Argenta, Inc Prepare a Budgeted Income Statement for This First Quarter

Essay

Argenta, Inc. is preparing its master budget for the first quarter of its calendar year. The following forecasted data relate to the first quarter:
$\begin{array}{ll}\text { Unit sales: }\\ \text { January } & 40,000 \\ \text { February } & 55,000 \\ \text { March } & 50,000 \\\text { Unit sales price } & \$ 25 \\ \text { Cost of goods sold per unit } & \$ 13 \\\text { Expenses: }\\ \text { Commissions } & 10 \% \text { of sales } \\ \text { Rent } & \$ 20,000 / \text { month } \\ \text { Advertising } & 15 \% \text { of sales } \\ \text { Office salaries } & \$ 75,000 / \text { month } \\ \text { Depreciation } & \$ 50,000 / \text { month } \\\text {Interest }&\text {\( 15 \% \) annually on a \( \$ 250,000 \) note pavable}\\\text { Tax rate }&40\%\end{array}$

Prepare a budgeted income statement for this first quarter.