Question

Book Print 9 Want po Budgeted income Statement with CVP Madison Booksellers is planning a budget for 2018. The estimate of sales revenue is 14,000,000 and of cost of goods is 70 percent of sales revenue Depreciation on the office building and furis budgeted a $150.000 Salaries and w e are budgeted at 250.000. Advertising has been budgeted at 25.000 and its should amount to $175.000 income taxis estimated at 40 percent of operating income Required a. Prepare a budgeted income statement for 2018 Use a negative in only to indicate net loss for income. Otherwise, do not use negative with your answers Mainar மாங்காயாக Budgedinme Statemen Assuming management des an alte tax income of 1262.500 determine the necessary sales volume

Answer 1

ANSWER

Income statement

Sales		4000000
Cost of goods sold		2800000
Gross profit		1200000
Sales and administrative expense
Depreciation	150000
Salaries and wages	250000
Advertising	225000
Utilities	175000	800000
Net income before taxes		400000
Income taxes		160000
Net income		240000

2) Income before taxes = 262500*100/60 = 437500

Required sales volume = (800000+437500)/0.30 = $4125000

_____________________________________________

If you have any query or any Explanation please ask me in the comment box, i am here to helps you.please give me positive rating.

*****************THANK YOU**************