Answer:
Brainard Corporation
1. The company's budgeted gross profit for the upcoming quarter is $225,000. 
2. The company's budgeted income before taxes for the upcoming quarter is $70,000. 
3. The company's budgeted income taxes for the upcoming quarter are $28,000. 
4. The company's budgeted net income for the upcoming quarter is $42,000.
Explanation:
a) Data and Calculations:
Budgeted Income Statement for the quarter:
Budgeted sales                                       $400,000
Cost of goods sold:
Beginning inventory                $15,000
Cost of goods manufactured  185,000
Cost of goods available       $200,000
less Ending inventory               25,000    175,000
Gross profit                                            $225,000
Selling and administrative    $148,000
Interest expense                        7,000    155,000
Income before tax                                   $70,000
Income taxes (40%)                                   28,000
Net income                                              $42,000