Pargo Company is preparing its budgeted income statement for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 1,300,000 units. Quarterly sales are 20%, 24%, 23%, and 33%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 10% higher than the budgeted sales for the first quarter of 2020. Production. Management desires to maintain the ending finished goods inventories at 19% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $11 per pound. Management desires to maintain raw materials inventories at 20% of the next quarter's production requirements. Assume the production requirements for first quarter of 2021 are 491,000 pounds. Pargo budgets 0.3 hours of direct labor per unit, labor costs at $11 per hour, and manufacturing overhead at $18 per direct labor hour. Its budgeted selling and administrative expenses for 2020 are $6,699,000. Prepare the budgeted multiple-step income statement for 2020. (Ignore income taxes.) Sales PARGO COMPANY Budgeted Income Statement For the Year Ending December 31, 2020 Cost of Goods Sold Gross Profit 39000000 Selling and Administrative Expenses 6699000 i Net Income (Loss)