Paige Company has completed all of its operating budgets. The sales budget for t

Question

Paige Company has completed all of its operating budgets. The sales budget for the year shows 50,000 units and total sales of $2,000,000. The total unit cost of making one unit of sales is $22. Selling and administrative expenses are expected to be $300,000. Income taxes are estimated to be $150,000. Prepare a budgeted income statement for the year ending December 31, 2011. (Enter all amounts as positive amounts and subtract where necessary.)

For the Year Ending December 31, 2011

For the Year Ending December 31, 2011

$

Explanation / Answer

PAIGE COMPANY
Budgeted Income Statement
each amount is in $
For the Year Ending December 31, 2011
$
Sales Revenue 2,000,000
Less: Cost of Goods Sold (50000 x 22) (1,100,000)
Gross income 900,000
Less: Selling and Admin Expenses (300,000)
Net income before tax/Operating Profit 600,000
Income Tax (150000)
Net Income 450,000

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