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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.:
|
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 |
|