Ask Question
25 June, 12:47

North Company has completed all of its operating budgets. The sales budget for the year shows 50,160 units and total sales of $2,228,200. The total unit cost of making one unit of sales is $24. Selling and administrative expenses are expected to be $309,200. Interest is estimated to be $12,710. Income taxes are estimated to be $226,800. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020.

+4
Answers (1)
  1. 25 June, 16:39
    0
    North Company

    Budgeted multiple-step income statement for the year ending December 31, 2020

    Sales of $2,228,200

    Cost of Goods Sold ($24 x 50,160) ($1,203,840)

    Gross Profit $1,024,360

    Operating Expenses:

    Selling and administrative expenses ($309,200)

    Operating Income $715,160

    Non-Operating Expenses:

    Interest Expense ($12,710)

    Operating Income before tax $702,450

    Income taxes ($226,800)

    Operating Income after Tax $475,650

    Explanation:

    Multi-step Income statement segregate the Operating Income and Expenses from non operating Income and Expense. It shows the gross profit and net operating income separately.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “North Company has completed all of its operating budgets. The sales budget for the year shows 50,160 units and total sales of $2,228,200. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers