Question
LaChutLaChut Labs performs a specialty lab test for local companies for $ 52$52 per test. For the upcoming quarter, LaChutLaChut Labs is projecting the following
LaChutLaChut
Labs performs a specialty lab test for local companies for
$ 52$52
per test. For the upcoming quarter,
LaChutLaChut
Labs is projecting the following sales:
| January | February | March |
Number of lab tests. . . . . . | 5,400 | 4,900 | 5,800 |
The budgeted cost of performing each test is
$ 28$28.
Operating expenses are projected to be
$ 61 comma 000$61,000
in January,
$ 50 comma 000$50,000
in February, and
$ 62 comma 000$62,000
in March.
LaChutLaChut
Labs is subject to a corporate tax rate of
3030%.
Requirement
Prepare a budgeted income statement for the first quarter, with a column for each month and for the quarter.
Prepare the budgeted income statement by first calculating the operating income, then calculate the net income.
LaChut Labs | ||||
Budgeted Income Statement | ||||
For the Quarter Ended March 31 | ||||
| January | February | March | Quarter |
Sales |
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Less: Cost of goods sold |
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Gross profit |
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Less: Operating expenses |
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Operating income |
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Less: Income tax expense |
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Net income |
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