Additional information: a. Direct materials purchases are paid 70 7 0 % in the q

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Additional information: a. Direct materials purchases are paid 7070 % in the quarter purchased and 3030 % in the next quarter. b. Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred. c. Accounts payable at DecemberDecember 3131 , 20182018 are paid in the first quarter of 20192019 . a. Direct materials purchases are paid 7070 % in the quarter purchased and 3030 % in the next quarter. 7070 % 3030 % b. Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred. c. Accounts payable at DecemberDecember 3131 , 20182018 are paid in the first quarter of 20192019 . DecemberDecember 3131 , 20182018 20192019 . Read the requirements LOADING... . requirements LOADING... . LOADING... Requirement 1. Prepare HaneyHaney Company's budgeted income statement for the first quarter of 20192019 . HaneyHaney 20192019 . Haney Company Budgeted Income Statement For the Quarter Ended March 31, 2019 Sales Revenue $ 307,000 Cost of Goods Sold 71,100 Gross Profit 235,900 Selling and Administrative Expenses 22,930 Income before Income Taxes 212,970 Income Tax Expense 42,000 Net Income $ 170,970 Haney Company Budgeted Income Statement For the Quarter Ended March 31, 2019 Sales Revenue $ 307,000 Cost of Goods Sold 71,100 Gross Profit 235,900 Selling and Administrative Expenses 22,930 Income before Income Taxes 212,970 Income Tax Expense 42,000 Net Income $ 170,970 Haney Company Budgeted Income Statement For the Quarter Ended March 31, 2019 Sales Revenue $ 307,000 $ 307,000 Cost of Goods Sold 71,100 71,100 Gross Profit 235,900 235,900 Selling and Administrative Expenses 22,930 22,930 Income before Income Taxes 212,970 212,970 Income Tax Expense 42,000 42,000 Net Income $ 170,970 $ 170,970 Requirement 2. Prepare HaneyHaney Company's budgeted balance sheet as of MarchMarch 3131 , 20192019 . HaneyHaney MarchMarch 3131 , 20192019 . Haney Company Budgeted Balance Sheet March 31, 2019 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Haney Company Budgeted Balance Sheet March 31, 2019 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Haney Company Budgeted Balance Sheet March 31, 2019 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity a. Direct materials purchases are paid 7070 % in the quarter purchased and 3030 % in the next quarter. b. Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred. c. Accounts payable at DecemberDecember 3131 , 20182018 are paid in the first quarter of 20192019 . Budgeted total sales, all on account Budgeted direct materials to be purchased and used Budgeted direct labor cost Budgeted manufacturing overhead costs 307,000 40,000 13,320 Haney Company Post-Closing Trial Balance December 31, 2018 Account Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Equipment Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals Debit Credit Variable manufacturing overhead Depreciation Insurance and property taxes 2,220 800 1,050 71,100 S 14,000 21,600 12,000 26,850 165,000 Budgeted cost of goods sold Budgeted selling and administrative expenses: Salaries expense Rent expense Insurance expense Depreciation expense Supplies expense ,000 4,000 1,300 350 12,280 260,000 42,000 34,000 70.000 12,800 100,000 56,650 239,450 S 239,450 $ Budgeted cash receipts from customers Budgeted income tax expense Budgeted purchase and payment for capital expenditures (additional equipment) Print Done

Explanation / Answer

Workings:

Haney Company Budgeted Balance Sheet March 31, 2019 Assets Current Assets: Cash 118030 Accounts receivable (21600+307000-260000) 68600 Raw materials inventory 12000 Finished goods inventory 13140 Total current assets 211770 Property, plant, and equipment Equipment (165000 + 34000) 199000 Less: Accumulated depreciation (70000+800+350) -71150 127850 Total assets 339620 Liabilities Current liabilities: Accounts payable (40000 x 30%) 12000 Stockholders' Equity Common stock 100000 Retained earnings (56650 + 170970) 227620 Total stockholders' equity 327620 Total liabilities and stockholders' equity 339620

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