Please solve this budgeted income statement and balance sheet.

Budgeted income statement and balance sheet As a pre liminary to requesting budg et estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2017, th e following t entative trial baan e as of December 31, 2016, is prepared by the Accounting Department of Mesa Publishing Co.: Cash ..................................................... $ 26,000 23,800 Accounts Receivable.................................... , Finished Goods ................................................... 16,900 4,200 Work in Process .................................................. Materials .................................... , . .... , , Prepaid Expenses ...................................... 6,400 600 82,000 Plant and Equipment ...................,.....,....,.... , Accumulated Depreciation-Plant and Equipment................ , .. $ 32,000 14,800 Accounts Payable ............................,....... Common Stock, $1.50 par.................... , .. , ,.., ,., 30,000 Retained Earnings ...........................................,.. $1 59,900 83,1 00 $1 59,900 Factory output and sales for 2017 ar e expecte d to total 3,800 units of product, which ar e to be sold at $120 per unit. The quantities and costs of the inventories at De cember 3l, 2017, are expect e d to remain uncha ng ed from th e bal anc es at th e b e ginning of the year . Budg et e stimates of manufacturing costs and operating summarized as follows: e xpenses for the year are 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 13.50 Selling expenses: Sales salaries and commissions........................... 1 2 ,800 Advertising ............................................. 13,2 00 Miscellaneous selling expense ........................... Administrative expenses: 1 ,000 2.50 Office and officers salaries ............................... 7 ,800 Supplies..................................... :.......... 500 7.00 1.2 0 Miscellaneous administrative expense ................... . 400 2.40 Balances of accounts r eceivable , pre paid expenses, and accounts payable at th e end of the ye ar are not expected to differ significantly from the beginning bala nces. Federal income tax of $35,000 on 2017 taxable income will be paid during 2017. Regular quar terly 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 anticipat ed that fixed assets will be purchased for $22,000 c ash in May. fr.s:trnctrons 1. Prepare a budgeted income statement for 2017. 2. Prepare a budgeted balance sheet as of December 31, 2017, with supporting calculations. 3. After preparing the budgeted statements you are asked to present and explain your findings to management. In a Word or PDF document, explain how you would explain the "why" and "how" to the group keeping in mind some do not have an accounting