Ouachita Manufacturing Company has asked you to prepare a budgeted income statement for your company for the upcoming year. You are to prepare the budget by quarters and in total for the year. The marketing department has prepared the attached sales estimates for you for the upcoming year. Additional information is also attached to help you to complete the budget. REQUIRED: (1) (2) Prepare a budgeted income statement, by quarters and in total, for the upcoming year. Round all amounts calculated to the nearest whole dollar. Assume that the company expects the commercial sales category to be 10% higher than estimated by the marketing department. Making this change and using the other information as given, prepare a budgeted income statement, by quarters and in total, for the upcoming year. Round all amounts calculated to the nearest whole dollar. OUACHITA MANUFACTURING COMPANY SALES ESTIMATES BY QUARTER FOR UPCOMING YEAR Quarter 1 Quarter 2 Quarter 3 $ 250,000 $ 266,000 $ 275,000 100,000 120,000 110,000 $ Commercial Sales Government Sales Quarter 4 300,000 115,000 OUACHITA MANUFACTURING COMPANY ADDITIONAL INFORMATION FOR PREPARATION OF BUDGETED INCOME STATEMENTS FOR UPCOMING YEAR (1) Gross margin is normally 54% of sales. (2) Advertising is expected to be $6,000 per quarter plus 1% of total sales. (3) Selling expenses are 10% of total sales. (4) Administrative expenses are expected to be 16.8% of gross margin. (5) General office expenses are expected to be 12% of gross margin. (6) The company's corporate income tax rate is 35%