Budgeted Income Statement and Balance Sheet sa preliminary to requesting budget estimates of sales, costs and expenses for the cal year beginning January 1, 2019, the following tentative trance of 31, 2015, prepared by the Accounting Department of Regina Sopo $110,100 Accounts Receivable 216,900 Finished Goods 45,500 Work in Process 30,400 Materials 49.900 Prepaid Expenses 3,700 Plant and Equipment 552,700 Accumulated Depreciation-and Equipment $237,700 Accounts Payable 203,400 Common Stock, $10 per 250,000 Retained Earnings 318,100 $1,009,200 51.009,200 actory output and sales for 2015 are expected to total 27.000 units of product, which are to be sold at $110 per unit. The quantities and costs of the inventores em 1209, we 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 Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials $28 Direct labor 8.5 Factory overhead: Depreciation of plant and equipment $27.000 other factory overhead 8,400 Selling expenses: Sales salaries and commissions 96.900 14 Advertising 81,000 Miscellaneous selling expense 7.000 Adrnistrative expenses ome and officers salaries 63.700 7 Supplies 3,200 1 Miscellaneous administrative expense 1,700 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 5261,600 on 2049 taxable income will be paid during 2049. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March June, September and Decemberon 5,000 shares of common stock outstanding. It is antipated that fixed assets will be purchased for $149,000 cash in May. Regina Soap Co. Budgeted Income Statement For the Year Ending December 31, 2019 Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Operating expenses: Selling expenses: Sales salaries and commissions Advertising Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers salaries QUO DOO Supplies Miscellaneous administrative expense Total administrative expenses Total operating expenses Income before income tax Income tax expense V Net income