Question

Brief Exercise 9-8 North Company has completed all of its operating budgets. The sales budget for the year shows 50,380 units and total sales of $2,253,500. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $304,800. Interest is estimated to be $13,420. Income taxes are estimated to be $216,200. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020. NORTH COMPANY Budgeted Income Statement $ $ Click if you would like to Show Work for

Answer 1

NORTH COMPANY
Budgeted Income Statement
For the year ended
Budgeted sales	$ 2,253,500
Less: Cost of goods sold ($23*50,380)	$ 1,158,740
Gross profit	$ 1,094,760
Less: Estimated Selling and administrative expenses	$     304,800
Income from operations	$     789,960
Less: Interest expenses	$        13,420
Income before income tax	$     776,540
Income tax expense	$     216,200
Net income	$     560,340

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