Answer:
A budgered income statement was prepared for North company for the year ending December 31st 2020.
Explanation:
Solution
The NORTH COMPANY
Budgeted Income Statement
For the year December 31st, 2020 Ended
Particulars Amount
Sales $2,414,100
Less: Cost of goods sold
[50,220 Units x $23.00 per unit] -11,55,060
The Gross Profit 12,59,040
Less: Selling and administrative expenses -3,09,700
Earnings before interest and taxes 9,49,340
Less: Interest Expenses -10,260
The earnings before taxes 9,39,080
Less: Income Taxes -2,26,200
The Net Income 7,12,880
The net income for the NORTH COMPANY for the year ended December 31st 2020 is $7,12,880
