Question

Check my work Exercise 20-34 Budgeted income statement LO P3 10 points Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are forecasted at 38,000 for January, 58,000 for February, and 48,000 for March. Cost of goods sold is $12 per unit. Other expense information for the first quarter follows. eBook Hint Print Commissions Rent Advertising office salaries Depreciation Interest Tax rate 8% of sales dollars $ 21,000 per month 15% of sales dollars $ 74,000 per month $ 52,000 per month 10% annually on a $240,000 note payable 40% References Prepare a budgeted income statement for this first quarter. (Round your final answers to the nearest whole dollar)

Answer 1

Budgeted income statement

Sales		3600000
Cost of goods sold		1728000
Gross profit		1872000
Operating expense
Commission expense	288000
Rent expense	63000
Advertising expense	540000
Office salaries expense	222000
Depreciation expense	156000
Interest expense	6000
Total operating expense		1275000
Income before tax		597000
Income tax expense		238800
Net income		358200