There Are Two 2 Questionsquestion 1 Show All Workings Could

There Are Two 2 Questionsquestion 1 Show All Workings Could Be Do There are two (2) questions. Question 1: Show all workings. Could be done in word or excel format. Question 2: Answer should be in word document format. QUESTION 1 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 as of December 31 is as follows: Cash…………………………………………….. $36,000 Accounts Receivable (net) ……………………… 35,100 Finished Goods Inventory ………………………29,400 Raw Materials Inventory ……………………… 4,536 Property, Plant & Equipment ………………… 180,000 Accumulated Depreciation …………………… (45,000) Total Assets …………………………………… $240,036 Accounts Payable …………………………….. $10,800 Income Tax Payable ………………………….. 45,156 Common Stock ……………………………….. 60,000 Retained Earnings ……………………………. 124,080 Total Liabilities & Owners Equity…………… $240,036 Quarter Budgeted revenue $846,000 Selling and administrative expense 159,840 Interest expense 2,028 Cash 18,465 Cost of Goods Sold 602,022 Accounts receivable 81,900 Direct materials 3,336 Finished goods 35,409 Accounts payable 19,920 Notes payable 24,600 Additional Information: Bates & Hill plans to declare and pay dividends totaling $29,400 in January. Bates & Hill plans to purchase and pay cash for a piece of land in February at a cost of $43,200. Bates & Hill plans to purchase equipment in March at a cost of $36,000. Depreciation for manufacturing overhead $18,000 per month and for selling and administrative $6,000 per month. The company expects an 18% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. The company expects a 30% income tax rate, and all quarterly taxes are paid in the first month of the following quarter. Required: Prepare Bates & Hill’s pro-forma income statement for the first quarter.