THE COSTS
INCOME STATEMENT BUDGET

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                                                       .
           The budgets for sales, cost of goods sold, and selling and administrative expenses, combined with the data on other income, other expense, and other income tax, are used to prepare the budgeted income statement. The next table shows a budgeted income statement for the company Colt Manufacturing Inc.:
              
    Colt Manufacturing, Inc.
      Budgeted income Statement
    For the Year Ending December 31, 2008
                                                                                                                  .
                          

    Revenue from sales (from Sales budget)

    $13,336,000
    Cost of goods sold (from Cost of Goods Sold budget)

    9,047,780



       Gross profit

    $4,288,220
       Selling and administrative expenses:


           Selling expenses (from Selling and Adm. Expenses budget)
    1,190,000

          Administrative expenses (from Selling and Adm. Expenses budget) 695,000

          Total selling and administrative expenses

    1,885,000
    Income from operations

    2,403,220
    Other income:


          Interes revenue:
    98,000

    Other expense:


          Interest expense:
    90,000
    8,000
    Income before income tax

    $2,241,220
    Income tax

    600,000
    Net income

    $1,811,220





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