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, 2019, the following tentative trial balance as of December 31, 2078, is prepared by the Accounting Department of Regina Soap Co! Cash $110,000 Accounts Receivable 216,700 Finished Goods 45,500 Work in Process 30,300 Materials 49,800 Prepaid Expenses 3,700 Plant and Equipment 533,500 Accumulated Depreciation--Plant and Equipment $229,400 Accounts Payable 198,900 Common Stock, $10 par 250,000 Retained Earnings 311,200 $989,500 $989,500 Factory output and sales for 2079 are expected to total 27,000 units of product, which are to be sold at $100 per unit. The quantities and costs of the inventories at December 31, 2019, are expected to remain unchanged from the balance at the beginning of the year. widget estimates of manufacturing conts 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 125 (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials $25 Direct labor 8 Factory overhead: Depreciation of plant and equipment $27,000 Other factory overhead 8,400 4.5 Selling expenses: Sales salaries and commissions 96,900 12.5 Advertising 81,000 Miscellaneous selling expense 7,000 2 Administrative expenses Office and officers salaries 63,700 6.5 Supplies 3,200 1 Miscellaneous administrative expense 1,700 1.5 Balance of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning batances. Federal income tax of $229,200 on 2049 taxable income will be paid during 2009. 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 need assets will be purchased for $144,000 cash in May. Required: 1. Prepare a budgeted income statement for 2019 Regina Soap Co. Budgeted Income Statement For the Year Ending December 21, 2019 Budgeted Income Statement For the Year Ending December 31, 2019 Cost of goods sold: Cost of goods sold Gross profit Operating expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total operating expenses Income before income tax Total administrative expenses Total operating expenses Income before income tax 2. Prepare a budgeted balance sheet as of December 31, 2019, Regina Soap Co. Budgeted Balance Sheet December 31, 2019 Assets Current assets: Inventories: Total current assets Property, plant, and equipment: Inventories: 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