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, 2089, the following tentative trial balance as of December 31, 2048, is prepared by the Accounting Department of Regina Soap Co.: Cash $115,600 219,600 Accounts Receivable Finished Goods 46,100 Work in Process Materials 30,700 50,500 3,700 Prepaid Expenses Plant and Equipment 598,800 Accumulated Depreciation-Plant and Equipment $257,500 178,400 Accounts Payable Common Stock, $10 par 350,000 Retained Earnings 279,100 $1,065,000 $1,065,000 Factory output and sales for 2049 are expected to total 29,000 units of product, which are to be sold at $110 per unit. The quantities and costs of the inventories at December 31, 2019, 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 $28 Direct labor Factory overhead: Depreciation of plant and equipment $29,000 Other factory overhead 9,000 Selling expenses: Sales salaries and commissions 104,100 87,000 Advertising Miscellaneous selling expense 7,500 Administrative expenses: Office and officers salaries 68,400 3,500 Supplies Miscellaneous administrative expense 1,800 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 $281,000 on 2049 taxable income will be paid during 2049. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $162,000 cash in May. 1. Prepare a budgeted income statement for 2049. Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 2049 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 Advertising Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers salaries Supplies Miscellaneous administrative expense Direct labor Factory overhead Cost of goods sold Ou Gross profit Operating expenses: Selling expenses: Sales salaries and commissions 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 und Net income 2. Prepare a budgeted balance sheet as of December 31, 2049. Regina Soap Co. Budgeted Balance Sheet December 31, 2049 Assets Current assets: $ Cash Accounts receivable Inventories: $ Finished goods Work in process Materials Prepaid expenses Total current assets Property, plant, and equipment: Plant and equipment Accumulated depreciation Prepaid expenses Total current assets Property, plant, and equipment: Plant and equipment Accumulated depreciation Total property, plant, and equipment Total assets Liabilities Current liabilities: Accounts payable Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity