The Northeast Regional Division of Concord Corp. has been requested to prepare a quarterly budgeted income statement for $2022.$ The regional manager expects that sales in the first quarter of $2022$ will increase by $10\%$ over the same quarter of the preceding year and will then increase by $5\%$ for each succeeding quarter in $2022.$

The corporate head office has requested that the regional manager maintain an inventory in dollars equal to $20\%$ of the next quarter's sales. Quarterly purchases average $55\%$ of quarterly sales. Budgeted ending inventory on December $31,2021$ is $$179,000,$ Quarterly salaries are $$20,600$ plus $5\%$ of sales. All salaries are classified as sales salaries. Other quarterly expenses are estimated to be as follows:

Rent expense

$$25,500$

Depreciation on office equipment $$11,500$

Utilities expense $$3,700$

Miscellaneous expenses $2\%$ of sales

The income statement for the first quarter of $2021$ was as follows:

$\backslash$table$[[\backslash$table$[[$Income Statement$],[$For the Quarter Ended March $31,2021]],],[$Sales$,$$$700,000$