Kurian Industries' balance sheet at December 31, 2015, is presented below.

	KURIAN INDUSTRIES Balance Sheet December 31, 2015
	Assets
	Current assets
	Cash			$7,600
	Accounts receivable			82,000
	Finished goods inventory (2,200 units)			30,100
	Total current assets			119,700
	Equipment	$40,300
	Less: Accumulated depreciation	10,700		29,600
	Total assets			$149,300
	Liabilities and Shareholders' Equity
	Liabilities
	Notes payable			$25,500
	Accounts payable			45,100
	Total liabilities			70,600
	Shareholders equity
	Common stock	$49,900
	Retained earnings	28,800
	Total shareholders equity			78,700
	Total liabilities and shareholders equity			$149,300

Budgeted data for the year 2016 include the following.

		Q4 of 2016			Year 2016 Total
	Sales budget (8,500 units at $38)	$96,900			$323,000
	Direct materials used	17,400			69,600
	Direct labor	12,900			55,500
	Manufacturing overhead applied	10,800			72,300
	Selling and administrative expenses	18,200			76,200

To meet sales requirements and to have 3,100 units of finished goods on hand at December 31, 2016, the production budget shows 9,400 required units of output. The total unit cost of production is expected to be $21. Kurian Industries uses the first-in, first-out (FIFO) inventory costing method. Selling and administrative expenses include $4,300 for depreciation on equipment. The company expects interest expense to be $3,800 for the year and income taxes to be 40% of income before income taxes. All sales and purchases are on account. The company expects to collect 60% of the quarterly sales in cash within the quarter and the remainder in the following quarter. It pays direct materials purchased from suppliers 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2016, the company expects to purchase additional equipment costing $17,700. It expects to pay $8,100 on notes payable plus all interest due and payable to December 31 (included in interest expense $3,800, above). Accounts payable at December 31, 2016, includes amounts due to suppliers (see above) plus other accounts payable of $5,200. In 2016, the company expects to declare and pay a $5,300 cash dividend. Unpaid income taxes at December 31 will be $9,672. The company's cash budget shows an expected cash balance of $15,872 at December 31, 2016.

Prepare a budgeted income statement for 2016. In preparing the income statement, you will need to calculate the cost of goods manufactured (materials + labour + overhead) and finished goods inventory (December 31, 2016). (Round answers to 0 decimal places, e.g. 125.)

KURIAN INDUSTRIES Budgeted Income Statement For the Year Ending December 31, 2016