Forlune, Incorporated is preparing its master budget for the first quarter. The company sells a single product at a price of $$30$ per unit. Sales $($in units$)$ are budgeted at $180,000$ for the first quarter. Cost of goods sold is $$16$ per unit. Other expense information for the first quarter followsSales commissionsRentAdvertisingOffice salariesDepreciationInterestTax rate$4\%$ of sales$$60,000$per quarter$$540,000$per quarter$$225,000$per quarter$$120,000$per quarter$1\mathrm{.}10\%$ quarterly on a $$100,000$ note payable$25\%$Prepare a budgeted income statement for the first quarter ended March $31.$Exercise $2$:Use the following information to prepare the July cash budget for KurtsBeginning cash balance on July $1$: $$72,000$Cash receipts from sales: $10\%$ is collected in the month of sale, $50\%$ in the next month, and $40\%$ in the second month after sale. Sales amounts are: May $($actual$),$ $$1,930,000$; June $($actual$),$ $$1,540,000$; and July $($budgeted$),$ $$1,690,000.$c$.$ Payments on merchandise purchases: $65\%$ in the month of purchase and $35\%$ in the month following purchase. Purchases amounts are June $($actual$),$ $$390,000$; and July $($budgeted$),$ $$850,000.$Budgeted cash payments for salaries in July: S$180,000.$Budgeted payments for sales commissions for July: $$290,000$Budgeted cash payment for income taxes due in July: $$70,000$Budgeted cash payment for loan interest in July: $55,000.$Budgeted Depreciation in July: $$55,000$