Bill Thomas, Bates & Hill’s controller, has received

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: Cash $ 38,400 Accounts Receivable (net) 37,440 Finished Goods Inventory 31,360 Raw Materials Inventory 4,838 Property, Plant & Equipment 192,000 Accumulated Depreciation (48,000 )          Total Assets $256,038 Accounts Payable $ 11,520 Income Tax Payable 48,166 Common Stock 64,000 Retained Earnings 132,352          Total Liabilities & Owners Equity $256,038 Quarter Budgeted revenue $902,400 Selling and administrative expense 170,496 Interest expense 2,163 Cash 19,696 Cost of Goods Sold 642,157 Accounts receivable 87,360 Direct materials 3,558 Finished goods 37,770 Acounts payable 21,248 Notes payable 26,240 Additional Information: ● Bates & Hill plans to declare and pay dividends totaling $31,360 in January. ● Bates & Hill plans to purchase and pay cash for a piece of land in February at a cost of $46,080. ● Bates & Hill plans to purchase equipment in March at a cost of $38,400. ● Depreciation for manufacturing overhead $19,200 per month and for selling and administrative $6,400 per month. The company expects a 19% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. (a) Your answer is partially correct.     Prepare Bates & Hill’s pro-forma income statement for the first quarter. Pro-forma Income Statement  Interest ExpenseCost of Goods SoldIncome Before TaxesIncome Tax ExpenseSales RevenueSelling & Administrative Expense $  Income Before TaxesSales RevenueIncome Tax ExpenseCost of Goods SoldSelling & Administrative ExpenseInterest Expense  Non-Operating Income / (Loss)Non-Operating ExpensesNet Income / (Loss)Gross MarginOperating Income / (Loss)  Selling & Administrative ExpenseSales RevenueIncome Tax ExpenseInterest ExpenseCost of Goods SoldIncome Before Taxes  Gross MarginNon-Operating ExpensesOperating Income / (Loss)Net Income / (Loss)Non-Operating Income / (Loss)  Selling & Administrative ExpenseCost of Goods SoldSales RevenueInterest ExpenseIncome Before TaxesIncome Tax Expense  Sales RevenueIncome Before TaxesSelling & Administrative ExpenseInterest ExpenseCost of Goods SoldIncome Tax Expense  Selling & Administrative ExpenseSales RevenueInterest ExpenseIncome Tax ExpenseIncome Before TaxesCost of Goods Sold  Non-Operating Income / (Loss)Non-Operating ExpensesNet Income / (Loss)Gross MarginOperating Income / (Loss) $ SHOW ANSWER LINK TO TEXT Attempts: 1 of 1 used   (b)Prepare Bates & Hill’s pro-forma balance sheet as of March 31. Pro-forma Balance Sheet  Accounts ReceivableFinished Goods InventoryAccumulated DepreciationDirect Materials InventoryCashTotal AssetsTotal Liabilities and Equities $  Accounts ReceivableFinished Goods InventoryAccumulated DepreciationDirect Materials InventoryTotal Liabilities and EquitiesCashTotal Assets  CashFinished Goods InventoryAccumulated DepreciationAccounts ReceivableTotal AssetsDirect Materials InventoryTotal Liabilities and Equities  Finished Goods InventoryAccounts ReceivableAccumulated DepreciationDirect Materials InventoryCashTotal AssetsTotal Liabilities and Equities  CashAccumulated DepreciationAccounts ReceivableDirect Materials InventoryProperty, Plant & EquipmentTotal AssetsTotal Liabilities and Equities  Total Liabilities and EquitiesAccounts ReceivableCashDirect Materials InventoryFinished Goods InventoryAccumulated DepreciationTotal Assets  CashAccounts ReceivableDirect Materials InventoryFinished Goods InventoryTotal AssetsAccumulated DepreciationTotal Liabilities and Equities $  Accounts PayableTotal AssetsTaxes PayableNote PayableCommon StockTotal Liabilities and EquitiesRetained Earnings $  Retained EarningsCommon StockAccounts PayableTaxes PayableTotal Liabilities and EquitiesNote PayableTotal Assets  Retained EarningsTotal AssetsAccounts PayableTotal Liabilities and EquitiesTaxes PayableNote PayableCommon Stock  Taxes PayableNote PayableCommon StockRetained EarningsTotal Liabilities and EquitiesTotal AssetsAccounts Payable  Retained EarningsTotal AssetsTaxes PayableAccounts PayableTotal Liabilities and EquitiesNote PayableCommon Stock  Note PayableCommon StockTotal AssetsAccounts PayableTaxes PayableRetained EarningsTotal Liabilities and Equities $

Deadline: August 18, 2016, 2:01 pm

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