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6 August, 06:22

North Company has completed all of its operating budgets. The sales budget for the year shows 50,000 units and total sales of $2,250,000. The total unit cost of making one unit of sales is $25. Selling and administrative expenses are expected to be $300,000. Interest is estimated to be $10,000. Income taxes are estimated to be $200,000. Prepare a budgeted multiple-step income statement for the year ending December 31, 2017.

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  1. 6 August, 07:09
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    Sales 2,250,000

    variable cost 1,250,000

    25 x 50,000

    Gross Profit 1,000,000

    Fixed Cost

    Selling & Administrative 300,000

    Operating income 700,000

    interest expense

    10,000

    non - controllable expenses 10,000

    non-controllable income 690,000

    income taxes 200,000

    net income 490,000

    Explanation:

    the interest expense is not part of the operating cost, those cost are not part of the business activity. It is on the non-controllable expenses
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