North Company has completed all of its operating budgets. The sales budget for the year shows 50,600 units and total sales of $2,317,800. The total unit cost of making one unit of sales is $22. Selling and administrative expenses are expected to be $304,000. Income taxes are estimated to be $270,180. Required:Prepare a budgeted income statement for the year ending December 31, 2014.

Question

Business

Jamar Phillips

14 December, 02:18

North Company has completed all of its operating budgets. The sales budget for the year shows 50,600 units and total sales of $2,317,800. The total unit cost of making one unit of sales is $22. Selling and administrative expenses are expected to be $304,000. Income taxes are estimated to be $270,180. Required:Prepare a budgeted income statement for the year ending December 31, 2014.

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Dante Mays · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

The sales budget for the year shows 50,600 units and total sales of $2,317,800.

The total unit cost of making one unit of sales is $22.

Selling and administrative expenses are expected to be $304,000.

Income taxes are estimated to be $270,180.

Income statement:

Sales = 2,317,800

COGS = (22*50,600) = (1,113,200)

Gross profit = 1,204,600

Selling and administrative = (304,000)

Tax = (270,180)

Net operating profit = $630,420