Using this information, prepare a Budgeted Income Statement for December.

7. The Assembly Company, a manufacturing firm, has budgeted its activity for December according to the following information: O Sales at $1,000,000, all for cash. Merchandise Inventory on November 30 was $400,000. The cash balance at December 1 was $50,000. Selling and administrative expenses are budgeted at $80,000 for December and are paid for in cash. Budgeted depreciation for December is $40,000. The planned merchandise inventory on December 31 is $350,000. The cost of goods sold represents 70% of the selling price. Interest expense during December is $10,000. All purchases are paid in cash