As preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2019, the following tentative trial balance as of December 31, 20Y8, is 1149 Chapter 22 Budgeting Obj. 4,5 PR 22-68 Budgeted income statement and balance sheet 1. Budgeted net Income, $114660 prepared by the Accounting Department of Mesa Publishing Co. Cash. $ 26,000 23.800 16.00 4200 Accounts Receivable. Finished Goods Work in Process Materials Prepaid Expenses Plant and Equipment Accumulated Depreciation Plan and Equipment Accounts Payable Common Stock, 51.50 par, Retained Earnings 600 32.000 $ 32.000 14.800 30.000 81.100 $159.900 $199.900 8.40 Factory output and sales for 2019 are expected 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, 2019, are ex pected 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 Fixed Variable Total for Year Per Unit Sold Cost of goods manufactured and sold Direct materials $30,00 Direct labor Factory Overhead Depreciation of plant and equipment... $ 4,000 Other factory overhead... 1400 4.80 Selling expenses Sales salaries and commissions. 12,800 13.50 Advertising...... 13.200 Miscellaneous selling expense 1,000 Administrative expenses: 7.00 7.800 Office and officers salaries 500 1.20 Supplies 400 2.40 Miscellaneous administrative expense 2.50 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 2049 taxable income will be paid during 2049. 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. Instructions 1. Prepare a budgeted income statement for 2049. 2. Prepare a budgeted balance sheet as of December 31, 2019, with supporting calculations