As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2015, the following tentative trial balance as of December 31, 2014, is prepared by the Accounting Department of Franklin Publishing Co Cash $ 26,000 Accounts Receivable $23,800 Finished Goods $16,900 Work in Process $4,200 Materials $6,400 Prepaid Expenses $600 Plant and Equipment $82,000 Accumulated Depreciation Plant and Equipment $32,000 Accounts Payable $14,800 Common Stock, $1 50 par $30,000 Retained Earnings $83,100 Debt Credit $159,900 $159,900 Factory output and sales for 2015 are expecteed to total 3,800 units of product, which are to be sold at $120 per unit The quantities and costs of the inventories at December 31, 2015, 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 summarizedas follows FIXED VARIABLE COGS direct materials $30 00 direct labor $8 40 factory overhead Dep pf plant and equipments $4,000 other factory overhead 1,1400 4 80 selling expenses sales, salaries commisions 12,800 13 50 advertising 13,200 misc selling expense 1,000 2 50 Admin expenses office and officers supplies 7,800 7 00 supplies 500 1 20 Misc Admin expenses 400 2 40 Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances Federal income tax of $35,000 on 2015 taxable income will be paid during 2015 Regular quarterly cash dividends of $0 20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding It is anticipated that fixed assets will be purchased for $22,000 cash in May 1 Prepare a budgeted income statement for 2013 2 Prepare a budgeted balance sheet as of December 31, 2013, with supporting calculations

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As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2015, the following tentative trial balance

As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2015, the following tentative trial balance as of December 31, 2014, is prepared by the Accounting Department of Franklin Publishing Co. Cash......................$ 26,000 Accounts Receivable....$23,800 Finished Goods..........$16,900 Work in Process.........$4,200 Materials..................$6,400 Prepaid Expenses.........$600 Plant and Equipment...$82,000 Accumulated Depreciation - Plant and Equipment...$32,000 Accounts Payable........................................$14,800 Common Stock, $1.50 par..............................$30,000 Retained Earnings.........................................$83,100 ---Debt---- ----Credit--- $159,900 $159,900 Factory output and sales for 2015 are expecteed to total 3,800 units of product, which are to be sold at $120 per unit. The quantities and costs of the inventories at December 31, 2015, 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 summarizedas follows:

	FIXED	VARIABLE
COGS
direct materials	-	$30.00
direct labor	-	$8.40
factory overhead:
Dep. pf plant and equipments	$4,000
other factory overhead	1,1400	4.80
selling expenses:
sales, salaries & commisions	12,800	13.50
advertising	13,200	-
misc. selling expense	1,000	2.50
Admin expenses:
office and officers supplies	7,800	7.00
supplies	500	1.20
Misc Admin expenses	400	2.40

Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $35,000 on 2015 taxable income will be paid during 2015. Regular quarterly cash dividends of $0.20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $22,000 cash in May. 1. Prepare a budgeted income statement for 2013. 2. Prepare a budgeted balance sheet as of December 31, 2013, with supporting calculations.