3. Apple Company has completed all operating budgets other than the income statement for 2017. Selected data from these budgets follow. Sales $240,000 Direct Labor $15,000 Purchase of raw materials $135,000 Manufacturing overhead (include depreciation expense $1,500) $33,000 Ending Inventory of raw materials $10,000 $31,000 Selling and administrative expenses (include depreciation expense $500) Dividends declared $2,000 Interest expense $1,000 Income tax rate 25% Principal payment on note $2,000 Assume that: The number of units produced equals the number sold. Year-end accounts receivable: 5% of 2017 sales. Year-end accounts payable: 50% of ending inventory of raw materials. Interest, direct labor, manufacturing overhead, and selling and administrative expenses other than depreciation and income tax are paid as incurred. Dividends declared and income taxes for 2017 will not be paid until 2018. Apple Company Balance Sheet December 31, 2016 Assets Current assets Cash $30,000 Raw materials inventory 15,000 Total current assets $45,000 Property, plant, and equipment Equipment $35,000 Less: accumulated depreciation 1,000 $34,000 $79,000 Total assets Liabilities and Stockholders' Equity Liabilities $6,000 Accounts payable Notes payable 22,000 Total liabilities $28,000 Stockholders' equity Common stock 23,000 Retained earnings 28,000 Total stockholders' equity 51,000 Total liabilities and stockholders' equity $79,000 Instructions (a) Prepare a budgeted income statement for the year Ending December 31, 2017. 10 Poin (b) Prepare a budgeted classified balance sheet as of December 31, 2017. 10 Poin COGS Apple Company Budgeted Income Statement DM DL MOH Total COGS Apple Company Balance Sheet Apple Company Cash Budget