A B 1 2 3 4 5 6 Sales 7 Cost of goods sold (units sold* unit cost) 8 Gross profit 9 Selling and administration expenses 10 Income from operations 11 Interest expense 12 Income before income taxes 13 Income tax expense 14 Net income 15 16 17 Notes: 1. 1400 finished PVC in inventory 12/31 18 balance sheet value of $64,400. Unit 19 cost for these units $64,400/1400=$46. 20 2. COGS in January calculated 1400*$46 21 plus (7000-1400)*$46.4 22 Budgeted Income Statement Williams Company First Quarter January February March Quarter 1 $0 $0 $0 $0 G