Prepare the budgeted multiple$-$step income statement for the first $6$ months. $($Round intermediate calculations to $2$ decimal places and final answer to $0$ decimal places, e$.$g$.1,255.)$

IVANHOE FARM SUPPLY COMPANY Budgeted Income Statement

For the Six Months Ending June $30,2025$

Selling and Administrative Expenses

Income from Operations

Income Before Income Tax

$\backslash$$ Current Attempt in Progress

Ivanhoe Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first $2$ quarters of $2025.$

$1.$ Sales: quarter $\backslash (1,28,400\backslash )$ bags; quarter $\backslash (2,42,200\backslash )$ bags. Selling price is $\backslash (\backslash$$ $62\backslash )$ per bag.

$2.$ Direct materials: each bag of Snare requires $5$ pounds of Gumm at a cost of $\backslash (\backslash$$ $4\backslash )$ per pound and $6$ pounds of Tarr at $\backslash (\backslash$$ $1\mathrm{.}50\backslash )$ per pound.

$3.$ Desired inventory levels:

$4.$ Direct labor: direct labor time is $15$ minutes per bag at an hourly rate of $\backslash (\backslash$$ $16\backslash )$ per hour.

$5.$ Selling and administrative expenses are expected to be $\backslash (15\backslash \%\backslash )$ of sales plus $\backslash (\backslash$$ $176,000\backslash )$ per quarter.

$6.$ Interest expense is $\backslash (\backslash$$ $100,000\backslash )$ for the $2$ quarters.

$7.$ Income taxes are expected to be $20\backslash \%$ of income before income taxes.

Your assistant has prepared two budgets: $(1)$ the manufacturing overhead budget shows expected costs to be $125\backslash \%$ of direct labor cost, and $(2)$ the direct materials budget for Tarr shows the cost of Tarr purchases to be $\backslash$$$299,000$ in quarter $1$ and $\backslash$$$427,500$ in quarter $2.$

$($Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.$)$