2. Prepare BallehUl 4 P22-50B Completing a comprehensive budgeting problell n sells tires The Gavin Tire Company manufactures racing tires for bicycles. Gavin s for $70 each. Gavin is planning for the next year by developing a master quarters. Gavin's balance sheet for December 31, 2018, follows: company 0 budget by GAVIN TIRE COMPANY Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory $ 20,000 30,000 3,000 10,800 Total Current Assets 63,800 Property, Plant, and Equipment: Equipmemt Less: Accumulated Depreciation 168,000 129,000 $192,800 (39,000) Total Assets Liabilities Current Liabilities: Accounts Payable Common Stock, no par Total Stockholders' Equity $16,000 Stockholders' Equity 130,000 46,800 Retained Earnings 176,800 $192,800 Total Liabilities and Stockholders' Equity Other data for Gavin Tire Company a. Budgeted sales are 1,000 tires for the first quarter and expected to increase 200 tires per quarter. Cash sales are expected to be 10% of total sales, with the remaining 90% of sales on account. b. Finished Goods Inventory on December 31, 2018, consists of 300 tires at $36 each