Budget Inc. has completed all operating budgets except the income statement for 2022. Selected data from these budgets follow.

• Sales: $300,000
• Purchases of raw materials: $80,000
• Ending inventory of raw materials: $15,000
• Direct labor: $60,000
• Manufacturing overhead: $73,000, including $3,000 of depreciation expense
• Selling and administrative expenses: $36,000, including depreciation expense of $1,000
• Interest expense: $5,000
• Principal payment on long-term note: $20,000 each year
• Dividends declared: $20,000
• Income tax rate: 30%

Other information:

• Assume that there are no work-in-process or finished goods inventories.
• Year-end accounts receivable: 4% of 2022 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 are paid as incurred.
• Dividends declared and income taxes for 2022 will not be paid until 2023.

	Budget Inc.
	Balance Sheet
	31-Dec-21
Assets
Current assets
Cash		$20,000
Raw materials inventory		10,000
Total current assets		30,000
Long term investment		88,000
Property, plant, and equipment
Equipment	$40,000
Less: Accumulated depreciation	4,000	36,000
Total assets		$154,000
Liabilities and Stockholders' Equity
Liabilities
Accounts payable	$5,000
Long-term notes payable	110,000
Total liabilities		$115,000
Stockholders' equity
Common stock	25,000
Retained earnings	14,000
Total stockholders' equity		39,000
Total liabilities and stockholders' equity		$154,000

Please want a budgeted multiple-step income statement for the year ending December 31, 2022, and a budgeted classified balance sheet as of December 31, 2022. a