. Operating Budgets: Budgeted Income Statement Combines the information of all the operating budgets. Income Statement: Sales - COGS Gross Profit - Operating Expenses Income Before Taxes Tax Expense Net Income Example: Sparky Company Sparky's tax rate is 35%. Using the other Operating Budgets, prepare Sparky's Quarterly and Yearly Budgeted Income Statement Sparky Company Budgeted Income Statement For the Year Ending December 31, 201xx Q1 Q2 Q3 04 3,000 3.500 4,000 4,500 Expected unit sales Year 15,000 Sales (S75) S 225,000 $262,500 $300,000 $337,500 $1,125,000 Less: COGS ($56.70) $ 170,100 S198,450 $226,800 $255,150 $ 850,500 Gross Profit $ 54,900 $ 64,050 $ 73,200 $ 82,350 $274,500 Less: Operating Expenses $45,000 $47,500 $50,000 $52,500 $195,000 Income Before Taxes $ 9,900 $ 16,550 $ 23,200 $ 29,850 $ 79,500 Less: Tax Expense (35%) S 3,465 $ 5,793 $ 8,120 $ 10,448 S 27,825 Net Nincome S 6,435 S 10.758 $ 15.080 $ 19,403 S 51.675 . Operating Budgets: Budgeted Income Statement Combines the information of all the operating budgets. Income Statement: Sales - COGS Gross Profit - Operating Expenses Income Before Taxes Tax Expense Net Income Example: Sparky Company Sparky's tax rate is 35%. Using the other Operating Budgets, prepare Sparky's Quarterly and Yearly Budgeted Income Statement Sparky Company Budgeted Income Statement For the Year Ending December 31, 201xx Q1 Q2 Q3 04 3,000 3.500 4,000 4,500 Expected unit sales Year 15,000 Sales (S75) S 225,000 $262,500 $300,000 $337,500 $1,125,000 Less: COGS ($56.70) $ 170,100 S198,450 $226,800 $255,150 $ 850,500 Gross Profit $ 54,900 $ 64,050 $ 73,200 $ 82,350 $274,500 Less: Operating Expenses $45,000 $47,500 $50,000 $52,500 $195,000 Income Before Taxes $ 9,900 $ 16,550 $ 23,200 $ 29,850 $ 79,500 Less: Tax Expense (35%) S 3,465 $ 5,793 $ 8,120 $ 10,448 S 27,825 Net Nincome S 6,435 S 10.758 $ 15.080 $ 19,403 S 51.675