Selling and administrative expenses budget and budgeted income statement}

A listing of budgeted selling and administrative expenses for Glide Tire Company in P7-2 for the year ended December 31, 2008, were as follows:

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Advertising expense Office rent expense... Office salaries expense Office supplies expense. Officers' salaries expense Sales salaries expense Telephone and fax expense Travel expense....... $942,000 125,000 821,000 45,500 661,000 868,000 33,500 443,000 Required: 1. Prepare a selling and administrative expenses budget, in good form, for the year 2008. 2. Using the information above and the budgets prepared in P7-2, prepare a budgeted income statement for the year 2008, assuming an income tax rate of 40%.