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, 20Y4, the following tentative trial balance as of December 31, 20Y3, is prepared by the Accounting Department of Regina Soap Co.:

Cash	$119,200
Accounts Receivable	221,700
Finished Goods	46,600
Work in Process	31,000
Materials	51,000
Prepaid Expenses	3,800
Plant and Equipment	567,400
Accumulated DepreciationPlant and Equipment			$244,000
Accounts Payable			174,200
Common Stock, $10 par			350,000
Retained Earnings			272,500
	$1,040,700		$1,040,700

Factory output and sales for 20Y4 are expected to total 28,000 units of product, which are to be sold at $110 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 (Total for Year)		Variable (Per Unit Sold)
Cost of goods manufactured and sold:
Direct materials	_		$28
Direct labor	_		8.5
Factory overhead:
Depreciation of plant and equipment	$28,000		_
Other factory overhead	8,700		5
Selling expenses:
Sales salaries and commissions	100,500		14
Advertising	84,000		_
Miscellaneous selling expense	7,300		2
Administrative expenses:
Office and officers salaries	66,100		7
Supplies	3,400		1
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 $271,300 on 20Y4 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 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $153,000 cash in May.

Required:

1. Prepare a budgeted income statement for 20Y4.

Regina Soap Co.
Budgeted Income Statement
For the Year Ending December 31, 20Y4
			$fill in the blank c858f0fdbfc7f87_2
Cost of goods sold:
		$fill in the blank c858f0fdbfc7f87_4
		fill in the blank c858f0fdbfc7f87_6
		fill in the blank c858f0fdbfc7f87_8
Cost of goods sold			fill in the blank c858f0fdbfc7f87_9
Gross profit			$fill in the blank c858f0fdbfc7f87_10
Operating expenses:
Selling expenses:
	$fill in the blank c858f0fdbfc7f87_12
	fill in the blank c858f0fdbfc7f87_14
	fill in the blank c858f0fdbfc7f87_16
Total selling expenses		$fill in the blank c858f0fdbfc7f87_17
Administrative expenses:
	$fill in the blank c858f0fdbfc7f87_19
	fill in the blank c858f0fdbfc7f87_21
	fill in the blank c858f0fdbfc7f87_23
Total administrative expenses		fill in the blank c858f0fdbfc7f87_24
Total operating expenses			fill in the blank c858f0fdbfc7f87_25
Income before income tax			$fill in the blank c858f0fdbfc7f87_26
			fill in the blank c858f0fdbfc7f87_28
			$fill in the blank c858f0fdbfc7f87_30

2. Prepare a budgeted balance sheet as of December 31, 20Y4.

Regina Soap Co. Budgeted Balance Sheet December 31, 20Y4
Assets
Current assets:
		$fill in the blank 9ce61efa7017019_2
		fill in the blank 9ce61efa7017019_4
Inventories:
	$fill in the blank 9ce61efa7017019_6
	fill in the blank 9ce61efa7017019_8
	fill in the blank 9ce61efa7017019_10	fill in the blank 9ce61efa7017019_11
		fill in the blank 9ce61efa7017019_13
Total current assets			fill in the blank 9ce61efa7017019_14
Property, plant, and equipment:
		$fill in the blank 9ce61efa7017019_16
		fill in the blank 9ce61efa7017019_18	fill in the blank 9ce61efa7017019_19
Total assets			$fill in the blank 9ce61efa7017019_20
Liabilities
Current liabilities:
			$fill in the blank 9ce61efa7017019_22
Stockholders' Equity
		$fill in the blank 9ce61efa7017019_24
		fill in the blank 9ce61efa7017019_26
Total stockholders equity			fill in the blank 9ce61efa7017019_27
Total liabilities and stockholders equity			$fill in the blank 9ce61efa7017019_28