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 2073, is prepared by the Accounting Department of Regina Soap Co: Cash $102,000 Accounts Receivable 183,600 Finished Goods 38,600 Work in Process 25,700 Materials 42,200 Prepaid Expenses plant and Equipment 3,100 445,800 Accumulated Deprecation Plant and Equipment 5193,000 Accounts Payable 136,900 Common stock, 510 par 300,000 Retained Earnings 214,100 $544,000 5844,000 Factory output and sales for 2014 we expected to total 23,000 units of product, which are to be sold at $90 per unit. The quantities and costs of the inventores at December 20YA, 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 Check My Work Previot 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 $23,000 Other factory overhead 7,100 Selling expenses Sales salaries and commissions 82,600 11.5 69,000 Advertising Miscellaneous selling expense Administrative expenses Office and officers salaries 6,000 2 54,300 5.5 Supplies 2,800 1 Miscellaneous Ministrative and 1000 Check My Work 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 $164,200 on 2014 taxable income will be paid during 2014. 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 feed assets will be purchased for $121,000 cash in May. Requiredt 1. Prepare a budgeted income statement for 2074 Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 2014 Sales Cost of goods Direct materials Direct labor Lactory overhead Que OU Cost of goods to Groot Operating expens Selling en Gross profit Operating expenses Selling expenses Sales salaries and commissions Advertising Miscellaneous selling expense Total selling expenses Administrative expenses Ollice and officers salaries . Supplies Miscellaneous administrative expense Total administrative expenses o Total operating expenses Income before income tax Income tax expense doo Net income OW information from the pected tales cost of goods and selling and administrative expenses Oud My Work Print 2. Prepare a budgeted balance sheet as of December 31, 2014 Regina Soap Co. Budgeted Balance Sheet December 31, 2044 Assets Current assets: Cash Accounts receivable Inventories: Finished goods Work in process II I Materials Prepaid expenses Total current assets Property, plant, and equipment: Plant and equipment Laccumulated depreciation TO Prepaid expenses Total current assets Property, plant, and equipment: Plant and equipment Less accumulated depreciation Total assets Liabilities Current liabilities: Accounts payable Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total abilities and stockholders' equity