As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 2009, the following tentative trial balance as of December 31, 2008, is prepared by the Accounting Department of Coconut Grove Soap Co.:

Factory output and sales for 2009 are expected to total 215,000 units of product, which are to be sold at $4.60 per unit. The quantities and costs of the inventories at December 31, 2009, 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 $80,000 on 2009 taxable income will be paid during 2009. Regular quarterly cash dividends of $0.80 a share are expected to be declared and paid in March, June, September, and December. It is anticipated that fixed assets will be purchased for $60,000 cash in May.

Instructions
1. Prepare a budgeted income statement for 2009.
2. Prepare a budgeted balance sheet as of December 31, 2009, with supportingcalculations.

Cash 90,000 108,600 72,400 27,500 49,700 3,400 350,000 counts Receivable Finished Goods Materials Accumulated Depreciation-Plant and Equipment $130,400 57,000 185,000 329,200 701,600 $701,600 Estimated Costs and Expenses Fixed Variable Total for Year) (Per Unit Sold) Cost of goods manufactured and sold $0.80 0.45 Factory overhead Depreciation of plant and equipment $45,000 7,000 0.30 0.35 0.15 Selling expenses: Sales salaries and commissions ..-......._... 40,000 55,000 4,500 Miscellaneous selling expense... Administrative expenses: Office and officers salaries .....-............ Supplies..._. . . Miscellaneous administrative expense 67,100 3,000 2,000 0.17 0.06 0.09