The Northeast Regional Division of Union Corp. has been requested to prepare a quarterly budgeted income statement for 2012. The regional manager expects that sales in the first quarter of 2012 will increase by 10% over the same quarter of the preceding year and will then increase by 5% for each succeeding quarter in 2012. The corporate head office has requested that the regional manager maintain an inventory in dollars equal to 25% of the next quarter's sales. Quarterly purchases average 55% of quarterly sales. Budgeted ending inventory on December 31, 2011 is $176,000. Quarterly salaries are $20,000 plus 5% of sales. All salaries are classified as sales salaries. Other quarterly expenses are estimated to be as follows: Rent expense $24,000 Depreciation on office equipment $12,000 Utilities expense $3,600 Miscellaneous expenses 2% of sales The income statement for the first quarter of 2011 was as follows: Income Statement For the Quarter Ended March 31, 2011 Sales $640,000 Cost of goods sold 352,000 Gross profit 288,000 Operating expenses Sales salaries $52,000 Rent expense 24,000 Depreciation 12,000 Utilities 3,600 Miscellaneous 12,800 Total operating expenses 104,400 Net income $183,600 Instructions Prepare a budgeted quarterly income statement in tabular form for the first quarter of 2012. (Show computations.)