Budgeted Income Statement and Balance Sheet As a preliminary to requesting budget estimates of sales, costs and expenses for the fiscal year beginning Jan.01, 2022, the following tentative Trial balance as Dec. 31, 2021, is prepared by Accounting Department of Gamble, co. Cash P 85000 Accounts Receivable 125,600 Finished Goods 69,300 Work in Process 32,500 Materials 48,900 Prepaid Expenses 2,600 Plant & Equipment 325,000 Acc Depreciation-PPE P 156,200 Accounts Payable 62,000 Common Stock P10 par 180,000 Retained Earnings 290,700 P 688,900 P688,900 ======== ======= Factory overhead and sales for 2022 are expected to total 200,000 units of product which are to be sold at P5 per unit. The quantities and cost of the inventories at December 31, 2022, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing cost and operating expenses for the year are summarized as follows: Estimated Cost & Expenses Fixed Variable (Total for the yr) (Total Unit Sold) ________________________________________________________ Cost of Goods Manufactured and Sold: Direct Materials - P 1.10 Direct Labor - 0.65 Factory overhead: Deprn. Plant & Equipment P 40,000 - Other Factory overhead 12,000 0.40 Selling expenses: Sales salaries and commissions 45,000 0.45 Advertising 64,000 - Miscellaneous selling expenses 6,000 0.25 Administrative expenses: Office and Officers salaries 72,400 0.12 Supplies 5,000 0.10 Miscellaneous Administrative exp 4,000 0.05 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. Income tax of P30,000 on 2021 taxable income will be paid during 2021. Regular quarterly cash dividends of P0.15 per share are expected to be declared and paid in March, June, September and December on 18,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for P75,000 in May. Instructions: 1. Prepare a budgeted Income Statement for 2022 2. Prepare a budgeted Balance Sheet as of December 31, 2022 with supporting calculations.