We really need to get this new material-nandling equipment in operation just after the new year begins. I nope we can finance it largely with cash and marketable securities, but if necessary we can get a short-term loan down at MetroBank." This statement by Beth Davies-Lowry, president of Intercoastal Electronics Company, concluded a meeting she had called with the firm's top management. Intercoastal is a small, rapidly growing wholesaler of consumer electronic products. The firm's main product lines are small kitchen appliances and power tools. Marcia Wilcox, Intercoastal's General Manager of Marketing, has recently completed a sales forecast. She believes the company's sales during the first quarter of 20x1 will increase by 10 percent each month over the previous month's sales. Then Wilcox expects sales to remain constant for several months. Intercoastal's projected balance sheet as of December 31, 20x0, is as follows: Cash Accounts receivable Marketable securities Inventory Buildings and equipment (net of accumulated depreciation) Total assets Accounts payable Bond interest payable Property taxes payable Bonds payable (10%; due in 206) Common stock Retained earnings Total liabilities and stockholders' equity $ 45,000 360,000 15,000 192,500 600,000 $1,212,500 $ 220,500 13,750 6,000 330,000 500,000 142,250 $1,212,500 Jack Hanson, the assistant controller, is now preparing a monthly budget for the first quarter of 201. In the process, 7. Property taxes are paid semiannually on February 28 and August 31 for the preceding six-month period. 7. Prepare Intercoastal Electronics' budgeted income statement for the first quarter of 201. (Ignore income taxes.) Budgeted Income Statement For the First Quarter of 20x1 Selling and administrative expenses: Total selling and administrative expenses