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View History Bookmarks People Window Help 31%D Fri 1:05 AM nity Colle DMy Academic Requireme SAA STD DS.pdf Chapter 13 Homework Q Lumen OHM Assessment os//ohm.lumenlearning.com/assessment/showtest.php?action-skip&score-5 Applewood Company is a service based company. They are putting together their budgeted income statement for next year. They project their next year's budget based on prior year's results. Their prior year's income statement follows: Applewood Company Actual Income Statement For Prior Year Sales 883,375 Expenses: Sales commission expense Rent expense Advertising expense 97,171 24,000 89,941 206,000 Salaries expense 23,193 Payroll tax expense Depreciation 25,000 465,305 Total Expenses 418,070 Income before taxes 125,421 Income tax expense 292,649 Net Income/(Loss) X Show All

Answer 1

Applewood Company
Budgeted Income Statement
For current Year
Particulars	Computation	Amount	Amount
Sales	$883,375*1.07		$9,45,211
Expenses:
Sales commission expenses	$945,211.25*11%	$1,03,973
Rent expenses	$2,000*8 (+) $2,400*4	$25,600
Advertising expenses	$945,211.25*12%	$1,13,425
Salaries expenses	$206,000*1.03	$2,12,180
Payroll tax expenses	($103,973.24+212,180)*7.65%	$24,186
Depreciation	$25,0000	$25,000
Total expenses	Sum of all expenses		$5,04,364
Income before taxes	$945,211.25 - 504,364.31		$4,40,847
Income tax expenses	$440,846.94*30%		$1,32,254
Net Income/(Loss)	$440,846.94 - 132,254.08		$3,08,593