Budgeted Income Statement and Balance Sheet - Webster Publishing Co.:

Budgeted Income Statement andBalance Sheet As apreliminaryto requesting budget estimates of sales, co and expenses for thefiscal year beginning January 1,2017 the following tentative trial balanceas ofDecember31, 2016, is preparedbythe Accounting Department of Webster Publishing Co $103,400 Cash Accounts Receivable 84 100 Finished Goods 38,700 Work in Process 25,800 Materials 2,300 Prepaid Expenses 3,100 Plant and Equipment 511,800 $220,100 Accumulated Depreciation Plant and Equipment Accounts Payable 151,700 Common Stock, $10 300,000 par Retained Earnings 237,400 $909,200 $909,200 Factory output and salesfor2017 areexpectedto total 25,000 units of product, which are to be sold at $120 per unit. The quantities and costs ofthe inventories at December 31, 2017 are expected to remain unchanged from the balances at the beginning ofthe year. Budget estimates of costs and operating expenses for the year ares as follows summarized Estimated Costs and Expenses Fixed Variable Total for Year (Per Unit Sold) Cost of goods manufactured andsold $30 Direct materials Direct labor 9.5 Factory ov $25,000 Depreciation ofplant andequipment Other factory overhead 7,800 5.5 Selling expenses Sales salaries andcommissions 89,800 15 Advertising 75,000 Miscellaneous selling expense 6,500 2.5 Administrative expenses 59,000 office and officers salaries 7.5 upplies 3,000 Miscellaneous administrative expense 1,600 Balances of accounts receivable, prepaidexpenses, and accounts payable atthe end of theyeararenotexpectedto differ significantly from the beginning balances.Federal income tax of$272,200 on 2017 taxable income will be paid during 2017 Regular quarterly cash dividends of $1 share are expectedto be declaredandpaidin March, June, September, and December on 30,000 shares of common stock outstanding. It is ticipated that fixedassets will be for $138,000 cash in May. ant Required Prepare a budgetedincome statement for2017. Prepare a budgeted balance sheet as of December 31,2017