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27 April, 19:38

Culver 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 $10,000. Income taxes are estimated to be $214,000.

Required:

Prepare a budgeted multiple-step income statement for the year ending December 31, 2017.

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  1. 27 April, 19:40
    0
    Net Income = $593,560

    Explanation:

    Cost of Goods Sold=sales unit * cost of sales per unit

    = $23 * 50,180 = $1,154,140

    Income statement December 31,2017

    Particular Amount ($)

    Sales 2,273,600

    Less:-Cost of goods sold (1,154,140)

    Gross Profit 1,119,460

    Less-Selling and Administrative Expenses (3,019,00)

    Income from Operation 817,560

    Less-Estimated Interest (10,000)

    Income before Taxes 807,560

    Less-Income Taxes (214,000)

    Net Income 593,560
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