Question .1 {.5 Marks} Clark and Associates proyides accounting services. It is preparing its quarterly budgeted income statement for 2022. Ms. Clark anticipates that billable hours in the first quarter of 2022 will increase by 5% over the same quarter of the preceding year, and by 696 in the second quarter. There were 200 billable hours in the rst quarter of 2021, and 5m in the second quarter. Ms. Clark billed clients $200 per hour in 2021, and due to strong competition is unable to raise that rate for the foreseeable future. Salary expenses for both accountants and support staff are $20,000 plus 20% of revenue per quarter. Income tax is 30%. Other quarterly expenses are estimated to be as follows: Rent expense 54,500 Depreciation 200 Utilities expense 2,100 Miscellaneous expenses 5% of revenue Instructions Prepare a budgeted quarterly income statement for the first quarter of 2022. [Show computations]