Prepare a budgeted income statement for 2022. Cost of goods sold Gross profit Sales lb SPLISH COMPANY Budgeted Income Statement For the Year Ending December 31, 2022 $ Income before income taxes Selling and administrative expenses Net income Income tax expense $ LA
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.
![Splish Company has accumulated the following budget data for the year 2022:
1.
2.
3.
4.
5.
6.
19
Sales: 27,900 units; unit selling price $82
Cost of one unit of finished goods: direct materials, 2 kg at $5 per kilogram; direct labour, 3 hours at $13 per hour; and
manufacturing overhead, $6 per direct labour hour
Inventories (raw materials only): beginning, 9,900 kg; ending, 14,100 kg
Raw materials cost: $5 per kilogram
Selling and administrative expenses: $201,000
Income taxes: 30% of income before income taxes](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa3e648c1-def3-46b5-84f6-7e78416be898%2F9322b74d-5ebc-4e4d-901e-c3e72374c143%2Ft3t1bcn_processed.png&w=3840&q=75)
![Prepare a budgeted income statement for 2022.
Cost of goods sold
Gross profit
Sales
SPLISH COMPANY
Budgeted Income Statement
For the Year Ending December 31, 2022
$
Income before income taxes
Selling and administrative expenses
Net income
Income tax expense
lb
<
LA
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa3e648c1-def3-46b5-84f6-7e78416be898%2F9322b74d-5ebc-4e4d-901e-c3e72374c143%2F1ns933t_processed.png&w=3840&q=75)
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