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) 25% Dividends declared $2,000 Interest expense $1,000 Income tax rate 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 15,000 $45,000 Raw materials inventory Total current assets Property, plant, and equipment Equipment Less: accumulated depreciation $35,000 1,000 $34,000 Total assets $79,000 Liabilities and Stockholders' Equity Liabilities $6,000 22,000 $28,000 Accounts payable Notes payable Total liabilities Stockholders' equity Common stock Retained earnings 23,000 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