Anthony Walker, Sunland & Kevin'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: Cash $32,700 Finished Goods Inventory 22,500 Accounts Receivable (net) 98.000 Raw Materials Inventory 49,280 Property, Plant & Equipment 300.000 Accumulated Depreciation (75,000) Total Assets $427,480 Accounts Payable $ 18,000 Income Tax Payable 26,400 Common Stock 100,000 Retained Earnings 283,080 Total Liabilities & Owners Equity $427,480 Selected Estimates Quarter Budgeted revenue $1,781,900 Selling and administrative expense 425,700 Interest expense 370 Cash 50,380 Cost of Goods Sold 1,390,630 Accounts receivable (net) 174,720 Direct materials 29,160 Finished goods 104,720 Accounts payable 218,700 Notes payable 5,000 Additional Information: Sunland & Kevin plans to purchase and pay cash for a piece of land in February at a cost of $90,000. Sunland & Kevin 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. (a) Your answer is partially correct. the first quarter. (Enter negative using either a ve sign Prepare Sunlar & Kevin's pro-forma income statem preceding the number e.g. -45 or parentheses e.g. (45).) Sunland& Hill Income Statement First Quarter Sales Revenue $ 1781900 Cost of Goods Sold 1390630 i Gross Margin 391270 Selling & Administrative Expense 425700 i Non-Operating Expenses (34430) Interest Expense (370) i Income Before Taxes (34800) Income Tax Expense 10440 Net Income /(Loss) $ (24360)