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 $117,000 Accounts Receivable 231,700 Finished Goods 48,700 Work in Process 32,400 Materials 53,300 Prepaid Expenses 3,900 Plant and Equipment 603,700 Accumulated DepreciationPlant and Equipment $259,600 Accounts Payable 207,100 Common Stock, $10 par 300,000 Retained Earnings 324,000 $1,090,700 $1,090,700

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, 2043, is prepared by the Accounting Department of Regina Soap Co.: Cash $117,000 Accounts Receivable 231,700 Finished Goods 48,700 Work in Process 32,400 Materials 53,300 Prepaid Expenses 3,900 Plant and Equipment 603,700 Accumulated Depreciation-Plant and Equipment $259,600 Accounts Payable 207,100 Common Stock, $10 par 300,000 Retained Earnings 324,000 $1,090,700 $1,090,700 Factory output and sales for 20Y4 are expected to total 29,000 units of product, which are to be sold at $90 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 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 $ 29,000 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 $29,000 Other factory overhead 9,000 4 Selling expenses: Sales salaries and commissions 104,100 11.5 Advertising 87,000 Miscellaneous selling expense 7,500 2 Administrative expenses: Office and officers salaries 68,400 5.5 Supplies 3,500 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 $207,100 on 2014 taxable income will be paid during 2074. 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 $163,000 cash in May. Required: 1. Prepare a budgeted income statement for 20Y4. Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 2014 Sales 2 610 000 Regina Soap Co. Budgeted Balance Sheet December 31, 2014 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 Less accumulated depreciation Total assets Liabilities Current liabilities: Accounts payable Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Check My Work 3 more Check My Work uses remaining