North Company has completed all of its operating budgets. The sales budget for the year shows 50,180 units and total sales of $2,273,600. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $301,900. Interest is estimated to be $10,240. Income taxes are estimated to be $214,000. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020.

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Business

Jamir Hansen

5 March, 12:56

North Company has completed all of its operating budgets. The sales budget for the year shows 50,180 units and total sales of $2,273,600. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $301,900. Interest is estimated to be $10,240. Income taxes are estimated to be $214,000. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020.

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Jude Erickson · Answer 1

income statement for the year ending December 31, 2020

Sales Revenue $2,273,600

Less Cost of Sales (50,180 units * $23) ($1,154,140)

Gross Profit $1,119,460

Less Operating Expenses:

Selling and administrative ($301,900)

Operating Income $817,560

Less Non - Operating Expenses:

Finance Cost - Interest ($10,240)

Income tax Expense ($214,000)

Net Income / (Loss) $593,320

Explanation:

A multi-step Income statement presents separately Income derived from Primary Activities of the entity known as Operating Income. When other Secondary Activities are added, the result gives us the Net Income for the period.