Barrett Labs performs a specialty lab test for local companies for $52 per test. For the upcomingquarter, Barrett Labs is projecting the followingsales:

January February March

Number of lab tests. . . .

5,400 4,500 5,500

The budgeted cost of performing each test is $25. Operating expenses are projected to be $61,000 inJanuary, $54,000 inFebruary, and $64,000 in March. Barrett Labs is subject to a corporate tax rate of 30%.

make a budgeted income statement for the firstquarter, with a column for each month and for the quarter.

Barrett 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