James Smith, Crane & John'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 $32,000 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 $ 426,780 Accounts Payable $ 15,000 Income Tax Payable 26,400 Common Stock 100,000 Retained Earnings 285,380 Total Liabilities & Owners Equity $ 426,780 Selected Estimates Quarter Budgeted revenue $ 1,781,600 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 3,000 Additional Information: Crane & John plans to purchase and pay cash for a piece of land in February at a cost of $ 90,000. Crane & John 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. First Quarter Sales Revenue $ Cost of Goods Sold Gross Margin Selling & Administrative Expense Operating Income /(Loss) Interest Expense Income Before Taxes Income Tax Expense Net Income /(Loss) $