om Custriers and expected payments for purchases of inventory Question 8 Clark and Associates provides accounting services. It is preparing its quartery Duagete in statement for 2016. Ms. Clark anticipates that billable hours in the first quarter of 2016 W increase by 5% over the same quarter of the preceding year, and by 6% in the second quarter. There were 700 billable hours in the first quarter of 2015, and 600 in the second quarter. MS. Clark billed clients $200 per hour in 2015, and due to strong competition is unable to raise ma rate for the foreseeable future. Salary expenses for both accountants and support staff are $20,000 plus 70% of revenue per quarter. Income tax is 30%. Other quarterly expenses are estimated to be as follows: Rent expense $4,500 Depreciation 700 Utilities expense 2,100 Miscellaneous expenses 5% of revenue Instructions Prepare a budgeted quarterly income statement for the first quarter of 2016. (Show computations.) 6