= Homework: CH 7 HW Question 7, PM7-40A (similar to) Part 1 of 2 HW Score: 0%, 0 of 10 points O Points: 0 of 3 Save Sharpe Company has the following post-closing trial balance on December 31, 2024 E: (Click the icon to view the post-closing trial balance.) The company's accounting department has gathered the following budgeting information for the first quarter of 2025: E: (Click the icon to view the budgeting information.) Additional information: a. Direct materials purchases are paid 60% in the quarter purchased and 40% in the next quarter. b. Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred. Accounts payable at December 31, 2024 are paid in the first quarter of 2025. Read the requirements. Data table c. CD Requirement 1. Prepare Sharpe Company's budgeted income statement for the first quarter of 2025. Sharpe Company Budgeted Income Statement Data table For the Quarter Ended March 31, 2025 Sharpe Company Post-Closing Trial Balance December 31, 2024 Debit Account Credit Sales Revenue Cash $ 45,000 $ 307,500 Cost of Goods Sold Accounts Receivable 22.800 31,000 Gross Profit 8,000 10.500 25,400 Selling and Administrative Expenses Income before Income Taxes 145,000 2,500 Raw Materials Inventory Finished Goods Inventory Equipment Accumulated Depreciation Accounts Payable Common Stock Income Tax Expense $ 30,000 1,500 Net Income 1.400 15,200 71,200 50,000 151,000 Budgeted total sales, all on account Budgeted direct materials to be purchased and used Budgeted direct labor cost Budgeted manufacturing overhead costs: Variable manufacturing overhead Depreciation Insurance and property taxes Budgeted cost of goods sold Budgeted selling and administrative expenses: Salaries expense Rent expense Insurance expense Depreciation expense Supplies expense Budgeted cash receipts from customers Budgeted income tax expense Budgeted purchase and payment for capital expenditures (additional equipment) Retained Earnings 8,000 $ 246,200 $ Totals 246,200 4.500 1.700 - X 600 Requirements 15,375 262,300 46,000 1. Prepare Sharpe Company's budgeted income statement for the first quarter of 2025 2. Prepare Sharpe Company's budgeted balance sheet as of March 31, 2025. 40,000 Print Done Print Done Help me solve this Etext pages Get md Check