Writing Project 2- Budgeted Income Staement(2).pdf G Q Buscar Writing Project -2 You are a Senior Managerial Accountant at Wild Water Sports Inc., a company that makes water sporting equipment. The company know that creating a budgeted income statement is important for the company financial position. Your boss has asked you to prepare a budgeted income statement for the first quarter based on the given information below. 40,000 55,000 45,000 $25 $15 Unit sales: January February March Unit sales price Cost of goods sold per unit Expenses: Commissions Rent Advertising Office salaries Depreciation Interest Tax rate 10.5% of sales $25,000/month 16% of sales $78,500/month $50,500/month 13% annually on a $290,000 note payable 40% Required: 1. Prepare a budgeted income statement for this first quarter. 2. Does it appear that the Company will remain solvent, or could the company be heading for a cash crisis? 3. Use the budgeted income statements from part 1 to recommend changes Wild Water Sports Inc should make to improve their revenue or cash flow. Explain