George Robinson, Marigold & Kenneth’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 $ 32,200 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 $427,480 Accounts Payable $ 18,000 Income Tax Payable 26,400 Common Stock 100,000 Retained Earnings 283,080 Total Liabilities & Owners Equity $427,480 Selected Estimates Quarter Budgeted revenue $1,779,900 Selling and administrative expense 428,700 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 5,000 Additional Information: Marigold & Kenneth plans to purchase and pay cash for a piece of land in February at a cost of $90,000. Marigold & Kenneth 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) Prepare Marigold & Kenneth’s 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).) Marigold& Hill Income Statement First Quarter select an income statemet item $enter a dollar amount select an income statemet item enter a dollar amount select a summarizing line for the first part enter a total amount for the first part select an income statemet item enter a dollar amount select a summarizing line for the second part enter a total amount for the second part select an income statemet item enter a dollar amount select a summarizing line for the third part enter a total amount for the third part select an income statemet item enter a dollar amount select a closing name for this statement $enter a total net income or loss amount

George Robinson, Marigold & Kenneth’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 $ 32,200 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 $427,480 Accounts Payable $ 18,000 Income Tax Payable 26,400 Common Stock 100,000 Retained Earnings 283,080 Total Liabilities & Owners Equity $427,480 Selected Estimates Quarter Budgeted revenue $1,779,900 Selling and administrative expense 428,700 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 5,000 Additional Information: Marigold & Kenneth plans to purchase and pay cash for a piece of land in February at a cost of $90,000. Marigold & Kenneth 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) Prepare Marigold & Kenneth’s 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).) Marigold& Hill Income Statement First Quarter select an income statemet item $enter a dollar amount select an income statemet item enter a dollar amount select a summarizing line for the first part enter a total amount for the first part select an income statemet item enter a dollar amount select a summarizing line for the second part enter a total amount for the second part select an income statemet item enter a dollar amount select a summarizing line for the third part enter a total amount for the third part select an income statemet item enter a dollar amount select a closing name for this statement $enter a total net income or loss amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Selected Estimates		Quarter
Budgeted revenue		$1,779,900
Selling and administrative expense		428,700
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		5,000

(a)

Prepare Marigold & Kenneth’s 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).)

Marigold& Hill Income Statement First Quarter
select an income statemet item		$enter a dollar amount
select an income statemet item		enter a dollar amount
select a summarizing line for the first part		enter a total amount for the first part
select an income statemet item		enter a dollar amount
select a summarizing line for the second part		enter a total amount for the second part
select an income statemet item		enter a dollar amount
select a summarizing line for the third part		enter a total amount for the third part
select an income statemet item		enter a dollar amount
select a closing name for this statement		$enter a total net income or loss amount

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Cash		$ 32,200
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		$427,480
Accounts Payable		$ 18,000
Income Tax Payable		26,400
Common Stock		100,000
Retained Earnings		283,080
Total Liabilities & Owners Equity		$427,480