Matt Domby is the owner of Domby€™s Boot Store. Matt currently is formulating his budget for the coming year and provides you with the following information about expected quarterly sales.

Matt believes revenues will be highest in Quarters 2 and 4 because of his semiannual €œ20% off everything€ sale held during May and November. Indeed, Matt estimates that half of Quarter 2 and Quarter 4 sales will be at the sale prices. However, Matt informs you that the sales estimates in the table above are gross amounts; that is, they represent expected revenues before any discounts.
Matt notes that 80% of his sales are paid with credit cards and that he pays a 2% transaction fee to the credit card company. (Note: Credit card fees are based on net sales€”that is, on what the customers actually pay.) Matt€™s normal prices include a 45% markup on his cost, and he spends $35,000 on fixed costs per month. Required:
Prepare a quarter-by-quarter income statement for Domby€™s BootStore.

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Quarter Sales $406,000 $529,250 $420,500 S594,500