Please check income statement and help prepare the balance sheet.

(LO 13-4, 5, 6) 13-62. Comprehensive Budget Plan

Panther Corporation appeared to be experiencing a good year. Sales in the first quarter were one-third ahead of last year, and the sales department predicted that this rate would continue throughout the entire year. The controller asked Janet Nomura, a summer accounting intern, to prepare a draft forecast for the year and to analyze the differences from last year's results. She based the forecast on actual results obtained in the first quarter plus the expected costs of production to be completed in the remainder of the year. She worked with various department heads (production, sales, and so on) to get the necessary information. The results of these efforts follow.

PANTHER CORPORATION Expected Account Balances for December 31, Year 2 S 4,800 Cash Accounts receivable 320,000 Inventory (January 1, year 2) 192,000 Plant and equipment 520,000 $ 164,000 Accumulated depreciation 180,000 Accounts payable 200,000 Notes payable (due within one year) 93,000 Accrued payables 280,000 Common stock 432,800 Retained earnings 2,400,000 Sales revenue 36,000 Other income Manufacturing costs Materials 852,000 Direct labor 872,000 Variable overhead 520,000 Depreciation 20,000 Other fixed overhead 31,000 Marketing Commissions 80,000 64,000 Salaries Promotion and advertising 180,000 Administrative 64,000 Salaries Travel 10,000 36,000 Office costs Income taxes 20,000 Dividends $3,785,800 $3,785,800PANTHER CORPORATION Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1 Revenues Sales revenue $1,800,000 Other income 60,000 $1,860,000 Expenses Cost of goods sold Materials $ 528,000 Direct labor 540,000 Variable overhead 324,000 Fixed overhead 48,000 $1,440,000 Beginning inventory 192,000 $1,632,000 Ending inventory 192,000 $1,440,000 Page 576 Selling Salaries $ 54,000 Commissions 60,000 Promotion and advertising 126,000 240,000 General and administrative Salaries $ 56,000 Travel 8,000 Office costs 32,000 96,000 Income taxes 33,600 1,809,600 Operating profit 50,400 402,400 Beginning retained earnings Subtotal $ 452,800 20,000 Less dividends Ending retained earnings $ 432,800A B C D E F G H REVENUES: BUDGETED INCOME STATEMENT Sales Revenue $ 1,800,000.00 $ 2,400,000.00 Other Income S 60,000.00 $ 1,860,000.00 S 36,000.00 $ 2,436,000.00 Opening Inventory Units 40000 EXPENSES: Units Produced 450000 C.O.G.S Total Available 490000 Materials $ 528,000.00 $ 852,000.00 Units Sold 400000 Direct Labor $ 540,000.00 $ 872,000.00 Closing Inventory Units 90000 Variable Overhead 324,000.00 S 520,000.00 Fixed Overhead $ 48,000.00 51,000.00 $ 1,440,000.00 $ 2,295,000.00 Beginning Inventory $ 192,000.00 $ 192,000.00 $ 1,632,000.00 $ 2,487,000.00 Ending Inventory $ 192,000.00 $1,440,000.00 $ 459,000.00 $ 2,028,000.00 SELLING: Salaries S 54,000.00 64,000.00 Comissions S 60,000.00 80,000.00 Promotion & Advertising S 126,000.00 S 180,000.00 $ 324,000.00 GENERAL & ADMINISTRATIVE: Salaries S 56,000.00 64,000.00 Travel 8,000.00 10,000.00 Office Costs 32,000.00 96,000.00 S 36,000.00 $ 110,000.00 Income Taxes S 33,600.00 $ (10,400.00) Total Expenses $ 1,809,600.00 $ 2,451,600.00 Operating Profit $ 50,400.00 $ (15,600.00)