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 Cost of Goods Sold
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.
![Operating Expenses
Total Operating Expenses](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F727e4093-8ead-4bf8-b086-0722c8766cbb%2F44b6d3a5-64f5-4f1a-8ea6-2b4da8e2ed7a%2Fjsz1zn_processed.png&w=3840&q=75)
![The data shown were obtained from the financial records of Italian Exports, Inc., for March:
Estimated Sales
$540,000
Sales
567,927
Purchases
294,829
Ending Inventory*
10%
Administrative Salaries
50,320
Marketing Expense**
5%
Sales Commissions
2%
Rent Expense
7,700
Depreciation Expense
1,200
Utilities
2,300
Taxes***
15%
*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 nearest dollar.
Italian Exports, Inc.
Budgeted Income Statement
For the Month Ending Mar. 31,
2020
Cost of Goods Sold](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F727e4093-8ead-4bf8-b086-0722c8766cbb%2F44b6d3a5-64f5-4f1a-8ea6-2b4da8e2ed7a%2Fybo3q4u_processed.png&w=3840&q=75)
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