2. Budgeted Income Statement and Balance Sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2014 Factory output and sales for 20Y4 are expected to total 25,000 units of product, which are to be sold at $90 per unit. The quantities and costs of the inventories at December 31, 20Y4, 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: Estimated Costs and Expenses Fixed (Total for Year) Variable (Per Unit Sold) Cost of goods manufactured and sold: Direct materials Direct labor Factory overhead: Depreciation of plant and equipment $25,000 Other factory overhead 7,800 Selling expenses: Sales salaries and commissions 89,800 Advertising 75,000 Miscellaneous selling expense 6,500 Administrative expenses: Office and officers salaries 59,000 Supplies 3,000 Miscellaneous administrative expense 1,600 Federal income tax of $178,400 on 20Y4 taxable income will be paid during 2014. It is anticipated that fixed assets will be purchased for $136,000 cash in May. Required: 4. Prepare a budgeted income statement for 20Y4