6.12. Budgeted Income Statement
The budgeted income statement summarizes the various component projections of revenue and expenses for the budgeting period. However, for control purposes, the budget can be divided into quarters or even months, depending on the need.
Schedule 9
From Schedule | |||
---|---|---|---|
Sales (6,000 units @$150) | $900,000 | ||
Less: Cost of goods sold: | |||
Beginning finished goods inventory | 10 | $16,400 | |
Add: Cost of goods manufactured (6,100 units @$82) | 6 | 500,200 | |
Cost of goods available for sale | 516,600 | ||
Less: Ending finished goods inventory | 6 | (24,600) | $492,000 |
Gross margin | $408,000 | ||
Less: Selling and administrative expense | 7 | 278,000 | |
Operating income | 130,000 | ||
Less: Interest expense | 8 | 5,625 | |
Net income before taxes | 124,375 | ||
Less: income taxes | 60,000[] | ||
Net income after taxes | $ 64,375 | ||
[] |
[] Estimated.
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