5 !! View Policies Current Attempt in Progress Thomas Taylor, Vaughn & Chris'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: $32,000 22.500 98,300 Cash Finished Goods Inventory Accounts Receivable (net) Raw Materials Inventory Property, Plant & Equipment Accumulated Depreciation 49,280 300,000 (75,000) Total Assets $427,080 $ 16,000 Accounts Payable Income Tax Payable Common Stock 26,400 100,000 Retained Earnings 284,680 Total Liabilities & Owners Equity $427,080 Selected Estimates Quarter $1.779,300 Selected Estimates Quarter $1.779,300 Budgeted revenue Selling and administrative expense Interest expense 425,700 370 Cash 50,380 1,387,630 174.720 29,160 Cost of Goods Sold Accounts receivable (net) Direct materials Finished goods Accounts payable Notes payable 104,720 218,700 3,000 Additional Information: Vaughn & Chris plans to purchase and pay cash for a piece of land in February at a cost of $90,000 Vaughn & Chris plans to purchase equipment in March at a cost of $30,000 Depreciation for manufacturing overhead $42,000 per quarter and for selling and administrative $30,000 per month, The company expects a 30% income tax rate, and all quarterly taxes are paid in the first month of the following quarter Prepare Vaughn & Chris's pro-forma income statement for the first quarter. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses es. (45).) Vaughn& Hill Income Statement First Quarter $