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 $114,300 Accounts Receivable 218,300 Finished Goods 45,800 Work in Process 30,600 Materials 50,200 Prepaid Expenses 3,700 562,400 Plant and Equipment Accumulated Depreciation-Plant and Equipment $241,800 Accounts Payable 169,100 Common Stock, $10 par 350,000 Retained Earnings 264,400 $1,025,300 $1,025,300 Factory output and sales for 2049 are expected to total 28,000 units of product, which are to be sold at $90 per unit. The quantities and costs of the inventories at December 31, 2089, 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 15-Homework Estimated costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) ost of goods manufactured and sold: Direct materials $23 Direct labor 7 Factory overhead: Depreciation of plant and equipment $28,000 ho Other factory overhead 8,700 4 Selling expenses: Sales salaries and commissions 100,500 11.5 84,000 Advertising Miscellaneous selling expense 7,300 2 Administrative expenses: Office and officers salaries 66,100 5.5 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 $199,900 on 2049 taxable income will be paid during 2049. Regular quarterly cash dividends of si 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 $152,000 cash in May, $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 $152,000 cash in May. Required: 1. Prepare a budgeted income statement for 2049. Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 20Y9 Cost of goods sold: Cost of goods sold Gross profit Operating expenses: Selling expenses: $ Total selling expenses Administrative expenses: Total selling expenses Administrative expenses: Total administrative expenses Total operating expenses Income before income tax 2. Prepare a budgeted balance sheet as of December 31, 20Y9. Regina Soap Co. Budgeted Balance Sheet December 31, 2019 Assets Current assets: Inventories: Total current assets Property, plant, and equipment: SI Total property, plant, and equipment Total assets Liabilities Current liabilities: Stockholders' Equity Total current assets Property, plant, and equipment: Total property, plant, and equipment Total assets Liabilities Current liabilities: Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity