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, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.:

Cash	$107,300
Accounts Receivable	188,800
Finished Goods	39,600
Work in Process	26,400
Materials	43,400
Prepaid Expenses	3,200
Plant and Equipment	509,700
Accumulated DepreciationPlant and Equipment			$219,200
Accounts Payable			175,200
Common Stock, $10 par			250,000
Retained Earnings			274,000
	$918,400		$918,400

Factory output and sales for 20Y9 are expected to total 25,000 units of product, which are to be sold at $90 per unit. The quantities and costs of the inventories at December 31, 20Y9, 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	_		$23
Direct labor	_		7
Factory overhead:
Depreciation of plant and equipment	$25,000		_
Other factory overhead	7,800		4
Selling expenses:
Sales salaries and commissions	89,800		11.5
Advertising	75,000		_
Miscellaneous selling expense	6,500		2
Administrative expenses:
Office and officers salaries	59,000		5.5
Supplies	3,000		1
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 $178,400 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 25,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $138,000 cash in May.

Required:

1. Prepare a budgeted income statement for 20Y9.

..SELLEL 4T 125 12:. recard sparers to UT: Rats GER Malate - Dp arrara Fire LUT. SELURI Pul . ..VI DAT PE Etki Carrer St, 10-03 C. .. Taasturity as an acting a UN VET ER od alarma xid Varsele Tabul For Year? (Per Unit Sald) lar Caranya: Srl ng AT : 13 AUT upya SAYI PERETS: I con cock a ng pools , NYINY - arter war mora paha Hotel con ancorder 1914sehin Hari 2. Pres s P ortatil-23-. Regina Scap a Budget W ar 1. Tarp Werter Bacard Chart Saniert For the Tuer Erdry Danber 31, 2012 Paclars had Opra Advert VIL GS Acec I Uau...r . S acks, wala ya ITULE. TULIN : I Ty L .L. SUL 2. Prepare a budgeted balance sheet as of December 31, 2049. Regina Soap Co. Budgeted Balance Sheet December 31, 2019 Assets Current assets: Cash Accounts receivable 188,800 Inventories: Finished goods $ 39,600 26,400 Work in process Materials 43,400 Prepaid expenses Total current assets Property, plant, and equipment: Plant and equipment Accumulated depreciation Total property, plant, and equipment Total assets Liabilities Current liabilities: Accounts payable $ 175,200 Stockholders' Equity Common stock $ 250,000 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity