P22-40A Preparing a financial budget-budgeted income statement and balance sheet Bradley Company has the following post-closing trial balance on December 31 2018: BRADLEY COMPANY Post-Closing Trial Balance December 31, 2018 Account Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Equipment Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals Debit 15,000 23,200 11,000 25,900 125,000 Credit 35,000 13,600 150,000 1,500 $ 200,100 200,100 The company's accounting department has gathered the following budgeting information for the first quarter of 2019: Budgeted total sales, all on account Budgeted direct materials to be purchased and used Budgeted direct labor cost Budgeted manufacturing overhead costs: 305,000 32,000 12,500 Variable manufacturing overhead Depreciation Insurance and property taxes 2,100 1,300 1,350 72,000 Budgeted cost of goods sold Budgeted selling and administrative expenses: Salaries expense Rent expense Insurance expense Depreciation expense Supplies expense 7,000 2,000 1,100 550 15,250 263,500 41,000 Budgeted cash receipts from customers Budgeted income tax expense Budgeted purchase and payment for capital expenditures (additional equipment) 43,000 Additional information: Direct materials purchases are paid 70% in the quarter purchased and 30% in the next quarter. b. Direct labor, manufacturing overhead, selling and administrative costs, and income tax expense are paid in the quarter incurred. c. Accounts payable at December 31, 2018 are paid in the first quarter of 2019. Requirements 1. Prepare Bradley Company's budgeted income statement for the first quarter of 2019 2. Prepare Bradley Company's budgeted balance sheet as of March 31, 2019