Smith Labs performs a specialty lab test for local companies for $$50$ per test. For the upcoming quarter, Smith Labs is projecting the following sales:

$\backslash$table$[[,$January,February,March,$],[$Number of lab tests,dots,$5,500,4,200,5,900]]$

The budgeted cost of performing each test is $$25.$ Operating expenses are projected to be $$56,000$ in January, $$54,000$ in February, and $$60,000$ in March. Smith 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.

Smith Labs

Budgeted Income Statement

For the Quarter Ended March $31$

Sales

Less: Cost of goods sold

Gross profit

Less: Operating expenses