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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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George Robinson, Marigold & Kenneth’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:
Additional Information:
The company expects a 30% income tax rate, and all quarterly taxes are paid in the first month of the following quarter.
Cash | $ 32,200 | ||
Finished Goods Inventory | 22,500 | ||
98,500 | |||
Raw Materials Inventory | 49,280 | ||
Property, Plant & Equipment | 300,000 | ||
(75,000) | |||
Total Assets | $427,480 | ||
Accounts Payable | $ 18,000 | ||
Income Tax Payable | 26,400 | ||
Common Stock | 100,000 | ||
283,080 | |||
Total Liabilities & Owners Equity | $427,480 |
Selected Estimates | Quarter | ||
---|---|---|---|
Budgeted revenue
|
$1,779,900 | ||
Selling and administrative expense
|
428,700 | ||
Interest expense
|
370 | ||
Cash
|
50,380 | ||
Cost of Goods Sold
|
1,385,630 | ||
Accounts receivable (net)
|
174,720 | ||
Direct materials
|
29,160 | ||
Finished goods
|
104,720 | ||
Accounts payable
|
218,700 | ||
Notes payable
|
5,000 |
Additional Information:
Marigold & Kenneth plans to purchase and pay cash for a piece of land in February at a cost of $90,000. |
Marigold & Kenneth plans to purchase equipment in March at a cost of $30,000. |
Depreciation for manufacturing |
The company expects a 30% income tax rate, and all quarterly taxes are paid in the first month of the following quarter.
(a)
Prepare Marigold & Kenneth’s pro-forma income statement for the first quarter. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Marigold& Hill
Income Statement First Quarter |
||
---|---|---|
select an income statemet item
|
$enter a dollar amount | |
select an income statemet item
|
enter a dollar amount | |
select a summarizing line for the first part
|
enter a total amount for the first part | |
select an income statemet item
|
enter a dollar amount | |
select a summarizing line for the second part
|
enter a total amount for the second part | |
select an income statemet item
|
enter a dollar amount | |
select a summarizing line for the third part
|
enter a total amount for the third part | |
select an income statemet item
|
enter a dollar amount | |
select a closing name for this statement
|
$enter a total net income or loss amount |
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