The Moore Distributor Company Inc. has just received a franchise to distribute

The Moore Distributor Company Inc. has just received a franchise to distribute dishwashers. The company started business on January 1 19A with the
following assets:

Cash

$45000

Inventory

94000

Warehouse office and delivery facilities and equipment

80000

All facilities and equipment have a useful life of 20 years and no residual value. First-quarter sales are expected to be $360000 and should be doubled in
the second quarter. Third-quarter sales are expected to be $1080000. One percent of sales are considered to be uncollectible. The gross profit margin
should be 30 percent. Variable selling expenses (except uncollectible accounts) are budgeted at 12 percent of sales and fixed selling expenses at $48000

per quarter exclusive of depreciation. Variable administrative expenses are expected to be 3

percent of sales and fixed administrative expenses should total $34200 per quarter exclusive

of depreciation. Prepare a budgeted income statement for the second quarter of 19A.

(CGA adapted)