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

Question

North Company has completed all of its operating budgets. The sales budget for the year shows 51,100 units and total sales of $2,285,500. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $308,100. Income taxes are estimated to be $240,630.

Prepare a budgeted income statement for the year ending December 31, 2014.

NORTH COMPANY
Budgeted Income Statement
For the Year Ending December 31, 2014

NORTH COMPANY
Budgeted Income Statement
For the Year Ending December 31, 2014

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

$

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

$

Explanation / Answer

  Budgeted Income Statement

  for the year ending December 31, 2014. (in $ )

Sales 22,85,500 Less :-Cost of Goods Sold : (Unit Cost * Number of Units ) (23 * 51100 ) 11,75,300 Gross Profit 11,10,200 Less : Selling & Admin Expenses   3,08,100 Income from Operations 8,02,100 Less : Income Tax Expense 2,40,630 Net Income $ 5,61,470

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