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: Adjustments for the change in inventory and for income taxes have not been made. The scheduled
production for this year is 450,000 units, and planned sales volume is 400,000 units. Sales and
production volume was 300,000 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: Required
Prepared a budgeted income statement and balance shee