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, 2017, the following tentative trial balance as of December 31, 2016, is prepared by the Accounting Department of Webster Publishing Co.: Cash $117,700 Accounts Receivable 200,100 Finished Goods 42,000 Work in Process 28,000 Materials 46,000 Prepaid Expenses 3,400 Plant and Equipment 535,500 Accumulated DepreciationPlant and Equipment $230,300 Accounts Payable 192,000 Common Stock, $10 par 250,000 Retained Earnings 300,400 $972,700 $972,700 Factory output and sales for 2017 are expected to total 26,000 units of product, which are to be sold at $120 per unit. The quantities and costs of the inventories at December 31, 2017, 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: Depreciation of plant and equipment $26,000 _ Other factory overhead 8,100 5.5 Selling expenses: Sales salaries and commissions 93,300 15 Advertising 78,000 _ Miscellaneous selling expense 6,800 2.5 Administrative expenses: Office and officers salaries 61,400 7.5 Supplies 3,100 1 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 $283,100 on 2017 taxable income will be paid during 2017. 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 $145,000 cash in May. Required: Prepare a budgeted income statement for 2017. Prepare a budgeted balance sheet as of December 31, 2017.