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I am very confused about the last parts of this. Please explain.

Additional information: Little Company has the following post-closing trial balance on December 31, 2018: (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 2019: (Click the icon to view the budget information.) Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount. Read the requirements -X Requirements Requirement 1. Prepare a budgeted income statement for the quarter ended March 31, 2019 1. Prepare a budgeted income statement for the quarter ended March 31, 2019. 2. Prepare a budgeted balance sheet as of March 31, 2019. - Little Company Budgeted Income Statement For the Quarter Ended March 31, 2019 Sales Revenue Data table Data table $ 121,700 60,850 60,850 $ 121,700 60,300 60,850 Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Commissions Expense Salaries Expense Rent Expense Depreciation Expense $ 6,085 Credit 5,000 4,500 Cash 6,085 400 Little Company Post-Closing Trial Balance December 31, 2018 Account Debit $ 22,000 Accounts Receivable 21,000 Merchandise Inventory 14,000 Prepaid Insurance 2,500 Equipment and Fixtures 50,000 Accumulated Depreciation $ Accounts Payable Salaries and Commissions Payable Common Stock Budgeted total sales, all on account Budgeted purchases of merchandise inventory, all on account Budgeted cost of goods sold Budgeted selling and administrative expenses: Commissions expense Salaries expense Rent expense Depreciation expense Insurance expense Budgeted cash receipts from customers Budgeted cash payments for merchandise inventory Budgeted cash payments for salaries and commissions Budgeted income tax expense 5,000 4,500 Insurance Expense 200 400 16.185 200 Total Selling and Administrative Expenses Operating Income (Loss) Income Tax Expense 44,665 16,000 4,500 25,000 6.900 126,340 67,850 14,544 4,500 Net Income (Loss) $ 40,165 Requirement 2. Prepare a budgeted balance sheet as of March 31, 2019. 21,000 40,600 Retained Earnings $ 109,500 $ 109,500 Totals Little Company Budgeted Balance Sheet March 31, 2019 Print Done Assets Current Assets Print Done Cash A---..-..--..-LI- Requirement 2. Prepare a budgeted balance sheet as of March 31, 2019. Little Company Budgeted Balance Sheet March 31, 2019 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Property, Plant, and Equipment Equipment and Fixtures Less: Accumulated Depreciation Total Assets 50000 16000