Posted: November 20th, 2014

Budgeted Income Statement and Balance Sheet.

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, 2015, the following tentative trial balance as

of December 31, 2014, is prepared by the Accounting Department of Regina Soap Co.:

Factory output and sales for 2015 are expected to total 200,000 units of product, which are to be sold at $5.00 per unit. The quantities and costs of the inventories

at December 31, 2015, 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:

Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances.

Federal income tax of $30,000 on 2015 taxable income will be paid during 2015. Regular quarterly cash dividends of $0.15 per share are expected to be declared and paid

in March, June, September, and December on 18,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $75,000 cash in May.

1.    Prepare a budgeted income statement for 2015.
2.  Prepare a budgeted balance sheet as of December 31, 2015.

Regina Soap Co
Budgeted Income Statement        atement for 2015
For the Year 2015
Budget Figures in Dollars
OPETATING REVENUE
Budgeted Net Sale                         1,000,000

LESS
Budgeted cost of merchandise sold                        632,100
Gross Profit on Operation                         376,900

LESS
Oprating Expenses
Budgeted Selling Expenses                         138,200
Budgeted Administrative Expenses                         82100
Budgeted Other Expenses                         10,800
Income from Operations                         145,800

LESS
Budget Corporate Tax                         30,000

Net Income                         115,800

Regina Soap Co
Budget Balance Sheet
For the Year Ended Desember 31, 2015
Assets         $            Liabilities     & Equity
Fixed Assets        75,000        Equity
75,000    Cash         85,000
Current Assets             Sales         1,000,000
Account Receivable         125,600            1,085,000
Finished Goods        69300
Materials         48,900        Liability
Work In Progress        32,500    Account Payable         62,000
Plants and Equipment         346,400    Dividents Payable         10,800
Tax         30,000
Sales Expenses         138,200
Administration Expences         145,800
Prepaid Expenses         2,600

Total         697,700    Total         697,700

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