Robert Williams, Marigold & Michael'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		$ 32,300
Finished Goods Inventory		22,500
Accounts Receivable (net)		98,900
Raw Materials Inventory		49,280
Property, Plant & Equipment		300,000
Accumulated Depreciation		(75,000)
Total Assets		$427,980
Accounts Payable		$ 18,000
Income Tax Payable		26,400
Common Stock		100,000
Retained Earnings		283,580
Total Liabilities & Owners Equity		$427,980

Selected Estimates		Quarter
Budgeted revenue		$1,780,400
Selling and administrative expense		425,700
Interest expense		370
Cash		50,380
Cost of Goods Sold		1,389,630
Accounts receivable (net)		174,720
Direct materials		29,160
Finished goods		104,720
Accounts payable		218,700
Notes payable		5,000

Additional Information:

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

Marigold & Michael 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.

Marigold& Hill Income Statement First Quarter Sales Revenue to 1780400 Cost of Goods Sold 1389630 Gross Margin 390770 Selling & Administrative Expense v 425700 Operating Income / (Loss) -34930 Interest Expense 370 Income Before Taxes -35300 Income Tax Expense V Net Income / (Loss) V -35300Prepare Marigold & Michael's pro-forma balance sheet as of March 31. Marigold& Hill Balance Sheet March 31 Cash tA Accounts Receivable Raw Materials Inventory Finished Goods Inventory Property, Plant & Equipment V Accumulated Depreciation Total Assets Accounts Payable V Common Stock Retained Earnings Note Payable Total Liabilities and Equities V