ABC Merch, a merchandising firm, has budgeted its activity for December according to the following information: Sales at $600,000, all for cash. Merchandise Inventory on November 30 was $250,000. The cash balance at December 1 was $30,000. Selling and administrative expenses are budgeted at $60,000 for December and are paid for in cash. Budgeted depreciation for December is $25,000. The planned merchandise inventory on December 31 is $260,000. The cost of goods sold represents 70% of the selling price. Interest expense during December is $5,000. All purchases are paid in cash.

Using this information prepare a Budgeted Income Statement for December: