Estimated Sales Sales Purchases Ending Inventory Administrative Salaries Marketing Expense** Sales Commissions Rent Expense Depreciation Expense $540,000 307,932 294,830 10% 30,340 5% 7,000 900 Utilities Taxes*** *of next month's sales **of estimated sales ***of income before taxes Sales are expected to increase each month by 10%. Prepare a budgeted income statement. Round your answers to the neares 2,300 15%
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![The data shown were obtained from the financial records of Italian Exports, Inc., for March:
Estimated Sales
Sales
Purchases
Ending Inventory*
Administrative Salaries
Marketing Expense**
Sales Commissions
Rent Expense
Depreciation Expense
Utilities
Taxes***
*of next month's sales
**of estimated sales
Sales
Cost of Goods Sold
***of income before taxes
Sales are expected to increase each month by 10%.
Prepare a budgeted Income statement. Round your answers to the nearest dollar.
Italian Exports, Inc.
Budgeted Income Statement
For the Month Ending Mar. 31, 2020
Beginning Inventory
Purchases
Cost of Goods Avaliable for Sale
Ending Inventory
Cost of Goods Sold
Gross Profit
Operating Expenses
Administrative Salaries
Marketing Expenses
Sales Commissions
Rent Expense
Depreciation Expense
$340,000
367,932
294,830
Utilities
Total Operating Expenses
Income From Operations
Income Tax Expense
Net Income
10%
30,340
5%
2%
7,000
900
2,300
15%
to ovembo](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2dded700-e38a-4d85-b603-66e7240e0245%2F0c35ec77-e28d-45b0-b083-4d50213ff0bb%2Fa215k2g_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)