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 Accounts Receivable Finished Goods Work in Process Materials $107,400 193,300 40,600 27,100 44,500 Prepaid Expenses 3,300 Plant and Equipment 553,100 Accumulated Depreciation-Plant and Equipment $237,800 Accounts Payable 187,800 Common Stock, $10 par Retained Earnings 250,000 293,700 $969,300 $969,300 Factory output and sales for 20Y9 are expected to total 26,000 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 Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials Direct labor $25 8 Factory overhead: Depreciation of plant and equipment $26,000 Other factory overhead 8,100 4.5 Selling expenses: Sales salaries and commissions 93,300 12.5 Advertising 78,000 | Miscellaneous selling expense 6,800 2 Administrative expenses: Office and officers salaries 61,400 6.5 Supplies 3,100 1 Miscellaneous administrative expense 1,600 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 $220,700 on 20Y9 taxable income will be paid during 2019. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 25,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $149,000 cash in May. Required: 1. Prepare a budgeted income statement for 20Y9. Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 20Y9 Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Operating expenses: Selling expenses: Sales salaries and commissions 2,600,000 Advertising Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers salaries Supplies Miscellaneous administrative expense Total administrative expenses Total operating expenses Income before income tax Income tax expense Net income 2. Prepare a budgeted balance sheet as of December 31, 20Y9. Regina Soap Co. Budgeted Balance Sheet December 31, 20Y9 Assets Current assets: Inventories: Total current assets Property, plant, and equipment: Total property, plant, and equipment Total assets $ $ $ $ Property, plant, and equipment: Total property, plant, and equipment Total assets Current liabilities: Liabilities Stockholders' Equity $ Total stockholders' equity Total liabilities and stockholders' equity $ $