budgeted income statement

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fortune Incorporated is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit.
Sales (in units) are budgeted at 157,000 for the first quarter. Cost of goods sold is $12 per unit. Other expense information for the first
quarter follows.
Sales Commissions
Rent
Advertising
Office salaries
Depreciation
Interest
Tax rate
11% of sales dollars
per quarter
per quarter
per quarter
per quarter
quarterly on $300,000 note payable
$ 42,000
$ 577,000
$ 270,000
$ 143,000
1.75%
40%
Prepare a budgeted income statement for the first quarter ended March 31. (Round your intermediate and final answers to the
nearest whole dollar.)
FORTUNE, INCORPORATED
Budgeted Income Statement
For Quarter Ended March 31
Selling, general and administrative expenses
$
0
0
Transcribed Image Text:Fortune Incorporated is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are budgeted at 157,000 for the first quarter. Cost of goods sold is $12 per unit. Other expense information for the first quarter follows. Sales Commissions Rent Advertising Office salaries Depreciation Interest Tax rate 11% of sales dollars per quarter per quarter per quarter per quarter quarterly on $300,000 note payable $ 42,000 $ 577,000 $ 270,000 $ 143,000 1.75% 40% Prepare a budgeted income statement for the first quarter ended March 31. (Round your intermediate and final answers to the nearest whole dollar.) FORTUNE, INCORPORATED Budgeted Income Statement For Quarter Ended March 31 Selling, general and administrative expenses $ 0 0
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