Brian Lee, Coronado & Anthony'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:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The company expects a 30 % income tax rate, and all quarterly taxes are paid in the first month of the following quarter.
(a)
Prepare Coronado & Anthony'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).)
Coronado& Hill
Income Statement
First Quarter
t
+
$
$
Transcribed Image Text:The company expects a 30 % income tax rate, and all quarterly taxes are paid in the first month of the following quarter. (a) Prepare Coronado & Anthony'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).) Coronado& Hill Income Statement First Quarter t + $ $
Brian Lee, Coronado & Anthony'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
Finished Goods Inventory
Accounts Receivable (net)
Raw Materials Inventory
Property, Plant & Equipment
Accumulated Depreciation
Total Assets
Accounts Payable
Income Tax Payable
Common Stock
Retained Earnings
Total Liabilities & Owners Equity
Selected Estimates
Budgeted revenue
Selling and administrative expense
Interest expense
Cash
Cost of Goods Sold
Accounts receivable (net)
Direct materials
Finished goods
Accounts payable
Notes payable
Additional Information:
$32,100
22,500
98,100
49,280
300,000
(75,000)
$426,980
$ 18,000
26,400
100,000
282,580
$426,980
Quarter
$1,784,400
426,700
370
50,380
1,389,630
174,720
29,160
104,720
218,700
3,000
Coronado & Anthony plans to purchase and pay cash for a piece of land in February at a cost of $90,000.
Coronado & Anthony 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.
Transcribed Image Text:Brian Lee, Coronado & Anthony'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 Finished Goods Inventory Accounts Receivable (net) Raw Materials Inventory Property, Plant & Equipment Accumulated Depreciation Total Assets Accounts Payable Income Tax Payable Common Stock Retained Earnings Total Liabilities & Owners Equity Selected Estimates Budgeted revenue Selling and administrative expense Interest expense Cash Cost of Goods Sold Accounts receivable (net) Direct materials Finished goods Accounts payable Notes payable Additional Information: $32,100 22,500 98,100 49,280 300,000 (75,000) $426,980 $ 18,000 26,400 100,000 282,580 $426,980 Quarter $1,784,400 426,700 370 50,380 1,389,630 174,720 29,160 104,720 218,700 3,000 Coronado & Anthony plans to purchase and pay cash for a piece of land in February at a cost of $90,000. Coronado & Anthony 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.
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