 the sales so the sales we're gonna jump back to the sales budget and that's what we're gonna have the total sales we just don't jump back to step one sales budget that's gonna be line one of the budgeted income statement then we have the cost of goods sold calculation which of course we have calculated and we did that in the budgeted cost of goods sold so remember that's in the prior recording where we took a look at the cost of goods manufactured this number here which we needed in order to create the cost of goods sold calculation then we can of course take the cost of goods sold number and plug that into our budgeted income statement at this point then we're gonna have the gross profit that's gonna be the sales minus the cost of goods sold that will give us the gross profits calculation as normal then we're gonna have the operating expenses all other expenses here within the operating expenses we are going to have the sales commission and sales salary so we're gonna pick those numbers up by jumping back to the selling and selling expense budget so we have these two items we didn't total them up in this budget so we'd have to add them up so we got July August September for the sales commission and July August and September for the sales salary if we added these up and then added these up then we would come up with the 130 248 for the sales commission and the sale salary 10,005 all right then we have the general administrative salaries and the long-term note interest and we're gonna pull that from here so we got the general administrative this one we did total up for the 33,000 and the 15 we're just summing up the quarter the full quarter which is of course the 33 months in this case so here's the 33 and the 15 general administrative long term note interest then we have the short term note interest I'm just gonna pull that number in we did that on the cash flow statement and so you could pick it up from the statement of cash flows where we calculated the interest on the short term note and then if we sum these items up we're summing up the operating expenses so we pulled them into the enter column we if we add these up and pull them out to the outer column we have the total operating expenses of the 1888 68 and now we have the gross profit profit and the operating expenses we're gonna subtract those two out just as we normally would 255 335 minus the 1888 68 would give us the 66 467 that's income before taxes now we're gonna assume a tax rate of 35% we generally break out the taxes separately as separate light item even though they are an expense you know related to all the other types of expenses because taxes tend to distort the picture and we know that tax is very in relation to net income so we're usually gonna break that out at the bottom here so we're gonna take the 66467 we're gonna assume 0.35 35% tax rate and that will give us the tax 23 263 so there's the 23 263 then we'll take the income before taxes minus the taxes that will give us the net income the 43204 net income