Administrative Salaries 80,000 Travel 18,000 Office costs 52,000 Income taxes Dividends 36,000 $ 4,524,400 $4,524,400 10 Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 400,000 units, and planned sales volume is 360,000 units. Sales and production volume was 260,000 units last year. The company uses a full- absorption costing and FIFO inventory system and is subject to a 40 percent income tax rate. The actual income statement for last year follows: 2.27 points Skipped eBook $2,106,000 Print . References PANTHER CORPORATION Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1 Revenues Sales revenue $ 2,010,000 Other income 96,000 Expenses Cost of goods sold Materials $ 550,000 Direct labor 600,000 Variable overhead 346,000 Fixed overhead 64,000 $ 1,560,000 Beginning inventory 312,000 $ 1,872,000 Ending inventory 312,000 $ 1,560,000 Selling Salaries 70,000 Commissions 76,000 Promotion and advertising 142,000 288,000 General and administrative Salaries $ 72,000 Travel 15,500 Office costs 48,000 135,500 Income taxes 49,000 Operating profit Beginning retained earnings Subtotal Less dividends Ending retained earnings 2,032,500 73,500 717,900 791,400 36,000 $ 755,400 10 Required: Prepared a budgeted income statement and balance sheet. (Round "Cost per unit" to 2 decimal places. Do not round any other intermediate calculations.) 2.27 points Skipped eBook PANTHER CORPORATION Budgeted Income Statement For the Year Ended December 31, Year 2 Revenue: Sales revenue Other income Total Revenue $ Expenses: Cost of goods manufactured & sold: Materials Direct labor Variable overhead Fixed overhead 0 Print References Beginning inventory 0 Ending inventory Marketing: Salaries Commissions Promotions and advertising Administrative: Salaries Travel Office costs Income taxes (credit) Total expenses Operating profit (loss) $ 0 10 Office costs Income taxes (credit) Total expenses Operating profit (loss) $ 0 2.27 points Skipped (Enter all the values as positive values.) eBook PANTHER CORPORATION Budgeted Balance Sheet Budgeted December 31, Year 2 Print Current Assets References Total current assets $ 0 0 Total assets $ 0 Current liabilities Total current liabilities $ 0 Shareholders' equity 0 Total shareholders' equity Total liabilities and shareholders' equity $ 0