Below is the actual monthly sales data for Company Z for the most recent year: Monthly Gross Sales Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total 38,000 41,000 46,000 56,000 60,000 71,000 53,000 53,000 45,000 37,000 39,000 31,000 570,000

Use the following information to prepare a Forecasted Monthly Income Statement (be sure to prepare each line of this income statement by month and then add up the annual total of each line--in the answers below, you will only be inputting the annual total amount for each income statement

• Assume that ABC Company expects a 10% increase in gross sales in the coming year (10% more than the $570,000 it had in the past year). Prepare its monthly gross sales forecast, assuming the company breaks its gross sales down by month using the same percentages as the actual gross sales from the past year.
• ABC Companys cost of goods sold last year was 60% of net sales. It anticipates that this will be the same in the coming year.
• Its sales returns and allowances are small, normally 1% of gross sales.
• Rent expense is $1,000 per month. However, the landlord has indicated that rent will go up to $1,250 in the fourth quarter.
• Depreciation expense is $2,250 per month and does not change throughout the year.
• Salaries expense is $1,500 per month and is expected to go up by 10% in the second half of the year, when a new compensation plan will be implemented.
• Utilities expense is $5,400 for the entire year and should be allocated to each month based on that months percentage of forecasted annual gross sales.
• Interest expense is $500 per month.
• Income tax is 25% of operating income less interest expense.

Input the annual total of the following line items (answer format: x,xxx):

Gross Sales? $ ;

Sales Returns & Allowances $ ;

Cost of Goods Sold $ ;

Rent Expense $ ;

Depreciation Expense $ ;

Salaries Expense $ ;

Utility Expense $ ;

Interest Expense $ ;

Income Tax Expense $ ;

Net Income $