Prepare budgeted cost of goods sold. income statement, and balance sheet 2. (LO 3, 4) Barrett Company has completed all operating budgets other than the income stateme for 2020. Selected data from these budgets follow. Sales: $300.000 Purchases of raw materials: $145,000 Ending inventory of raw materials: $15,000 Direct labor: $40,000 Manufacturing overhead: $73,000, including $3,000 of depreciation expense Selling and administrative expenses: $36,000 including depreciation expense of $1,000 Interest expense: $1,000 Principal payment on note: $2,000 Dividends declared: $2,000 Income tax rate: 30% 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 oth than depreciation are paid as incurred. Dividends declared and income taxes for 2020 will not be paid until 2021. a26 Barrett Company Balance Sheet December 31, 2019 Assets $20,000 10,000 30.000 Current assets Cash Raw materials inventory Total current assets Property, plant, and equipment Equipment Less: Accumulated depreciation Total assets $40,000 4,000 36,000 $66,000 Liabilities and Stockholders' Equity $ 5,000 22.000 Liabilities Accounts payable Notes payable Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $27,00 $27,000 25,000 14.000 39,000 $66,000 Instructions a. Calculate budgeted cost of goods sold. b. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020