5A.22 (LO 5) Preparing pro-forma financial statements Bill Thomas, Bates & Hill's controller, has received all the budgets prepared by the various operating units (see Exercises 5A.8, 9, 11, 13, 14, 16, 18, and 29) 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: Cash $ 52,400 Accounts Receivable (net) 98,200 Inventory 49,280 Property, Plant, & Equipment 300,000 Accumulated Depreciation (75,000) Total Assets $424,880 Accounts Payable $118,000 Income Tax Payable 110,000 Common Stock 50,000 Retained Earnings 146,880 Total Liabilities & Owners' Equity $424,880 The company expects a 30% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. Required a. Prepare Bates & Hill's pro-forma income statement for the first quarter. b. Prepare Bates & Hill's pro-forma balance sheet as of March 31. 5A.22 (LO 5) Preparing pro-forma financial statements Bill Thomas, Bates & Hill's controller, has received all the budgets prepared by the various operating units (see Exercises 5A.8, 9, 11, 13, 14, 16, 18, and 29) 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: Cash $ 52,400 Accounts Receivable (net) 98,200 Inventory 49,280 Property, Plant, & Equipment 300,000 Accumulated Depreciation (75,000) Total Assets $424,880 Accounts Payable $118,000 Income Tax Payable 110,000 Common Stock 50,000 Retained Earnings 146,880 Total Liabilities & Owners' Equity $424,880 The company expects a 30% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. Required a. Prepare Bates & Hill's pro-forma income statement for the first quarter. b. Prepare Bates & Hill's pro-forma balance sheet as of March 31