Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2020.

1.		Sales: quarter 1, 28,400 bags; quarter 2, 42,200 bags. Selling price is $62 per bag.
2.		Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.50 per pound.
3.		Desired inventory levels:

Type of Inventory		January 1		April 1		July 1
Snare (bags)		8,500		12,300		18,100
Gumm (pounds)		9,300		10,300		13,100
Tarr (pounds)		14,300		20,500		25,100

4.		Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour.
5.		Selling and administrative expenses are expected to be 15% of sales plus $176,000 per quarter.
6.		Interest expense is $100,000.
7.		Income taxes are expected to be 30% of income before income taxes.

Your assistant has prepared two budgets: (1) the manufacturing overhead budget shows expected costs to be 125% of direct labor cost, and (2) the direct materials budget for Tarr shows the cost of Tarr purchases to be $299,000 in quarter 1 and $427,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)

Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations to 2 decimal places and final answer to 0 decimal places, e.g. 1,255.)

COOK FARM SUPPLY COMPANY Budgeted Income Statement For the Six Months Ending June 30, 2020For the Quarter Ending June 30, 2020June 30, 2020
PurchasesGross ProfitIncome Tax ExpenseSalesIncome from OperationsTotal Operating ExpensesInterest ExpenseOperating ExpensesSelling and Administrative ExpensesCost of Goods SoldIncome Before Income TaxBeginning InventoryNet Income / (Loss)Ending Inventory		$
Operating ExpensesIncome Before Income TaxTotal Operating ExpensesBeginning InventoryIncome from OperationsNet Income / (Loss)SalesPurchasesInterest ExpenseSelling and Administrative ExpensesGross ProfitIncome Tax ExpenseCost of Goods SoldEnding Inventory
Net Income / (Loss)Cost of Goods SoldOperating ExpensesIncome Before Income TaxInterest ExpenseBeginning InventoryGross ProfitSelling and Administrative ExpensesPurchasesIncome Tax ExpenseTotal Operating ExpensesIncome from OperationsEnding InventorySales
Gross ProfitInterest ExpenseTotal Operating ExpensesPurchasesBeginning InventoryIncome Tax ExpenseOperating ExpensesCost of Goods SoldEnding InventorySelling and Administrative ExpensesIncome from OperationsSalesIncome Before Income TaxNet Income / (Loss)
Total Operating ExpensesGross ProfitInterest ExpenseOperating ExpensesIncome Before Income TaxIncome Tax ExpensePurchasesNet Income / (Loss)Cost of Goods SoldSelling and Administrative ExpensesIncome from OperationsEnding InventoryBeginning InventorySales
Income from OperationsIncome Before Income TaxOperating ExpensesIncome Tax ExpenseEnding InventoryInterest ExpenseTotal Operating ExpensesBeginning InventorySelling and Administrative ExpensesCost of Goods SoldGross ProfitSalesPurchasesNet Income / (Loss)
Beginning InventoryCost of Goods SoldGross ProfitIncome Before Income TaxSalesTotal Operating ExpensesPurchasesIncome from OperationsOperating ExpensesSelling and Administrative ExpensesNet Income / (Loss)Income Tax ExpenseEnding InventoryInterest Expense
Selling and Administrative ExpensesInterest ExpenseCost of Goods SoldIncome Before Income TaxSalesGross ProfitTotal Operating ExpensesNet Income / (Loss)PurchasesIncome Tax ExpenseOperating ExpensesEnding InventoryIncome from OperationsBeginning Inventory
Ending InventorySalesNet Income / (Loss)Selling and Administrative ExpensesCost of Goods SoldBeginning InventoryIncome from OperationsIncome Before Income TaxIncome Tax ExpenseTotal Operating ExpensesGross ProfitInterest ExpenseOperating ExpensesPurchases		$