9#4

Monachino

Labs performs a specialty lab test for local companies for

$56

per test. For the upcoming quarter,

Monachino

Labs is projecting the following sales:

	January	February	March
Number of lab tests. . . .	5,000	4,800	5,200

.....

The budgeted cost of performing each test is

$31.

Operating expenses are projected to be

$61,000

in January,

$58,000

in February, and

$59,000

in March.

Monachino

Labs is subject to a corporate tax rate of

30%.

Requirement

Prepare a budgeted income statement for the first quarter, with a column for each month and for the quarter.

Prepare the budgeted income statement by first calculating the operating income, then calculate the net income.

Monachino Labs
Budgeted Income Statement
For the Quarter Ended March 31
	January	February	March	Quarter
Sales
Less: Cost of goods sold
Gross profit
Less: Operating expenses
Operating income

Less: Income tax expense
Net income