B&B, Inc. is preparing its master budget for the first quarter of its calendar year. The following forecasted data relate to the first quarter:

Unit sales:
January	40,000
February	55,000
March	50,000
Unit sales price	$25
Cost of goods sold per unit	$13
Expenses:
Commissions	10% of sales
Rent	$20,000/month
Advertising	15% of sales
Office salaries	$75,000/month
Depreciation	$50,000/month
Interest	15% annually on a $250,000 note payable
Tax rate	40%

Prepare a budgeted income statement for this first quarter.