PR 22-5A Budgeted income statement and balance sheet OBJ. 4,5 As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2017, the following tentative trial balance as of December 31, 2016, is prepared by the Accounting Department of Regina Soap Co.: Cash Accounts Receivable.. Finished Goods $ 85,000 125,600 69,300 Work in Process 32,500 Materials 48,900 Prepaid Expenses 2,600 Plant and Equipment 325,000 Accumulated Depreciation-Plant and Equipment $156,200 Accounts Payable 62,000 Common Stock, $10 par 180,000 Retained Earnings. 290,700 $688,900 $688,900 Factory output and sales for 2017 are expected to total 200,000 units of product, which are to be sold at $5.00 per unit. The quantities and costs of the inventories at December 31, 2017, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Estimated Costs and Expenses Fixed Variable (Total for Year) (Per Unit Sold) Cost of goods manufactured and sold: Direct materials.. Direct labor... Factory overhead: Depreciation of plant and equipment... Other factory overhead.... Selling expenses: Sales salaries and commissions. Advertising..... Miscellaneous selling expense Administrative expenses: Office and officers salaries. Supplies....... $1.10 0.65 $40,000 12,000 0.40 46,000 0.45 64,000 - 6,000 0.25 72,400 0.12 5,000 0.10 4,000 0.05 Miscellaneous administrative expense. Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $30,000 on 2017 taxable income will be paid during 2017. Regular quar- terly cash dividends of $0.15 per share are expected to be declared and paid in March, June, September, and December on 18,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $75,000 cash in May. Instructions 1. Prepare a budgeted income statement for 2017. 2. Prepare a budgeted balance sheet as of December 31, 2017, with supporting calculations. Question 2 Regina Soap Co. Budgeted Balance Sheet December 31, 2021 Current assets: Cash ASSETS Accounts receivable Inventories: Finished goods Work in process Materials Prepaid expenses Total current assets Property, plant, and equipment: Plant and equipment Less accumulated depreciation Total assets LIABILITIES Current liabilities: Accounts payable STOCKHOLDERS' EQUITY Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Insert the approproate amount.