1. Prepare Sharpe Company's budgeted income statement for the first quarter of 2019. 2. Prepare Sharpe Company's budgeted balance sheet as of March 31, 2019. Sharpe Company has the following post-closing trial balance on December 31, 2018: ES(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 2019: (Click the icon to view the budgeting information.) Additional information: a. Direct materials purchases are paid 70% in the quarter purchased and 30% in the next quarter. b. Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred. C. Accounts payable at December 31, 2018 are paid in the first quarter of 2019. Read the requirements. Requirement 1. Prepare Sharpe Company's budgeted income statement for the first quarter of 2019. Sharpe Company Budgeted Income Statement For the Quarter Ended March 31, 2019 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Income before Income Taxes Income Tax Expense Net Income - - - - - - LC!LI LI IL A LA Sharpe Company Post-Closing Trial Balance December 31, 2018 Account Debit Credit Cash $ Accounts Receivable Raw Materials Inventory 20,000 16,700 14,000 25,800 120,000 Finished Goods Inventory Equipment Accumulated Depreciation Accounts Payable Common Stock 50,000 15,200 130,000 1,300 Retained Earnings $ 196,500 $ 196,500 Totals 308,000 33,000 11,500 Budgeted total sales, all on account Budgeted direct materials to be purchased and used Budgeted direct labor cost Budgeted manufacturing overhead costs: Variable manufacturing overhead Depreciation Insurance and property taxes Budgeted cost of goods sold Budgeted selling and administrative expenses: Salaries expense 2,300 1,200 1,000 71,300 13,000 Rent expense 1,500 Insurance expense 1,200 Depreciation expense Supplies expense Budgeted cash receipts from customers 400 3,080 261,500 50,000 Budgeted income tax expense