Question

North Company has completed all of its operating budgets. The sales budget for the year shows 50,820 units and total sales of $2,391,000. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $303,100. Interest is estimated to be $13,060. Income taxes are estimated to be $220,400. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020.

Answer 1

Answer:

We are given all the details of the activity and the results of those activities, like the cost and revenue.

The multi step income statement shall be as follows:

Income:

Revenue from Sales                             = $2,391,000

Other Income                                         =   $0

Total Revenue                                       = $2,391,000

Expenses:

Cost of goods sold                                = $1,168,860

$23 $\times$ 50,820

Selling and Administrative                   = $303,100

Interest Expense                                    = $13,060

Total Expenses                                     = $1,485,020

Net Income before Taxes                    = $905,980

Less: Taxes on income                         = $220,400

Income from Continuing Operations = $685,580