Sosa Company has the following post-closing trial balance on December 31, 2024: (Click the icon to view the post-closing trial balance.) The company's accounting department has gathered the following budgeting information for the first quarter of 2025: (Click the icon to view the budgeting information.) Additional information: a. 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, 2024 are paid in the first quarter of 2025. Read the requirements. Requirement 1. Prepare Sosa Company's budgeted income statement for the first quarter of 2025. Sosa Company Budgeted Income Statement Data table For the Quarter Ended March 31, 2025 , Sales Revenue Cost of Goods Sold Gross Profit Sosa Company Post-Closing Trial Balance December 31, 2024 Account Credit Cash $ Selling and Administrative Expenses Income before Income Taxes Income Tax Expense Net Income Debit 32,000 25,400 Accounts Recelvable 9,000 25,800 Raw Materials Inventory Finished Goods Inventory Equipment Accumulated Depreciation Accounts Payable 145,000 $ 10,000 9,000 Common Stock 100,000 118,200 Retained Earnings $ Totals 237,200 237,200 $ - Data table $ 306,000 31,000 13,320 Budgeted total sales, all on account Budgeted direct materials to be purchased and used Budgeted direct labor cost Budgeted manufacturing overhead costs: Variable manufacturing overhead Depreciation Insurance and property taxes 2,000 1,500 1,300 Budgeted cost of goods sold 71,800 Budgeted selling and administrative expenses: Salaries expense 12,000 Rent expense 4,000 Insurance expense 2,000 400 6,120 Depreciation expense Supplies expense Budgeted cash receipts from customers Budgeted income tax expense Budgeted purchase and payment for capital expenditures (additional 265,000 46,000 39,000 Requirement 2. Prepare Sosa Company's budgeted balance sheet as of March 31, 2025. Sosa Company Budgeted Balance Sheet March 31, 2025 Assets Current Assets: Cash Accounts Receivable Raw Materials Inventory 9,000 Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity $ Common Stock 100,000 Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity TI