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 Accounts Receivable Finished Goods Work in Process Materials Prepaid Expenses Plant and Equipment Accumulated Depreciation-Plant and Equipment Accounts Payable Common Stock, $10 par Retained Earnings $106,500 207,700 43,600 29,100 47,800 3,500 498,400 $214,300 164,700 300,000 257,600 5936,600 5936,600 Factory output and sales for 20Y4 are expected to total 25,000 units of product, which are to be sold at $110 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 Ye) (Per Unit Sold) Cost of goods manufactured and sold Direct materials Direct labor Factory overhead $28 8.5 Depreciation of plant and equipment $25,000 Other factory overhead 7,800 Selling expenses Sales salaries and commissions Advertising Miscellaneous selling expense 89,800 75,000 6,500 14 Administrative expenses: Office and officers salaries Supplies Miscellaneous administrative expense 59,000 3,000 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 $242,200 on 20Y4 taxable income will be paid during 20Y4. 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 $135,000 cash in May 1. Prepare a budgeted income statement for 20Y4 Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 20Y4 Cost of goods sold: Cost of goods sold Gross profit Operating expenses: Selling expanses: 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, 20Y4 Regina Soap Co Budgeted Balance Sheet December 31, 20Y4 Assets Current assets Inventories Total current assets Property, plant, and equipment: Total assets Liabilities Current liabilities Stockholders Equity Total stockholders" equity Total liabilities and stockholders' equity