Exercise 5-30 (Part Level Submission) Bill Thomas, Bates &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: Accounts Receivable (net) Finished Goods Inventory Raw Materials Inventory Property, Plant & Equipment Accumulated Depreciation $43,200 42,120 35,290 5,443 216,000 (54,000) Total Assets Accounts Payable Income Tax Payable Common Stock Retained Earnings $289,043 12,960 54,187 72,000 149,896 $299,043 Total Liabilities & Owners Equity Quarter Budgeted revenue Selling and administrative expense Interest expense $1,015,200 191,808 2,434 22,158 722,426 98,280 4,003 Cost of Goods Sold Accounts receivable Direct materials Finished goods Acounts payable Notes payable 23,904 Additional Information: . Bates & Hill plans to declare and pay dividends totaling $35,280 in January. .Bates & Hill plans to purchase and pay cash for a piece of land in February at a cost of $51,840 . Bates & Hill plans to purchase equipment in March at a cost of $43,200. . Depreciation for manufacturing overhead $21,600 per month and for selling and administrative $7,200 per month. The company expects a 22% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. Additional Intormation: Bates & Hill plans to declare and pay dividends totaling $35,280 in January. Bates & Hill plans to purchase and pay cash for a piece of land in February at a cost of $51,840. Bates & Hill plans to purchase equipment in March at a cost of $43,200. Depreciation for manufacturing overhead $21,600 per month and for selling and administrative $7,200 per month. The company expects a 22% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. Prepare Bates & Hill's pro-forma income statement for the first quarter. Pro-forma Income Statement