(Pro forma income statement) Greenville Novelty Wholesale Store has prepared the following budget information for May 1998:
■ Sales of $300,000. All sales are on account and a provision for bad debts is made monthly at 3 percent of sales.
■ Inventory was $70,000 on April 30 and an increase of $10,000 is planned for May.
■ AH inventory is marked to sell at cost plus 50 percent.
■ Estimated cash disbursements for selling and administrative expenses for the month are $40,000.
■ Depreciation for May is projected at $5,000.

Prepare a pro forma income statement for Greenville Novelty Wholesale Store for May 1998.
(CPA adapted)LO1