Paige Company has completed all of its operating budgets. The sales budget for t

Question

Paige Company has completed all of its operating budgets. The sales budget for the year shows 50,000 units and total sales of $2,000,000. The total unit cost of making one unit of sales is $22. Selling and administrative expenses are expected to be $300,000. Income taxes are estimated to be $150,000. Prepare a budgeted income statement for the year ending December 31, 2011. (Enter all amounts as positive amounts and subtract where necessary.)

PAIGE COMPANY
Budgeted Income Statement

For the Year Ending December 31, 2011
$








Net income

$

Explanation / Answer

PAIGE COMPANY
Budgeted Income Statement

For the Year Ending December 31, 2011
                                                                          $

Sales Revenue                                                2,000,000

Less: Cost of Goods Sold (50000 x 22)              (1,100,000)

Gross income                                                       900,000

Less: Selling and Admin Expenses                        (300,000)

Net income before tax                                         600,000

Income Tax                                                         (300,000)

Net Income                                                          300,000

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