Budgeted Income Statement and Balance Sheet As a preliminary to requesting budge

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Budgeted Income Statement and Balance Sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1 20Y9, the following ten Regina Soap Co. Cash Accounts Receivable Finished Goods Work in Process Materials Prepaid Expenses Plant and Equipment Accumulated Depreciation-Plant and Equipment Accounts Payable Common Stock, $10 par Retained Earnings tative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of $114,000 208,600 43,800 29,200 48,000 3,500 575,700 $247,600 165,800 350,000 259,400 $1,022,800 $1,022,800 Factory output and sales for 20Y9 are expected to total 28,000 units of product, which are to be sold at $100 per unit The quantities and costs of the inventories at December 31, 20Y9, 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 $25 $28,000 8,700 Depreciation of plant and equipment 4.5 Other factory overhead Selling expenses: Sales salaries and commissions Advertising Miscellaneous selling expense Administrative expenses Office and officers salaries Supplies Miscellaneous administrative expense Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected differ significantly from the beginning balances. Federal income tax of $237,700 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June September, and December on 35,000 shares of common stock outstanding. It is anticipated that fixed assets will 12.5 100,500 84,000 7,300 2 6.5 66,100 3,400 1,800 1.5 to be purchased for $155,000 cash in Ma

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1. Budgeted Income Statement Sales 28000*100 2800000 Cost of Goods Sold: Direct Material 28000*25 700000 Direct Labor 28000*8 224000 Factor Overhead 28000+8700+(28000*4.5) 162700 Cost of Goods Sold 1086700 Gross Profit Sales-Cost of Goods Sold 1713300 Operating Expense: Selling Expense: Sales, Salaries and Commission 100500+(28000*12.5) 450500 Advertising 84000 Miscellaneous Expense 7300+(28000*2) 63300 Total Selling Expense 597800 Administrative Exoense: Office and Officeer salaries 66100+(28000*6.5) 248100 Supplies 3400+(28000*1) 31400 Miscellaneous Admin 1800+(28000*1.5) 43800 Total Administrative Expense 323300 Total Opearting Expense Selling+Admin 921100 Income Bfore Tax Gross Profit-Operating Exp 792200 Income Tax Expense 237700 Net Income 554500 2. Budgeted Balance Sheet Current Assets: Cash Working given below 401500 Accounts Receivable 208600 Inventories: Finished Goods 43800 work in Process 29200 Materials 48000 121000 Prepaid Expense 3500 Total Current Asset 734600 Property Pland and Equipment Plant and Equipment 575700+155000 730700 Accumulated Depreciation 247600+28000 -275600 Total Property Plant Equipment 455100 Total Assets 1189700 Current Liabilities: Accounts Payable 165800 Stockholder Equity: Common Stock 350000 Retained Earning 259400+554500-(35000*1*4) 673900 Total Stockholder Equity 1023900 Total Liabilities and Equity 1189700 Cash Working: Cash Beginning 114000 Add: Cash Sale 2800000 Less:Income Tax -237700 Less: Fixed Asset Purchase -155000 Less: Operating Expense -921100 Less: Direct Material Pur -700000 Less: Direct Labor -224000 Less: Overhead (Excluding Dep) -134700 Less:Dividend Paid (35000*4) -140000 Ending Cash 401500

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