I. Barrett Company has completed all operating budgets other the income statement for 2020. Selected data from these budgets follows. Sales revenue: $300,000 Purchases of raw materials: $145,000 Ending inventory of raw materials: $15,000 Direct labor: $40,000 Interest expense: $1,000 Principal payment on note: $2,000 Dividends declared: $2,000 Income tax rate: 30% Manufacturing overhead: $73,000, including $3,000 of depreciation expense Selling and administrative expenses: $36,000 including depreciation expenses of $1,000 Other information: Assume that the number of units produced equals the number sold. Year-end accounts receivable: 4% of 2020 sales. Year-end accounts payable: 50% of ending inventory of raw materials. Interest, direct labor, manufacturing overhead, and selling and administrative expenses other than depreciation are paid as incurred. Dividends declared and income taxes for 2020 will not be paid until 2021. BARRETT COMPANY Balance Sheet December 31, 2019 Assets Cash $20,000 Raw materials inventory $10,000 Equipment $40,000 Less: Accumulated depreciation $ 4,000 $36,000 Total assets $66,000 Liabilities and Stockholders Equity Accounts payable $ 5,000 Notes payable $22,000 Total liabilities $27,000 Common stock $25,000 Retained earnings $14,000 $39,000 Total liabilities and stockholders equity $66,000 Instructions: (a) Calculate budgeted cost of goods sold. (b) Prepare a budgeted income statement for the year ending December 31, 2020. (c) Prepare a budgeted balance sheet as of December 31, 2020