The following budget information is available for Sluyter Corp. for May 2011:

• Sales are expected to be $400,000. All sales are on account, and a provision for bad debts is accrued monthly at 3 percent of sales.

• Inventory was $35,000 on April 30 and an increase of $10,000 is planned for May.

• All inventory is marked to sell at cost plus 60 percent.

• Estimated cash disbursements for selling and administrative expenses for the month are $55,000.

• Depreciation for May is projected at $8,000.

Prepare a budgeted income statement for Sluyter Corp. for May 2011.