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

Answer

FORTUNE INC Budgeted Income statement For Quarter Ended march 3). Amount (in ) Particulars Sales *(3800 +580wo + 48000)X25 3,600,000 Less" Cost of goods sold (14400 units X12) (1,728,000) Gross profit ss operating Expenses commission (3,600,00 *8%) 288.000 Rent (21000 x3) 63000 Advertising (3,600,000 x 15 %) 540,000 office salaries (74000x3) 222,000 Depreciation 52000x3 156,000 Interest (2400w X10%*3) 6000 (1275000) operating Income before tax 597,000 Less : Tax @ 40% (2388002 Income after tax $358200 Thank you any doubt If please comment.