Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process:

Budgeted unit sales	560
Selling price per unit	$2,000
Cost per unit	$1,360
Variable selling and administrative expenses (per unit)	$80
Fixed selling and administrative expenses (per year)	$265,000
Interest expense for the year	$16,000

Required:

Prepare the companys budgeted income statement using an absorption income statement format.