As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2049, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.: Cash $109,000 199,500 Accounts Receivable Finished Goods Work in Process 41,900 27,900 Materials 45,900 Prepaid Expenses 3,400 541,700 Plant and Equipment $232,900 Accumulated Depreciation-Plant and Equipment Accounts Payable Common Stock, $10 par 189,700 250,000 Retained Earnings 296,700 $969,300 $969,300 Factory output and sales for 2019 are expected to total 26,000 units of product, which are to be sold at $120 per unit. The quantities and costs of the inventories at December 31, 2019, 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 Estimated costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials Direct labor Factory overhead: Depreciation of plant and equipment Other factory overhead $26,000 8,100 Selling expenses: Sales salaries and commissions Advertising 93,300 78,000 Miscellaneous selling expense 6,800 Administrative expenses: Office and officers salaries 61,400 3,100 Supplies Miscellaneous administrative expense 1,600 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 $283,100 on 2049 taxable income will be paid during 2049. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 25,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $146,000 cash in May. Budgeted Income Statement For the Year Ending December 31, 2019 Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Operating expenses: Selling expenses: Sales salaries and commissions Advertising Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers salaries Supplies Miscellaneous administrative expensex Total administrative expenses Totalanarating nonco Income before income tax Income tax expense Net income Feedback 2. Prepare a budgeted balance sheet as of December 31, 2049. Regina Soap Co. Budgeted Balance Sheet December 31, 2049 Assets Current assets: Cash Accounts receivable Inventories: Finished goods Work in process Materials Prepaid expenses Total current assets Finished goods Work in process Materials Prepaid expenses Total current assets Property, plant, and equipment: Plant and equipment Accumulated depreciation Total property, plant, and equipment Total assets Liabilities ties Current liabilities: Accounts payable Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity