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, 2019, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.: Cash $109,200 Accounts Receivable 198,700 Finished Goods 41,700 Work in Process 27,800 Materials 45,700 Prepaid Expenses 3,400 Plant and Equipment 515,400 Accumulated Depreciation-Plant and Equipment $221,600 Accounts Payable 183,400 Common Stock, $10 par 250,000 Retained Earnings 286,900 $941,900 $941,900 Factory output and sales for 2019 are expected to total 25,000 units of product, which are to be sold at $100 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 $25 Direct labor 8 Factory overhead: Depreciation of plant and equipment $25,000 - Other factory overhead 7,800 4.5 Selling expenses: Sales salaries and commissions 89,800 12.5 Advertising 75,000 - Miscellaneous selling expense 6,500 2 Administrative expenses: Office and officers salaries 59,000 6.5 Supplies 3,000 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 $212,200 on 2019 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 $139,000 cash in May.1. Prepare a budgeted income statement for 2019. Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 20Y9 Sales Cost of goods sold: Direct materials Direct labor Factory overhead E Cost of goods sold Gross profit Operating expenses: Selling expenses: Sales salaries and commissions Advertising V Miscellaneous selling expense V Total selling expenses Administrative expenses: Office and officers salaries Supplies Miscellaneous administrative expense V Total administrative expenses Total operating expenses Income before income tax Income tax expense Net income2. Prepare a budgeted balance sheet as of December 31, 2019. Regina Soap Co. Budgeted Balance Sheet December 31, 20Y9 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 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