Bradley Company has the following post-closing trial balance on December 31, 2018:

BRADLEY COMPANY

Post-Closing Trial Balance December 31, 2018

Account

Debit

Credit

Cash

$ 15,000

Accounts Receivable

23,200

Raw Materials Inventory.

11,000

Finished Goods Inventory

25,900

Equipment

125,000

Accumulated Depreciation

$ 35,000

Accounts Payable

13,600

Common Stock

150,000

Retained Earnings

1,500

Totals

$ 200,100

$200,100

The company's accounting department has gathered the following budgeting information for the first quarter of 2019:

Budgeted total sales, all on account

$ 305,000

Budgeted direct materials to be purchased and used

32,000

Budgeted direct labor cost

12,500

Budgeted manufacturing overhead costs:

Variable manufacturing overhead

2,100

Depreciation

1,300

Insurance and property taxes

1,350

Budgeted cost of goods sold

72,000

Budgeted selling and administrative expenses:

Salaries expense

7,000

Rent expense

2,000

Insurance expense

1,100

Depreciation expense

550

Supplies expense

15,250

Budgeted cash receipts from customers

263,500

Budgeted income tax expense

41,000

Budgeted purchase and payment for capital expenditures (additional equipment)

43,000

Additional information:

a. Direct materials purchases are paid 70% in the quarter purchased and 30% in the next quarter.

b. Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred.

c. Accounts payable at December 31, 2018 are paid in the first quarter of 2019.

Requirements

1. Prepare Bradley Company's budgeted income statement for the first quarter of

2019. 2. Prepare Bradley Company' budgeted balance sheet as of March 31, 2019.