Question

North Company has completed all of its operating budgets. The sales budget for the year shows 50,320 units and total sales of $2,107,000. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $302,700. Interest is estimated to be $13,160. Income taxes are estimated to be $200,100.

Prepare a budgeted multiple-step income statement for the year ending December 31, 2020.

NORTH COMPANY Budgeted Income Statement choose the accounting period                                                          For the Quarter Ending December 31, 2020December 31, 2020For the Year Ending December 31, 2020
select an income statement item                                                          PurchasesIncome from OperationsTotal Operating ExpensesOperating ExpensesEnding InventorySalesGross ProfitBeginning InventorySelling and Administrative ExpensesIncome Before Income TaxesCost of Goods SoldNet Income / (Loss)Income Tax ExpenseInterest Expense		$enter a dollar amount
select an income statement item                                                          Gross ProfitIncome from OperationsInterest ExpenseTotal Operating ExpensesSalesBeginning InventoryIncome Before Income TaxesEnding InventorySelling and Administrative ExpensesNet Income / (Loss)Operating ExpensesCost of Goods SoldPurchasesIncome Tax Expense		enter a dollar amount
select a summarizing line for the first part                                                          Beginning InventoryIncome Before Income TaxesSelling and Administrative ExpensesOperating ExpensesIncome from OperationsCost of Goods SoldPurchasesGross ProfitSalesInterest ExpenseTotal Operating ExpensesIncome Tax ExpenseEnding InventoryNet Income / (Loss)		enter a total amount for the first part
select an income statement item                                                          Income Before Income TaxesIncome from OperationsTotal Operating ExpensesSalesNet Income / (Loss)Interest ExpenseCost of Goods SoldEnding InventoryBeginning InventoryPurchasesGross ProfitIncome Tax ExpenseOperating ExpensesSelling and Administrative Expenses		enter a dollar amount
select a summarizing line for the second part                                                          Cost of Goods SoldOperating ExpensesGross ProfitIncome from OperationsBeginning InventoryIncome Before Income TaxesTotal Operating ExpensesSalesInterest ExpensePurchasesNet Income / (Loss)Ending InventoryIncome Tax ExpenseSelling and Administrative Expenses		enter a total amount for the second part
select an income statement item                                                          Total Operating ExpensesIncome Tax ExpenseGross ProfitBeginning InventoryNet Income / (Loss)Income from OperationsEnding InventoryInterest ExpenseSelling and Administrative ExpensesCost of Goods SoldPurchasesOperating ExpensesSalesIncome Before Income Taxes		enter a dollar amount
select a summarizing line for the third part                                                          PurchasesGross ProfitCost of Goods SoldNet Income / (Loss)Total Operating ExpensesIncome Tax ExpenseOperating ExpensesBeginning InventorySalesIncome Before Income TaxesIncome from OperationsSelling and Administrative ExpensesEnding Inventory		enter a total amount for the third part
select an income statement item                                                          Operating ExpensesPurchasesNet Income / (Loss)Interest ExpenseSelling and Administrative ExpensesIncome from OperationsSalesIncome Before Income TaxesBeginning InventoryTotal Operating ExpensesGross ProfitIncome Tax ExpenseEnding InventoryCost of Goods Sold		enter a dollar amount
select a closing name for the budgeted income statement                                                          Interest ExpenseIncome Tax ExpenseCost of Goods SoldPurchasesNet Income / (Loss)Total Operating ExpensesGross ProfitBeginning InventoryOperating ExpensesSelling and Administrative ExpensesEnding InventoryIncome Before Income TaxesSalesIncome from Operations		$enter a total net income or loss amount

Answer 1

Answer:

NORTH COMPANY
Budgeted Income Statement
For the year ending December 31,2020
Net Sales	$2,107,000
Cost of goods sold [50,320 units x $ 23]	($1,157,360)
Gross profit	$949,640
Operating expenses:
Selling and administrative expenses	($302,700)
Operating income	$646,940
Other income(expenses):
Interest expense	($13,160)
Net income before income tax	$633,780
Income tax expense	($200,100)
Net income	$433,680