Ask Question
28 January, 10:00

Brief Exercise 22-08 North Company has completed all of its operating budgets. The sales budget for the year shows 50,810 units and total sales of $2,487,100. The total unit cost of making one unit of sales is $24. Selling and administrative expenses are expected to be $306,100. Interest is estimated to be $12,010. Income taxes are estimated to be $224,500. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020.

+2
Answers (1)
  1. 28 January, 11:45
    0
    The preparation of budgeted Income statement is shown below:-

    Budgeted Income statement

    For the period ending 31 Dec 2020

    Sales $2,487,100

    Less: Cost of goods sold $1,219,440

    ($24 * 50,810)

    Gross Profit $1,267,660

    Less: Selling and administrative expenses $306,100

    Income from operations $961,560

    Less : Interest expense $12,010

    Income before Income taxes $949,550

    Less: Income tax expense $224,500

    Net Income/Loss $725,050
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Brief Exercise 22-08 North Company has completed all of its operating budgets. The sales budget for the year shows 50,810 units and total ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers