1. The data shown were obtained from the financial records of Italian Exports, Inc., for March:

   Estimated Sales	$590,000
   Sales	567,925
   Purchases	294,831
   Ending Inventory*	10%
   Administrative Salaries	50,320
   Marketing Expense**	5%
   Sales Commissions	2%
   Rent Expense	7,300
   Depreciation Expense	900
   Utilities	2,700
   Taxes***	15%

   *of next month's sales

   **of estimated sales

   ***of income before taxes

   Sales are expected to increase each month by 10%.

   Prepare a budgeted income statement. Round your answers to the nearest dollar.

   Italian Exports, Inc.
   Budgeted Income Statement
   For the Month Ending Mar. 31, 2020
   Sales	$
   Cost of Goods Sold
   Beginning Inventory	$
   Purchases
   Cost of Goods Available for Sale	$
   Ending Inventory
   Cost of Goods Sold	$
   Gross Profit
   Operating Expenses
   Administrative Salaries	$
   Marketing Expenses
   Sales Commissions
   Rent Expense
   Depreciation Expense
   Utilities
   Total Operating Expenses	$
   Income From Operations	$
   Income Tax Expense
   Net Income	$

   Feedback

   Beginning inventory uses the ending inventory percentage and estimated sales to determine the beginning inventory amount. Apply the other percentages as applicable to determine the required amounts as specified.