The results of operations for the Ceradyne Bug Spray Manufacturing Company for the fourth quarter of 2017 were as follows (in thousands):

Sales of bug spray				$560,000
Less variable cost of goods sold				313,600
Contribution margin				246,400
Less fixed bug removal costs		$78,400
Less fixed selling and administrative expenses		33,600		112,000
Income before taxes				134,400
Less taxes on income				53,760
Net income				$80,640

Note: Ceradyne uses the variable costing method. Thus, only variable costs are included in the cost of goods sold. Fixed costs are charged to expense in the period incurred. The companys balance sheet as of the end of the fourth quarter of 2017 was as follows (in thousands):

Assets:
	Cash				$	28,200
	Accounts receivable					224,000
	Total current assets					252,200
	Fixtures and equipment		$125,000
	Less accumulated depreciation		70,000			55,000
Total assets					$	307,200
Liabilities and owners equity:
	Accounts payable				$	75,264
	Retained earnings					125,636
	Common stock					106,300
	Total liabilities and owners equity				$	307,200

Additional information:

1.		Sales and variable costs of sales are expected to increase by 4 percent in the next quarter.
2.		All sales are on credit with 60 percent collected in the quarter of sale and 40 percent collected in the following quarter.
3.		Variable cost of sales consists of 40 percent materials, 41 percent direct labor, and 19 percent variable overhead. Materials are purchased on credit. 40 percent are paid for in the quarter of purchase, and the remaining amount is paid for in the quarter after purchase. There is no inventory. Also, direct labor and variable overhead costs are paid in the quarter the expenses are incurred.
4.		Fixed bug removal costs (other than $4,790 of depreciation expense) are expected to increase by 1.50 percent. Fixed bug removal costs requiring payment are paid in the quarter they are incurred.
5.		Fixed selling and administrative costs (other than $2,780 of depreciation expense) are expected to increase by 3 percent. Fixed selling and administrative costs requiring payment are paid in the quarter they are incurred.
6.		The tax rate is expected to be 40 percent. All taxes are paid in the quarter they are incurred.
7.		No purchases of fixtures or equipment are expected in the first quarter of 2018.

Prepare a budgeted income statement for the first quarter of 2018.

Prepare a budgeted statement of cash budget for the first quarter of 2018.

Prepare a budgeted balance sheet as of the end of the first quarter of 2018.