As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Mesa Publishing Co.:

Factory output and sales for 20Y9 are expected to total 3,800 units of product, which are to be sold at $120 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year.
Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows:

Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $35,000 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of $0.20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $22,000 cash in May.
Instructions
1. Prepare a budgeted income statement for 20Y9.
2. Prepare a budgeted balance sheet as of December 31, 20Y9, with supporting calculations.

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$ 26,000 23,800 16,900 4,200 6,400 600 82,000 Finished Goods Work in Process . . . . 32,000 14,800 30,000 83,100 Retained Earnings $159900 $159,900 Estimated Costs and Expenses Fixed (Total for Year) Variable (Per Unit Sold Cost of goods manufactured and sold $30.00 8.40 Factory overhead 4,000 1,400 4.80 Selling expenses: 12,800 13,200 1,000 13.50 2.50 Administrative expenses 7,800 500 400 Office and officers salaries 7.00 1.20 2.40 . . . . .. . . . . . . .