Question

North Company has completed all of its operating budgets. The sales budget for the year shows 50,950 units and total sales of $2,429,400. The total unit cost of making one unit of sales is $22. Selling and administrative expenses are expected to be $308,700. Interest is estimated to be $12,720. Income taxes are estimated to be $220,600. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020. NORTH COMPANY Budgeted Income Statement

Answer 1

NORTH COMPANY
Budgeted Income Statement
December 31,
Sales		2,429,400
Cost of goods sold (50,950 x 22)		-1,120,900
Gross profit		1,308,500
Selling expenses & administrative expenses		-308,700
Operating profit		999,800
Interest expense		-12,720
Profit before tax		987,080
Income tax expense		-220,600
Net Income		766,480

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