could you please put the steps to this question, thank you :)

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, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Mesa Publishing Co.:

Cash	$ 26,000
Accounts Receivable	23,800
Finished Goods	16,900
Work in Process	4,200
Materials	6,400
Prepaid Expenses	600
Plant and Equipment	82,000
Accumulated DepreciationPlant and Equipment			$ 32,000
Accounts Payable			14,800
Common Stock, $1.50 par			30,000
Retained Earnings			83,100
	$159,900		$159,900

Factory output and sales for 20Y9 are expected to total 3,800 units of product, which are to be sold at $120 per unit. The quantities and costs of the inventories at December 31, 20Y9, 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	_		$30.00
Direct labor	_		8.40
Factory overhead:
Depreciation of plant and equipment	$ 4,000		_
Other factory overhead	1,400		4.80
Selling expenses:
Sales salaries and commissions	12,800		13.50
Advertising	13,200		_
Miscellaneous selling expense	1,000		2.50
Administrative expenses:
Office and officers salaries	7,800		7.00
Supplies	500		1.20
Miscellaneous administrative expense	400		2.40

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 $35,000 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of $0.20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $22,000 cash in May.

Required: 1. Prepare a budgeted income statement for 20Y9 Mesa Publishing Co. Budgeted Income Statement For the Year Ending December 31, 20Y9 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 Supplies Miscellaneous administrative expense Total administrative expenses Total operating expenses Income before income tax Income tax expense Net income