Langley Company has the following post-closing trial balance on December 31,2016:

Langley Company

Post-Closing Trial Balance

December 31, 2016

Account

Debit

Credit

Cash

$30,000

Accounts Receivable

20,000

Raw Materials Inventory

16,000

Finished Goods Inventory

26,000

Equipment

150,000

Accumulated Depreciation

$70,000

Accounts Payable

8,000

Common Stock

60,000

Retained Earnings

104,000

Totals

$242,000

$242,000

(Click the icon to view the post-closing trial balance.) The company's accounting department has gathered the following budgeting information for the first quarter of 2017:

Budgeted total sales, all on account

$308,000

Budgeted direct materials to be purchased and used

37,000

Budgeted direct labor cost

11,500

Budgeted manufacturing overhead costs:

Variable manufacturing overhead

2,100

Depreciation

800

Insurance and property taxes

1,450

Budgeted cost of goods sold

71,600

Budgeted selling and administrative expenses:

Salaries expense

7,500

Rent expense

2,800

Insurance expense

1,800

Depreciation expense

600

Supplies expense

6,160

Budgeted cash receipts from customers

261,000

Budgeted income tax expense

46,000

Budgeted purchase and payment for capital expenditures (additional equipment)

40,000

(Click the icon to view the budgeting information.)

Additional information:

a	Direct materials purchases are paid 50% in the quarter purchased and50%in the next quarter.
b.	Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred.

Read the requirements

Requirement 1. Prepare Langley Company's budgeted income statement for the first quarter of 2017.

Langley Company
Budgeted Income Statement
For the Quarter Ended March 31, 2017
Sales Revenue
Cost of Goods Sold
Gross Profit
Selling and Administrative Expenses
Income before Income Taxes
Income Tax Expense
Net Income

Requirement 2. Prepare Langley Company's budgeted statement of cash flows for the first quarter of 2017.

(Enter a use of cash with a minus sign or parentheses. Complete all input boxes. Enter a "0" for any zero balances.)

Langley Batting Company
Budgeted Statement of Cash Flows
For the Quarter Ended March 31, 2017
Operating Activities:
Cash receipts from customers
Cash payments for operating expenses
Cash payments for income taxes
Net cash provided by (used for) operating activities
Investing Activities:
Cash payments for equipment purchases
Net cash used for investing activities
Financing Activities:
Net cash provided by (used for) financing activities
Net increase (decrease) in cash
Cash balance, January 1, 2017
Cash balance, March 31, 2017

Requirement 3. Prepare

Langley Company's budgeted balance sheet as of March 31,2017.

Hint: Use the budgeted statement of cash flows prepared in Requirement 2 to determine the Cash balance.

Langley Company
Budgeted Balance Sheet
March 31, 2017
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