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, 2014, the following tentative trial balance as of December 31, 2013, is prepared by the Accounting Department of Regina Soap Co.: Cash $120,000 Accounts Receivable 213,600 Finished Goods 44,900 Work in Process 29,900 Materials 49,100 Prepaid Expenses 3,600 Plant and Equipment 608,400 Accumulated Depreciation-Plant and Equipment $261,600 Accounts Payable 198,100 Common Stock, $10 par 300,000 Retained Earnings 309,800 $1,069,500 $1,069,500 Factory output and sales for 2014 are expected to total 29,000 units of product, which are to be sold at $90 per unit. The quantities and costs of the inventories at December 31, 20Y4, 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 $23 Direct labor 7 Factory overhead: Depreciation of plant and equipment $29,000 Other factory overhead 9,000 Selling expenses Sales salaries and commissions 104,100 11.5 Advertising 87,000 Miscellaneous selling expense 7,500 Administrative expenses Office and officers salaries 68,400 5.5 Supplies 3,500 Miscellaneous administrative expense 1,BOD 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 $207, 100 on 2014 taxable income will be paid during 20Y4. 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 $164,000 cash in May. Required: 1. Prepare a budgeted income statement for 20Y4. Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 20Y4Cost of goods sold: $ - Cost of goods sold Gross profit Operating expenses: Selling expenses: S Total selling expenses Administrative expenses: S Total administrative expenses Total operating expenses Income before income tax 2. Prepare a budgeted balance sheet as of December 31, 20Y4. Regina Soap Co. Budgated Balance Sheet December 31, 20Y4 Assets Current assets: Inventories:Total current assets Property, plant, and equipment: S Total assets Liabilities Current liabilities: S Stockholders Equity S Total stockholders' equity Total liabilities and stockholders' equity