Exercise 20-34 Budgeted income statement LO P3

Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are forecasted at 43,000 for January, 63,000 for February, and 53,000 for March. Cost of goods sold is $12 per unit. Other expense information for the first quarter follows.

Comissions	10%	of sales per dollars
Rent	$23,000	per month
Advertising	12%	of sales dollars
Offices salaries	$73,000	per month
Depreciation	$53,000	per month
Interest	15%	annually on a $290,000 note payable
Tax rate	40%

Prepare a budgeted income statement for this first quarter. (Round your final answers to the nearest whole dollar.)

FORTUNE, INC.
Budgeted Income Statement
For Quarter Ended March 31
Operating expenses
		0
		$0