Budgeted Income Statement and Balance Sheet As a 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 prepared by the Accountin Department of Mesa Publishing Co.: $ 26,000 Cash Accounts Receivable Finished Goods Work in Process 23,800 16,900 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 $159,900 $159,900 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 expected to remain unchan 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 (Total for Year) Variable (Per Unit Sold) Cost of goods manufactured and sold: Direct materials $30.00 8.40 Direct labor Factory overhead: Depreciation of plant and equipment $ 4,000 1,400 Other factory overhead elling expenses: Sales salaries and commissions 12,800 13,200 Advertising Miscellaneous selling expense 1,000 2.50 dministrative expenses: Office and officers salaries 7,800 7.00 Supplies 500 1.20 Miscellaneous administrative expense 400 2.40 alances 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 ill 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 nticipated that fixed assets will be purchased for $22,000 cash in May. equired: Prepare a budgeted income statement for 2049. Mesa Publishing Co. Budgeted Income Statement For the Year Ending December 31, 2049 Sales Cost of goods sold: Cost of goods sold Gross profit Operating expenses: Semy expenses. Total selling expenses Administrative expenses: Total administrative expenses Total operating expenses Income before income tax 2. Prepare a budgeted balance sheet as of December 31, 2019. Mesa Publishing Co. Budgeted Balance Sheet December 31, 2019 Assets Current assets: Inventories: Inventories: Total current assets Property, plant, and equipment: Total property, plant, and equipment Total assets Liabilities Current liabilities: Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity