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, 20Y8, is prepared by the Accounting Department of Regina Soap Co.: Cash $109,300 Accounts Receivable 209,900 Finished Goods 44,100 Work in Process 29,400 Materials 48,300 Prepaid Expenses 3,600 Plant and Equipment 529,000 Accumulated Depreciation--Plant and Equipment $227,500 Accounts Payable 154,500 Common Stock, $10 par 350,000 Retained Earnings 241,600 $973,600 $973,600 Factory output and sales for 2049 are expected to total 26,000 units of product, which are to be sold at $110 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 $28 8.5 Estimated costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials Direct labor Factory overhead: Depreciation of plant and equipment $26,000 Other factory overhead 8,100 Selling expenses: Sales salaries and commissions 93,300 Advertising 78,000 Miscellaneous selling expense 6,800 Administrative expenses: Office and officers salaries 61,400 Supplies 3,100 Miscellaneous administrative expense 1,600 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 $251,900 on 2049 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 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be 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 $251,900 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 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $143,000 cash in May. Required: 1. Prepare a budgeted income statement for 2049. Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 2049 Sales 2,860,000 Cost of goods sold: Direct materials 728.000 Direct labor 221.000 Factory overhead 161,100 1.113, 100 Cost of goods sold $ 1,746,900 Gross profit Operating expenses: Selling expenses: Sales salaries and commissions 457,300 Advertising 78,000 Previous Operating expenses: Selling expenses: Sales salaries and commissions 457.300 Advertising 78,000 Miscellaneous selling expense 58.800 594,100 Total selling expenses Administrative expenses: office and officers salaries 243.400 Supplies 29,100 Miscellaneous administrative expense 40,600 Total administrative expenses 313,100 Total operating expenses 907,200 Income before income tax 839.700 Income tax expense 251,900 Net Income 587,800 Regina Soap Co. Budgeted Balance Sheet December 31, 2019 Assets Current assets: Cash 414,100 Accounts receivable 209,900 Inventories: Finished goods 44,100 29,400 Work in process Materials 48,300 121,800 Prepaid expenses 3,600 Total current assets Property, plant, and equipment: Plant and equipment $ 672,000 Accumulated depreciation Total property, plant, and equipment Total assets $ 1,193,900 Llabilities