Answer:
The budgeted net income for 2018 is : $195,300
Explanation:
Prepare the budgeted income statement for 2018 as follows :
Sales $760,000
Less Cost of Sales ($760,000 × 40%) ($304,000)
Gross Profit $456,000
Less Expenses :
Selling Expenses ($84,000)
General and administrative ($93,000)
Net Income before tax $279,000
Income tax expense ($279,000 × 30%) ($83,700)
Net Income for the year $195,300
Conclusion :
The budgeted net income for 2018 is : $195,300
