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, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.: Cash $98,700 Accounts Receivable 167,800 Finished Goods 35,200 Work in Process 23,500 Materials 38,600 Prepaid Expenses 2,900 Plant and Equipment 441,200 Accumulated DepreciationPlant and Equipment $189,700 Accounts Payable 124,100 Common Stock, $10 par 300,000 Retained Earnings 194,100 $807,900 $807,900 Factory output and sales for 20Y9 are expected to total 22,000 units of product, which are to be sold at $100 per unit. The quantities and costs of the inventories at December 31, 20Y9, 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 Fixed (Total for Year) Variable (Per Unit Sold) Cost of goods manufactured and sold: Direct materials _ $25 Direct labor _ 8 Factory overhead: Depreciation of plant and equipment $22,000 _ Other factory overhead 6,800 4.5 Selling expenses: Sales salaries and commissions 79,000 12.5 Advertising 66,000 _ Miscellaneous selling expense 5,700 2 Administrative expenses: Office and officers salaries 51,900 6.5 Supplies 2,600 1 Miscellaneous administrative expense 1,400 1.5 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 $186,800 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 30,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $119,000 cash in May. Required: Question Content Area 1. Prepare a budgeted income statement for 20Y9