CES KRAUSE INDUSTRIES Balance Sheet December 31 2016 Assets

CES KRAUSE INDUSTRIES Balance Sheet December 31, 2016 Assets Current Assets udy Cash Accounts receivable Finished goods inventory (1,500 units) $7,500 73,500 26,190 107,190 Total current assets Property, Plant, and Equipment $40,580 Equipment Less: Accumulated depreciation 10,98029,600 $136,790 Total assets Liabilities and Stockholders\' Equity Liabilities Notes payable Accounts payable $26,260 46,550 72,810 Total liabilities Stockholders\' Equity $38,510 25,470 Common stock Retained earnings Total stockholders\' equity 63,980 $136,790 Total liabilities and stockholders\' equity

Solution

Krause Industries Budgeted Cost of Goods Sold For the Year Ending Dec 31, 2017 Direct Materials Used      62,500.00 Direct Labor      50,900.00 Manufacturing Overhead Applied      49,170.00 Total Manufacturing Costs    162,570.00 Add: Finished Goods Inventory - Dec 31, 2016      26,190.00 Cost of Goods Available for Sale    188,760.00 Less: Finished Goods Inventory - Dec 31, 2017 - 2,500 Units X $18      45,000.00 Cost of Goods Sold    143,760.00 Krause Industries Budgeted Income Statement For the Year Ending Dec 31, 2017 Sales - 8,000 Units X $32    256,000.00 Cost of Goods Sold    143,760.00 Gross Profit    112,240.00 Selling & Administrative Expenses      75,000.00 Income from Operation      37,240.00 Interest Expense        3,500.00 Income before Income Tax      33,740.00 Income Tax Expense - $33,740 X 40%      13,496.00 Net Income      20,244.00 Krause Industries Budgeted Retained Earning Statement For the Year Ending Dec 31, 2017 Beginning Balance, Dec 31, 2017      25,470.00 Add: Net Income      20,244.00 Sub-total      45,714.00 Less: Dividend        8,620.00 Ending Balance, Dec 31, 2018      37,094.00 Krause Industries Budgeted Balance Sheet Dec 31, 2017 Assets Current Assets Cash        5,880.00 Accounts Receivable - $76,800 X 40%      30,720.00 Finished Goods Inventory - 2,500 Units      45,000.00 Total Current Assets      81,600.00 Property, Plant & Equipment Equipment - $40,580 + $10,290      50,870.00 Less: Accumulated dep. - $10,980 + $4,816      15,796.00      35,074.00 Total Assets    116,674.00 Liabilities & Stockholders\' Equity Notes Payable - $26,260 - $8,260      18,000.00 Accounts Payable - $14,080 X 50% + $8,260      15,300.00 Income Tax Payable        7,770.00 Total Liabilities      41,070.00 Stockholders\' Equity Common Stock      38,510.00 Retained Earnings      37,094.00 Total Stockholders\' Equity      75,604.00 Total Liabilities & Stockholders\' Equity    116,674.00