*Exercise 5-30 Bill Thomas, Marigold & Hill'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 of December 31 is as follows: Cash Accounts Receivable (net) Finished Goods Inventory Raw Materials Inventory Property, Plant & Equipment Accumulated Depreciation Total Assets Accounts Payable Income Tax Payable Common Stock Retained Earnings Total Liabilities & Owners Equity $ 24,000 23,400 19,600 3,024 120,000 (30,000) $160,024 $ 7,200 30,104 40,000 82,720 $160,024 Selected Estimates Budgeted revenue Selling and administrative expense Interest expense Cash Cost of Goods Sold Accounts receivable (net) Direct materials Finished goods Acounts payable Notes payable Quarter $564,000 106,560 1,352 12,310 401,348 54,600 2,224 23,606 13,280 16,400 Additional Information: Bates & Hill plans to declare and pay dividends totaling $19,600 in January. Bates & Hill plans to purchase and pay cash for a piece of land in February at a cost of $28,800. Bates & Hill plans to purchase equipment in March at a cost of $24,000. Depreciation for manufacturing overhead $12,000 per month and for selling and administrative $4,000 per month. The company expects a 12% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. Prepare Marigold & Hill's pro-forma income statement for the first quarter. (Round answers to 0 decimal places, e.g. 5,275.) Marigold & Hill Income Statement First Quarter Prepare Marigold & Hill's pro-forma balance sheet as of March 31. Marigold & Hill Balance Sheet March 31 |