Monette Motors is a chain of car dealerships. Sales in the fourth quarter of last year were $4,100,000. Suppose management projects that its current year's quarterly sales will increase by 6% in quarter 1, by another 5% in quarter 2, by another 7% in quarter 3, and by another 3%in quarter 4. Management expects cost of goods sold to be 45% of revenues every quarter, while operating expenses should be 30% of revenues during each of the first two quarters, 25% of revenues during the third quarter, and 20%during the fourth quarter.

Requirement: Prepare a budgeted income statement for each of the four quarters and for the entire year.

Prepare the first portion of the budgeted income statement through gross profit, then complete the statement. (Round the amounts to the nearest whole dollar.)

Monette Motors
Budgeted Income Statement
For the Upcoming Year
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year
Sales
Less: Cost of goods sold
Gross profit

Less: Operating expenses
Net income