Ivanhoe 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 2022. 1. 2. Sales: quarter 1, 28,400 bags; quarter 2, 42,200 bags. Selling price is $62 per bag. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $4 per pound and 6 pounds of Tarr at $1.50 per pound. Desired inventory levels: 3. January 1 April 1 July 1 8,500 12,300 18,100 Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) 9,300 10,300 13,100 14,300 20,500 25,100 4. 5. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. Selling and administrative expenses are expected to be 15% of sales plus $176,000 per quarter. Interest expense is $100,000. Income taxes are expected to be 20% of income before income taxes. 6. 7. 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 decimal places, eg. 1,255.) IVANHOE FARM SUPPLY COMPANY Budgeted Income Statement For the Six Months Ending June 30, 2022 Sales $ 4377200 Cost of Goods Sold Gross Profit Selling and Administrative Expenses Income from Operations Interest Expense Income Before Income Tax > > Income Tax Expense Net Income /(Loss) $