Calgary Industries is preparing a budgeted income statement for 2018 and has accumulated the following information. Predicted sales for the year are $740,000 and cost of goods sold is 40% of sales. The expected selling expenses are $83,500 and the expected general and administrative expenses are $92,500, which includes $25,500 of depreciation. The company's income tax rate is 30%. The budgeted net income for 2018 is:

Multiple Choice

$453,000.

$193,900.

$277,000.

$85,200.

$83,100.