Question

Brief Exercise 23-8 North Company has completed all of its operating budgets. The sales budget for the year shows 50,000 units and total sales of $2,250,000. The total unit cost of making one unit of sales is $25. Selling and administrative expenses are expected to be $300,000. Interest is estimated to be $10,000. Income taxes are estimated to be $200,000. Prepare a budgeted multiple-step income statement for the year ending December 31, 2017. NORTH COMPANY Budgeted Income Statement

Answer 1

NORTH COMPANY Budgeted Income Statement For the Year Ending December. 31,2017 Sales $2,250,000 cost of goods sold $1,250,000 Gross Profit $1,000,000 Selling and administrative Expenses $ 300,000 Income from operations $ 700,000 Interest expenses $ 10,000 Income before Income taxes $ 690,000 Income Tax Expenses $ 200,000 Net Income $ 490,000 Notes: Cost of Goods sold = 50.000*$25 = $1,250,000