Have I calculated the interest exp properly? How do I get the income before taxes?

Problem 20-4B Manufacturing: Preparation of a complete master budget The management of Manufacturing prepared the following estimated balance sheet for June NABAR MANUFACTURING Estimated Balance Sheet June 30.2019 24 ooo 3ss,4co $1.045.980 _ The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables are collected in full In the month following the sale (none are collected in the month of the sale). All raw materials purchases are on credit, and no payables anse from any other transactions. One month's raw materials purchases are fully paid in the next month. Dividends of 520,000 are to be declared and paid in August k. Income taxes payable at June 30 will be paid in July. Income tax expense will be assessed at 35% in the quarter and paid in October. Equipment purchases of SIWOOO are bu*ted for the last day of September. The minimum ending cash balance for all months is S40,OOC If necessary, the company borrows enough cash usinga short-term note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any repayment). Ifthe ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance. Required Prepare the follmving budgets and other financial information as required. All budgets and other financial information should be prepared for the third calendar quarter, except as otherwise noted below. Round calculations to the nearest whole dollar _ I. Sales budget 2. Production budget Check (2) Units to produce: July, 17,500; August, 19,700 3. Raw materials budget (3) Cost of raw materials purchases: July, 550,760 4. Direct labor budget. 5. Factory overhead budget (5) Total overhead cost: August, 546,595 6. expense bu#et_ 7 _ General and administrative expense budget. 8. Cash budget. (8) Ending cash balance: July, 596,835; Al_ust, S141,180 9. Budgeted income statement for the entire quarter (not for each month separately). 10. Budgeted balance sheet as of September 30, 2019_Page 815 (10) Budgeted total assets: Sep. 30, 6 7 8 g 10 11 12 13 14 15 18 38 Sales Cost of goods sold Gross profit Operating expenses Sales comissions Sales salaries Administrative Salaries Interest expense Income before taxes Income tax expense (35% in quarter & paid in oct Net income 1428000 1,344,000 102,000 10,500 27,000 Accountsreivable . grds inwMuy Total currentassets.. . Equ Equipment. $ 400 241 ogo pao.coo) U ablllues and Ewlty Income taxes payable 910'tterm n tes wyable Total cu Long-term note payau _ Total liabilit'es . Reta in ear ninqs Total stockholds equity Total liabiMks and ewity To prepare a master budget for July, August, and September of 2019, management gathers the foaming information Sales were units in June. Forecasted sales in units are as follows: Juty, 21,m August, a. 19,000; September, 20,000; and October, 24,0W_ The prcu3uct's selling price is 517 per and its total product cost 15 514.35 per unit. Company policy calls for a given month's ending finished goods inventory to equal 70% of the next month's expected unit sales. The June 30 finished gcu'ds Inventory is 16,800 units, which does not comply with the policy. Company policy calls for a given month's ending raw materials inventory to equal 20% of the next month's materials requirements. The June 30 raw materials inventory is 4,375 units (which also fails to meet the policy) The budgeted September 30 raw materials inventory is 1,980 units Raw materials cost 58 per unit Each finished unit requires 0.50 units of raw materials. _ Each finished unit requires 0_50 hours of direct labor ata rate of S16 per hour. Overhead is allocated based on direct labor hours The predetermined variable overhead rate is 52.70 per direct labor hour _ Depreciation of 520,000 per month is treated as fixed factory Monthly general and administrative expenses include 59,000 administrative salaries and monthly interest on the long-term note payable. Sales representatives" commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary is S3,5m