Brief Exercise 21-8 North Company has completed all of its operating budgets. Th

Question

Brief Exercise 21-8

North Company has completed all of its operating budgets. The sales budget for the year shows 50,300 units and total sales of $2,207,100. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $301,300. Income taxes are estimated to be $224,670.

Prepare a budgeted income statement for the year ending December 31, 2014.

NORTH COMPANY
Budgeted Income Statement
For the Year Ending December 31, 2014

NORTH COMPANY
Budgeted Income Statement
For the Year Ending December 31, 2014

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

$

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

Beginning InventoryCost of Goods SoldEnding InventoryGross Profit/(Loss)Income Before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income/(Loss)Operating ExpensesPurchasesSalesSelling and Administrative ExpensesTotal Operating Expenses

$

Explanation / Answer

North Company (All amounts in $) Budgeted Income Statement for the year ended December 31,2014 Sales 2207100 Cost of Goods Sold 1156900 Gross Margin 1050200 Selling and Administrative Expenses 301300 Net Income before Taxes 748900 Income Taxes 224670 Net Income after Taxes 524230

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