Kenneth Clark, Concord & Stevens 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 companys balance sheet as of December 31 is as follows:

Cash		$ 32,000
Finished Goods Inventory		22,500
Accounts Receivable (net)		98,500
Raw Materials Inventory		49,280
Property, Plant & Equipment		300,000
Accumulated Depreciation		(75,000)
Total Assets		$427,280
Accounts Payable		$ 16,000
Income Tax Payable		26,400
Common Stock		100,000
Retained Earnings		284,880
Total Liabilities & Owners Equity		$427,280

Selected Estimates		Quarter
Budgeted revenue		$1,778,100
Selling and administrative expense		427,700
Interest expense		370
Cash		50,380
Cost of Goods Sold		1,385,630
Accounts receivable (net)		174,720
Direct materials		29,160
Finished goods		104,720
Accounts payable		218,700
Notes payable		4,000

Additional Information:

Concord & Steven plans to purchase and pay cash for a piece of land in February at a cost of $90,000.

Concord & Steven 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)

Partially correct answer iconYour answer is partially correct.

Prepare Concord & Stevens pro-forma income statement for the first quarter. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Concord& Hill Income Statement First Quarter
select an income statemet item Income Tax ExpenseCost of Goods SoldInterest ExpenseIncome Before TaxesSelling & Administrative ExpenseSales Revenue		$enter a dollar amount
select an income statemet item Selling & Administrative ExpenseSales RevenueIncome Tax ExpenseInterest ExpenseIncome Before TaxesCost of Goods Sold		enter a dollar amount
select a summarizing line for the first part Non-Operating Income / (Loss)Net Income / (Loss)Operating Income / (Loss)Non-Operating ExpensesGross Margin		enter a total amount for the first part
select an income statemet item Income Before TaxesIncome Tax ExpenseSales RevenueInterest ExpenseSelling & Administrative ExpenseCost of Goods Sold		enter a dollar amount
select a summarizing line for the second part Net Income / (Loss)Gross MarginNon-Operating ExpensesNon-Operating Income / (Loss)Operating Income / (Loss)		enter a total amount for the second part
select an income statemet item Cost of Goods SoldInterest ExpenseSales RevenueIncome Before TaxesIncome Tax ExpenseSelling & Administrative Expense		enter a dollar amount
select a summarizing line for the third part Selling & Administrative ExpenseCost of Goods SoldInterest ExpenseIncome Tax ExpenseSales RevenueIncome Before Taxes		enter a total amount for the third part
select an income statemet item Cost of Goods SoldSales RevenueIncome Tax ExpenseIncome Before TaxesInterest ExpenseSelling & Administrative Expense		enter a dollar amount
select a closing name for this statement Net Income / (Loss)Non-Operating Income / (Loss)Non-Operating ExpensesGross MarginOperating Income / (Loss)		$enter a total net income or loss amount