Franco’s Cart Company manufactures small carts that are designed to be pulled behind a small tractor or riding lawn mower. The following budgets were prepared for Franco’s Cart Company:

Required: Prepare a budgeted income statement for the first quarter of 2004 for Franco’s Cart Company.

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Franco's Cart Company Sales Budget For the Quarter Ended March 31, 2004 Budgeted Sales in Units x Budgeted Sales Price = Budgeted Sales Dollars Jan 1,300 Feb Mar Total 1,450 1,700 4,450 186 186 186 186 $269,700 $316,200 $827,700 $241,800 Franco's Cart Company Cost of Goods Sold Budget For the Quarter Ended March 31, 2004 Budgeted Sales in Units Jan 1,300 Feb Mar Total 1,450 1,700 4,450 Budgeted Cost per Unit 154 154 $ 154 154 Budgeted Cost of Goods Sold $200,200 $223,300 $261,800 $685,300 Franco's Cart Company Selling and Administrative Expense Budget For the Quarter Ended March 31, 2004 Jan Feb Mar Total Salaries and Wages $21,950 $22,200 $23,600 $67,750 Rent 4,000 4,500 4,500 13,000 Depreciation 3,200 3,200 3,200 9,600 Other 2,300 2,500 2,800 7,600 Budgeted S&A Expense $31,450 $32,400 $34,100 $97,950