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

Answer:

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

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

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