Question

Calgary Industries is preparing a budgeted income statement for 2015 and has accumulated the following information. Predicted sales for the year are $750,000 and cost of goods sold is 40% of sales. The expected selling expenses are $83,000 and the expected general and administrative expenses are $92,000, which includes $25,000 of depreciation. The companies income tax rate is 30%. The budgeted net income for 2015 is:

Answer 1

Answer:

$192,500

Explanation:

budgeted net income statement

Net sales                   $750,000

COGS                       ($300,000)

Gross profit               $450,000

Selling expenses       ($83,000)

Adm. expenses         ($92,000)

EBIT                           $275,000

Income taxes             ($82,500)

Net income                $192,500