Branson Electronics Company is a small, publicly traded company preparing its first quarter interim report to be mailed to shareholders. The following information for the quarter has been compiled:

Revenues$180,000Cost of goods sold35,000Operating expenses:Fixed$59,000Variable48,000107,000

Fixed operating expenses include payments of $50,000 to an advertising firm to promote Branson through various media throughout the year. The income tax rate for Branson's level of operations in the first quarter is 30%, but management estimates the effective rate for the entire year will be 36%.

Required:

Prepare the income statement to be included in Branson's first quarter interim report.