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 Cash $ 6,500 Accounts receivable 337,000 240,000 Inventory (January 1, Year 2) Plant and equipment 605,000 Accumulated depreciation Accounts payable Notes payable (due within one year) Accrued payables Common stock Betained garn Retained earnings Salon rem Sales revenue Other income Other income Manufacturing costs Materials Materials 850,000 Direct labor 900,000 545,000 Variable overhead Deprec Depreciation 37,000 Other fixed overhead 48,000 Marketing arketin Commissions 140,000 Salaries 81,000 Promotion and advertising cond 284,000 Administrative www Salaries 81,000 Travel 18,500 53,000 Office costs Income taxes Dividends 37,000 $4,263,000 $4,263,000 Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 350,000 units, and planned sales volume is 300,000 units. Sales and production volume was 200,000 units last year. The company uses a full- absorption costing and FIFO inventory system and is subject to a 40 percent income tax rate. The actual income statement for last year follows: PANTHER CORPORATION Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1 Revenues Sales revenue $1,700,000 Other income 55,000 $1,755,000 Expenses Cost of goods sold Materials $ 420,000 Direct labor 500,000 Variable overhead 215,000 Fixed overhead 65,000 $1,200,000 Beginning inventory 240,000 $1,440,000 Ending inventory 240,000 $1,200,000 Selling Salaries $ 71,000 Commissions 77,000 Promotion and advertising 143,000 291,000 General and administrative Salaries 73,000 Travel 17,000 Office costs 49,000 139,000 Income taxes 50,000 Operating profit Beginning retained earnings Subtotal Less dividends Ending retained earnings Required: Prepared a budgeted income statement and balance sheet. $ $ 181,000 197,000 217,000 110,000 450,000 468,000 2,570,000 70,000 1,680,000 75,000 430,000 $ 505,000 37,000 $ 468,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
Cash
6,500
Accounts receivable
337,000
Inventory (January 1, Year 2)
Plant and equipment
Accumulated depreciation
Accounts payable
Notes payable (due within one year)
Accrued payables
240,000
605,000
$
181,000
197,000
217,000
110,000
Common stock
450,000
Retained earnings
468,000
Sales revenue
2,570,000
Other income
70,000
Manufacturing costs
Materials
850,000
Direct labor
900,000
545,000
37,000
Variable overhead
Depreciation
Other fixed overhead
48,000
Marketing
Commissions
140,000
Salaries
81,000
Promotion and advertising
Administrative
Salaries
Travel
284,000
81,000
18,500
Office costs
53,000
Income taxes
Dividends
37,000
$4,263,000
$4,263,000
Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 350,000o
units, and planned sales volume is 300,000 units. Sales and production volume was 200,000 units last year. The company uses a full-
absorption costing and FIFO inventory system and is subject to a 40 percent income tax rate. The actual income statement for last
year follows:
PANTHER CORPORATION
Statement of Income and Retained Earnings
For the Budget Year Ended December 31, Year 1
Revenues
Sales revenue
$1,700,000
55,000
Other income
$1,755,000
Expenses
Cost of goods sold
Materials
420,000
Direct labor
500,000
Variable overhead
215,000
65,000
$1,200,000
240,000
Fixed overhead
Beginning inventory
$1,440,000
240,000
Ending inventory
Selling
Salaries
$1,200,000
$
71,000
Commissions
77,000
Promotion and advertising
143,000
291,000
General and administrative
Salaries
2$
73,000
Travel
17,000
Office costs
49,000
139,000
Income taxes
50,000
1,680,000
Operating profit
Beginning retained earnings
75,000
430,000
Subtotal
505,000
Less dividends
37,000
Ending retained earnings
468,000
Required:
Prepared a budgeted income statement and balance sheet.
Transcribed Image Text: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 Cash 6,500 Accounts receivable 337,000 Inventory (January 1, Year 2) Plant and equipment Accumulated depreciation Accounts payable Notes payable (due within one year) Accrued payables 240,000 605,000 $ 181,000 197,000 217,000 110,000 Common stock 450,000 Retained earnings 468,000 Sales revenue 2,570,000 Other income 70,000 Manufacturing costs Materials 850,000 Direct labor 900,000 545,000 37,000 Variable overhead Depreciation Other fixed overhead 48,000 Marketing Commissions 140,000 Salaries 81,000 Promotion and advertising Administrative Salaries Travel 284,000 81,000 18,500 Office costs 53,000 Income taxes Dividends 37,000 $4,263,000 $4,263,000 Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 350,000o units, and planned sales volume is 300,000 units. Sales and production volume was 200,000 units last year. The company uses a full- absorption costing and FIFO inventory system and is subject to a 40 percent income tax rate. The actual income statement for last year follows: PANTHER CORPORATION Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1 Revenues Sales revenue $1,700,000 55,000 Other income $1,755,000 Expenses Cost of goods sold Materials 420,000 Direct labor 500,000 Variable overhead 215,000 65,000 $1,200,000 240,000 Fixed overhead Beginning inventory $1,440,000 240,000 Ending inventory Selling Salaries $1,200,000 $ 71,000 Commissions 77,000 Promotion and advertising 143,000 291,000 General and administrative Salaries 2$ 73,000 Travel 17,000 Office costs 49,000 139,000 Income taxes 50,000 1,680,000 Operating profit Beginning retained earnings 75,000 430,000 Subtotal 505,000 Less dividends 37,000 Ending retained earnings 468,000 Required: Prepared a budgeted income statement and balance sheet.
Required:
Prepared a budgeted income statement and balance sheet.
Complete this question by entering your answers in the tabs below.
Budgeted Inc
Stmt
Budgeted
Balance Sheet
Prepared a budgeted income statement. (Round "Cost per unit" to 2 decimal places. Do not round any other intermediate
calculations.)
PANTHER CORPORATION
Budgeted Income Statement
For the Year Ended December 31, Year 2
Revenue:
Sales revenue
Other income
Total Revenue
$
Expenses:
Cost of goods manufactured & sold:
Materials
Direct labor
Variable overhead
Fixed overhead
Beginning inventory
Ending inventory
Marketing:
Salaries
Commissions
Promotions and advertising
Administrative:
Salaries
Travel
Office costs
Income taxes (credit)
Total expenses
Operating profit (loss)
< Budgeted Inc Stmt
Budgeted Balance Sheet >
Transcribed Image Text:Required: Prepared a budgeted income statement and balance sheet. Complete this question by entering your answers in the tabs below. Budgeted Inc Stmt Budgeted Balance Sheet Prepared a budgeted income statement. (Round "Cost per unit" to 2 decimal places. Do not round any other intermediate calculations.) PANTHER CORPORATION Budgeted Income Statement For the Year Ended December 31, Year 2 Revenue: Sales revenue Other income Total Revenue $ Expenses: Cost of goods manufactured & sold: Materials Direct labor Variable overhead Fixed overhead Beginning inventory Ending inventory Marketing: Salaries Commissions Promotions and advertising Administrative: Salaries Travel Office costs Income taxes (credit) Total expenses Operating profit (loss) < Budgeted Inc Stmt Budgeted Balance Sheet >
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