Budgeted Income Statement and Balance Sheet As a preliminary to requesting bu: t estimates of salesr costs, and expenses for the fiscal year beginning Januaryr 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap (30.: 9 Cash $105,300 Accounts Receivable 179,000 Finished Goods 37,600 Work in Process 25,100 Materials 41,200 Prepaid Expenses 3,000 Plant and Equipment 476,000 ) Accumulated DepreciationPlant and Equipment $204,700 Accounts Payable 121,900 Common Stock, $10 par 350,000 Retained Earnings 190,600 $867,200 $367,200 Factory output and sales for 20Y9 are expected to total 23,000 units of product, which are to be sold at 5100 per unit. The quantities and costs of the inventories at December 31, 20Y9. are expected to remain unchanged from the balances at the beginning ofthe year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Fixed Variable (Iotal for Year) {Per Unit Sold} Cost of goods manufactured and sold: Direct materials $25 Direct labor 8 Factory overhead: Depreciation of plant and equipment $23,000 Other factory overhead 7,100 4.5 Selling expenses: Sales salaries and commissions 82,600 12.5 Advertising 69,000 _ Miscellaneous selling expense 6,000 2 Administrative expenses: Office and officers salaries 54,300 6.5 Supplies 2,800 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 $195,200 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 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 5129.000 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 ' $|:| Cost of goods sold: Cost of goods sold |:| Gross prot $|:| Operating expenses: Selling expenses: Total selling expenses $|:| Administrative expenses: Budgeted Income Statement For the Year Ending December 31, 20Y9 $ Cost of goods sold: Cost of goods sold Gross profit Operating expenses: Selling 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. 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 Liabilities Current liabilities: Stockholders' Equity Total stockholders' equity $ Total liabilities and stockholders' equity