Smith Labs performs a specialty lab test for local companies for $45 per test. For the upcoming quarter, Smith Labs is projecting the following sales: The budgeted cost of performing each test is $20. Operating expenses are projected to be $58,000 in January, $51,000 in February, and $64,000 in March. Smith Labs is subject to a corporate tax rate of 30%. Requirement Prepare a budgeted income statement for the first quarter, with a column for each month and for the quarter. January February March Number of lab tests 5,200 4,000 5,600 Prepare the budgeted income statement by first calculating the operating income, then calculate the net income. Smith Labs Budgeted Income Statement For the Quarter Ended March 31 January February March Quarter Sales January February March Quarter Sales Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Income tax expense Net income