North Company has completed all of its operating budgets. The sales budget for t
ID: 2427613 • Letter: N
Question
North Company has completed all of its operating budgets. The sales budget for the year shows 51,000 units and total sales of $2,262,400. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $304,000. Income taxes are estimated to be $235,620.
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
Answer:
Income Statement For the year Ended December 31,2014 Particulars Amount ($) Sales 2262400 Less: Variable cost 1173000 Contribution margin 1089400 Less: Selling and administrative expenses 304000 Earning befor tax 785400 Less: Income tax expense 235620 Net income 549780Related Questions
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