Question

Check my work Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year 840 s 2,140 $ 1,700 $ 85 $ 225,000 $ 30,000 Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement

Answer 1

Answer:

Preparation of Company's budgeted income statement for the year:

Gig Harbor Boating

Budgeted Income Statement

Particulars	Amount
Budgeted Sales (840 Units x $2,140)	$1,797,600
Purchase cost (840 Units x $1,700)	($1,428,000)
Variable selling & administration expenses (840 Units x $85)	($71,400)
Fixed selling & administrative expenses	($225,000)
Interest expenses for the year	($30,000)
Budgeted Income	$43,200

Therefore, Budgeted Income for the year is $43,200.