Question

North Company has completed all of its operating budgets. The sales budget for the year shows 50,220 units and total sales of $2,190,100. The total unit cost of making one unit of sales is $24. Selling and administrative expenses are expected to be $305,300. Interest is estimated to be $10,000. Income taxes are esti Prepare a budgeted multiple-step income statement for the year ending December 31, 2017.

Answer 1

The income taxes figure of $203,000 is missing from the information provided:

The net income from the budgeted income statement is $466,520

Step-by-step explanation:

The multiple step income statement differentiates operating revenue from non-operating revenue,operating expenses from one off non-operating expenses as operating gains and losses from non-operating ones

North Company budgeted income statement

Total sales revenue $2,190,100

Variable costs of sale($24*50,220) ($1,205,280)

Gross profit $984,820

Selling and administrative expenses ($305,300)

Profit before interest & taxes $678,940

Interest expense ($10,000)

Income taxes ($203,000)

Net income $466,520