the northeast regional divisij of union corp. has been requested to prepare a quarterly budgeted income statement for 2020. the regional manager expects that sales in the first quarter of 202 will rise by 10% over the same quarter of the preceding year and will increase by 5% for each succeeding quarter in 2020.

the corporate head office has requested that the regional manager maintain an inventory in dollars equal to 25% of the next quaters sales. Quarterly purchases average 55% of quarterly sales. budgeted ending inventory on december 31 2019 is 176000. quarterly salaries are 20000 plus 5% of all sales. all salaries are classified as sales salaries. other quarterly expenses are estimated as follows.

Prepare a budgeted quarterly income statement in tabular form for the first quarter of 2020

Rent expense Depreciation on office equipment Utilities expense Miscellaneous expenses $24,000 $12,000 $3,600 2% of sales The income statement for the first quarter of 2019 was as follows: Income Statement For the Quarter Ended March 31, 2019 Sales Cost of goods sold Gross profit Operating expenses $720,000 396,000 324,000 Sales salaries Rent expense Depreciation Utilities Miscellaneous $52,000 24,000 12,000 3,600 12,800 Total operating expenses 104,400 $219,600 Net income