The results of operations for the Creich Manufacturing Company for the fourth quarter of 2020 were as follows Sales 5572.000 348,000 224 000 $120.000 Lexs variable cost of a Contribution margin Lesshed production costs Less foed selling and administrative expenses Income before taxes Less taxes on income Net Income 56.000 176,000 48.000 19 200 $ 28.800 Note: Cinrich Manufacturing ones the variable conting method. Thus, only variable production conts are included in Inventory and cos of goods sold. Flued production costs are changed to expante in the period incurred, The company's balance sheet as of the end of the fourth quarter of 2020 was as follow Assets Cash $ 164.000 224.000 404,000 Accounts receivable Inventory Total current assets Property.plant and equipment Less accumulated depreciation 792000 460.000 112.000 Total assets $ 140,000 Liabilities and owners equity Accounts payable $ 64.800 Common stock 564.000 511.200 Retained earnings Total abilities and owners equity $ 1.100.000 Additional information 1 2 3 Sales and variable costs of sales are expected to increase by 12 percent in the best quartet All sales are on credit with 60 percent collected in the quarter of sale and 40 percent collected in the following quarter Variable cost of sales.consists of 40 percent materials 40 percent direct labor and 20 percent variable overhead Materiais se purchased on credit. Fifty percent are paid for in the courter of purchase, and the remaining amount is paid for in the quarter after purchase. The inventory balance knot expected to change. Also direct labor and variable overhead contar paid in the quarter the expenses are incurred Fixed production costs fother than $ 9.000 of depreciation experele expected to increase by the street. Feed production costs requiring payment are paid in the quarter they are incurred Food selling and administrative costs fother than 57.000 of depreciation expected to increase by two percent and selling and administrative costruirement are paid in the quarter they are incurred The tax rate is expected to be 20 percent Nites are paid in the quarter they are incred Hop of property, plant, or equipment are spected in the first quarter of 2021. 5 Prepare a budgeted income statement for the first quarter of 2021. Cinrich Manufacturing Company Budgeted Income Statement For the Quarter Ended March 31, 2021 Sales Less Variable cost of sales Contribution marrin Less Fixed production costs Fixed selling and administrative expenses Income before taxes Less V Taxes on income Net Income/loss)