Prepared a budgeted income statement. Note: Round "Cost per unit" to 2 decimal places. Do not round any other intermediate calculations. Enter final answers to the nearest whole dollar. \begin{tabular}{|c|l|l|} \hline Revenue: & & \\ \hline Sales revenue & & \\ \hline Other income & & \\ \hline Total revenue & & \\ \hline Expenses: & & \\ \hline Cost of goods manufactured and sold: & & \\ \hline Materials & & \\ \hline Direct labor & & \\ \hline Variable overhead & & \\ \hline Fixed overhead & & \\ \hline Total current manufacturing costs & & \\ \hline Beginning inventory & & \\ \hline Total cost of goods manufactured & & \\ \hline Ending inventory & & \\ \hline Marketing: & & \\ \hline Salaries & & \\ \hline Commissions & & \\ \hline Promotions and advertising & & \\ \hline Administrative: & & \\ \hline Salaries & & \\ \hline Travel & & \\ \hline Office costs & & \\ \hline Income taxes (credit) & & \\ \hline Total expenses & & \\ \hline Operating profit (loss) & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{ INVERNESS MANUFACTURING } \\ \hline Cash & $7,000 & \\ \hline Accounts receivable & 248,000 & \\ \hline Inventory (January 1, Year 2) & 152,000 & \\ \hline Plant and equipment & 406,000 & \\ \hline Accumulated depreciation & & $131,000 \\ \hline Accounts payable & & 143,000 \\ \hline Notes payable (due within one year) & & 158,000 \\ \hline Accrued payables & & 77,750 \\ \hline Common stock & & 218,000 \\ \hline Retained earnings & & 313,600 \\ \hline Sales revenue & & 1,880,000 \\ \hline Other income & & 35,000 \\ \hline \multicolumn{3}{|l|}{ Manufacturing costs } \\ \hline Materials & 647,000 & \\ \hline Direct labor & 662,000 & \\ \hline Variable overhead & 398,000 & \\ \hline Depreciation & 23,000 & \\ \hline Other fixed overhead & 25,250 & \\ \hline \multicolumn{3}{|l|}{ Marketing } \\ \hline Salaries & 49,600 & \\ \hline Commissions & 68,000 & \\ \hline Promotion and advertising & 153,000 & \\ \hline \multicolumn{3}{|l|}{ Administrative } \\ \hline Salaries & 56,000 & \\ \hline Travel & 11,500 & \\ \hline Office costs & 31,000 & \\ \hline Income taxes & - & \\ \hline \multirow[t]{2}{*}{ Dividends } & 19,000 & \\ \hline & 2,956,350 & 2,956,350 \\ \hline \end{tabular} Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 229,000 units, and planned sales volume is 208,000 units. Sales and production volume was 158,000 units last year. The company uses a fullabsorption costing and FIFO inventory system and is subject to a 20 percent income tax rate. The actual income statement for last year follows: The management at Inverness Manufacturing feels confident about the company's prospect in the current year (year 2). Sales in the first quarter were one-third ahead of last year, and the sales department predicted that this rate would continue throughout the entire year. The controller asked the budget team to prepare a draft forecast for the year and to analyze the differences from last year's results. They decided to base the forecast on actual results obtained in the first quarter plus the expected costs of production to be completed in the remainder of the year. They worked with various department heads (production, sales, and so on) to get the necessary information. The results of these efforts follow: \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Inverness Manufacturing } \\ \hline \multicolumn{2}{|c|}{ Budgeted Balance Sheet } \\ \hline Current assets & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total current assets & & \\ \hline & & \\ \hline & & \\ \hline Total assets & & \\ \hline Current liabilities & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total shareholders' equity & & \\ \hline Total liabilities and shareholders' equity & & \\ \hline \end{tabular} INVERNESS MANUFACTURING Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1 Revenues Sales revenue Other income Expenses Cost of goods sold Materials Direct labor Variable overhead Fixed overhead Beginning inventory Ending inventory Selling Salaries Commissions Promotion and advertising General and administrative Salaries Travel office costs Income taxes Operating profit Beginning retained earnings Subtotal Less dividends Ending retained earnings $1,430,000 53,000 $1,483,000 $428,000 413,000 251,000 40,000$1,132,000 152,000$1,284,000 $1,132,000 $44,500 53,000 98,500196,000 $46,000 10,000 28,00084,000 15,800 1,427,800 55,200 277,400$332,600 \begin{tabular}{r} $19,000 \\ \hline$313,600 \\ \hline \end{tabular} Required: Prepared a budgeted income statement and balance sheet for year 2 . Prepared a budgeted income statement. Note: Round "Cost per unit" to 2 decimal places. Do not round any other intermediate calculations. Enter final answers to the nearest whole dollar. \begin{tabular}{|c|l|l|} \hline Revenue: & & \\ \hline Sales revenue & & \\ \hline Other income & & \\ \hline Total revenue & & \\ \hline Expenses: & & \\ \hline Cost of goods manufactured and sold: & & \\ \hline Materials & & \\ \hline Direct labor & & \\ \hline Variable overhead & & \\ \hline Fixed overhead & & \\ \hline Total current manufacturing costs & & \\ \hline Beginning inventory & & \\ \hline Total cost of goods manufactured & & \\ \hline Ending inventory & & \\ \hline Marketing: & & \\ \hline Salaries & & \\ \hline Commissions & & \\ \hline Promotions and advertising & & \\ \hline Administrative: & & \\ \hline Salaries & & \\ \hline Travel & & \\ \hline Office costs & & \\ \hline Income taxes (credit) & & \\ \hline Total expenses & & \\ \hline Operating profit (loss) & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{ INVERNESS MANUFACTURING } \\ \hline Cash & $7,000 & \\ \hline Accounts receivable & 248,000 & \\ \hline Inventory (January 1, Year 2) & 152,000 & \\ \hline Plant and equipment & 406,000 & \\ \hline Accumulated depreciation & & $131,000 \\ \hline Accounts payable & & 143,000 \\ \hline Notes payable (due within one year) & & 158,000 \\ \hline Accrued payables & & 77,750 \\ \hline Common stock & & 218,000 \\ \hline Retained earnings & & 313,600 \\ \hline Sales revenue & & 1,880,000 \\ \hline Other income & & 35,000 \\ \hline \multicolumn{3}{|l|}{ Manufacturing costs } \\ \hline Materials & 647,000 & \\ \hline Direct labor & 662,000 & \\ \hline Variable overhead & 398,000 & \\ \hline Depreciation & 23,000 & \\ \hline Other fixed overhead & 25,250 & \\ \hline \multicolumn{3}{|l|}{ Marketing } \\ \hline Salaries & 49,600 & \\ \hline Commissions & 68,000 & \\ \hline Promotion and advertising & 153,000 & \\ \hline \multicolumn{3}{|l|}{ Administrative } \\ \hline Salaries & 56,000 & \\ \hline Travel & 11,500 & \\ \hline Office costs & 31,000 & \\ \hline Income taxes & - & \\ \hline \multirow[t]{2}{*}{ Dividends } & 19,000 & \\ \hline & 2,956,350 & 2,956,350 \\ \hline \end{tabular} Adjustments for the change in inventory and for income taxes have not been made. The scheduled production for this year is 229,000 units, and planned sales volume is 208,000 units. Sales and production volume was 158,000 units last year. The company uses a fullabsorption costing and FIFO inventory system and is subject to a 20 percent income tax rate. The actual income statement for last year follows: The management at Inverness Manufacturing feels confident about the company's prospect in the current year (year 2). Sales in the first quarter were one-third ahead of last year, and the sales department predicted that this rate would continue throughout the entire year. The controller asked the budget team to prepare a draft forecast for the year and to analyze the differences from last year's results. They decided to base the forecast on actual results obtained in the first quarter plus the expected costs of production to be completed in the remainder of the year. They worked with various department heads (production, sales, and so on) to get the necessary information. The results of these efforts follow: \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Inverness Manufacturing } \\ \hline \multicolumn{2}{|c|}{ Budgeted Balance Sheet } \\ \hline Current assets & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total current assets & & \\ \hline & & \\ \hline & & \\ \hline Total assets & & \\ \hline Current liabilities & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total shareholders' equity & & \\ \hline Total liabilities and shareholders' equity & & \\ \hline \end{tabular} INVERNESS MANUFACTURING Statement of Income and Retained Earnings For the Budget Year Ended December 31, Year 1 Revenues Sales revenue Other income Expenses Cost of goods sold Materials Direct labor Variable overhead Fixed overhead Beginning inventory Ending inventory Selling Salaries Commissions Promotion and advertising General and administrative Salaries Travel office costs Income taxes Operating profit Beginning retained earnings Subtotal Less dividends Ending retained earnings $1,430,000 53,000 $1,483,000 $428,000 413,000 251,000 40,000$1,132,000 152,000$1,284,000 $1,132,000 $44,500 53,000 98,500196,000 $46,000 10,000 28,00084,000 15,800 1,427,800 55,200 277,400$332,600 \begin{tabular}{r} $19,000 \\ \hline$313,600 \\ \hline \end{tabular} Required: Prepared a budgeted income statement and balance sheet for year 2