Use the partial income statement generated in Problem 4 along with the following additional information to complete ABC Company’s forecasted income statement in Excel.

a. Rent expense is $1,000 per month. However, the landlord has indicated that rent will go up to $1,250 in the fourth quarter.

b. Depreciation expense is $2,250 per month and does not change throughout the year.

c. Salaries expense is $1,500 per month and is expected to go up by 10% in the second half of the year, when a new compensation plan will be implemented.

d. Utilities expense is $5,000 for the entire year and should be allocated to each month based on that month’s percentage of annual sales.

e. Interest expense is $500 per month.

f. Income tax is 25% of operating income less interest expense.

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Gross Sales % of Annual Sales Sales Returns & Allowances Net Sales Cost of Goods Sold Gross Margin Rent Expense Depreciation Expense Salaries Expense Utility Expense Operating Income Interest Expense Income Tax Expense Net Income ABC Company Monthly Income Statements Jan Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total $41,800 $43,890 $51,700 $61,600 $66,000 $78,100 $58,300 $58,300 $50,600 $40,700 $42,900 $34,100 $627,990 7.0% 7.3% 8.2% 9.7% 10.4% 12.3% 9.2% 9.2% 8.0% 6.4% 6.8% 5.4% 100.0% $418 $ 439 $ 517 $ 616 $ 660 $ 781 $ 583 $ 583 $ 506 $ 407 $ 429 $ 341 $ 6,280 Feb 51,183 60,984 65,340 77,319 57,717 57,717 50,094 40,293 42,471 33,759 621,710 30,710 36,590 39,204 46,391 34,630 34,630 30,056 24,176 25,483 20,255 373,026 23,087 23,087 20,038 16,117 16,988 13,504 248,684 41,382 43,451 24,829 26,071 16,553 17,380 20,473 24,394 26,136 30,928