Factory output and sales for 2011 are expected to total 225000 units of product

Factory output and sales for 2011 are expected to total 225000 units of product which are to be sold at $5.20 per unit. The quantities and costs of the inventories at December 31 2011 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 $90000 on 2011 taxable income will be paid during 2011. Regular quarterly cash dividends of $1.00 a share are expected to be declared and paid in March June September and December on 19000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $75000 cash in May.Instructions1. Prepare a budgeted income statement for 2011.2. Prepare a budgeted balance sheet as of December 31 2011 with supportingcalculations.