three months. Hanson believes short$-$term interest rates will be $10$ percent per year at the time of the equipment

purchases. If a loan is necessary, Davies$-$Lowry has decided it should be paid off by the end of the first quarter if

possible.

Intercoastal's board of directors has indicated an intention to declare and pay dividends of $$75,000$ on the last day of

each quarter.

The interest on any short$-$term borrowing will be paid when the loan is repaid. Interest on Intercoastal's bonds is paid

semiannually on January $31$ and July $31$ for the preceding six$-$month period.

Property taxes are paid semiannually on February $28$ and August $31$ for the preceding six$-$month period.

Required:

Prepare Intercoastal Electronics Company's master budget for the first quarter of $201$ by completing the following

schedules and statements.

Problem $9-44$ Part $7$

Prepare Intercoastal Electronics' budgeted income statement for the first quarter of $20$x$1.($Ignore income taxes.$)$