Martinez Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below.

		Product JB 50		Product JB 60
Sales budget:
Anticipated volume in units		403,200		203,300
Unit selling price		$23		$28
Production budget:
Desired ending finished goods units		28,000		17,000
Beginning finished goods units		33,500		12,100
Direct materials budget:
Direct materials per unit (pounds)		1		2
Desired ending direct materials pounds		33,100		16,400
Beginning direct materials pounds		44,900		14,900
Cost per pound		$3		$4
Direct labor budget:
Direct labor time per unit		0.3		0.6
Direct labor rate per hour		$11		$11
Budgeted income statement:
Total unit cost		$14		$22

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $665,000 for product JB 50 and $362,000 for product JB 60, and administrative expenses of $545,000 for product JB 50 and $344,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). MARTINEZ INC. Budgeted Income Statement For the Year Ending December 31, 2017 JB 50 JB 60 Total Sales 9273600 5 692400 14966000 Cost of Goods Sold 5644800 4472600 11337200 Gross Profit 3628800 1219800 4848600 Operating Expenses Selling Expenses Administrative Expenses Total Operating Expenses Income from Operations Interest Expense Income before Income Taxes Income Tax Expense Net Income /(Loss)