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, 2049, the following tentative trial balance as of December 31, 2048, is prepared by the Accounting Department of Regina Soap Co.: Cash $108,300 Accounts Receivable 194,900 Finished Goods 40,900 Work in Process 27,300 Materials 44,800 Prepaid Expenses 3,300 Plant and Equipment 493,800 Accumulated Depreciation-Plant and Equipment $212,300 Accounts Payable 156,400 Common Stock, $10 par 300,000 Retained Earnings 244,600 $913,300 $913,300 Factory output and sales for 2049 are expected to total 25,000 units of product, which are to be sold at $120 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 (Total for Year) Variable (Per Unit Sold) Cost of goods manufactured and sold: Direct materials $30 Direct labor 9.5 Factory overhead: $25,000 Depreciation of plant and equipment Other factory overhead 7,800 5.5 Selling expenses: Sales salaries and commissions 89,800 15 75,000 Advertising Miscellaneous selling expense 6,500 2.5 Administrative expenses: Office and officers salaries 59,000 7.5 3,000 1 Supplies Miscellaneous administrative expense 1,600 2 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 $272,200 on 2049 taxable income will be paid during 2049. 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 $133,000 cash in May. Required: 1. Prepare a budgeted income statement for 2049. Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 2019 Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold 02 Gross profit Operating expenses: Selling expenses: Total selling expenses Administrative expenses: o Total administrative expenses Total operating expenses Income before income tax $ Duuyeler Dalance sueel December 31, 2019 Assets Current assets: Cash $ Accounts receivable Inventories: Common stock Plant and equipment X X Accounts payable Accounts payable Total current assets Property, plant, and equipment: Accounts receivable Accounts payable Total property, plant, and equipment Total assets Liabilities Current liabilities: Accounts payable Stockholders' Equity Accounts payable Accumulated depreciation Total stockholders' equity Total liabilities and stockholders' equity $