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 Accounts Payable Income Tax Payable $427,480 $ 18,000 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