The data shown were obtained from the financial records of Italian Exports, Inc., for March:Estimated Sales$550,000Sales567,933Purchases294,814Ending Inventory*10%Administrative Salaries50,340Marketing Expense**5%Sales Commissions2%Rent Expense7,400Depreciation Expense1,100Utilities2,600Taxes***15%*of next month's sales**of estimated sales***of income before taxesSales 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 StatementFor the Month Ending Mar. 31, 2020 $fill in the blank 2Cost of Goods Sold $fill in the blank 4 fill in the blank 6 $fill in the blank 8 fill in the blank 10 $fill in the blank 12 fill in the blank 14Operating Expenses $fill in the blank 16 fill in the blank 18 fill in the blank 20 fill in the blank 22 fill in the blank 24 fill in the blank 26Total Operating Expenses$fill in the blank 27 $fill in the blank 29 fill in the blank 31 $fill in the blank 33

Formula: Net income = Revenues - expenses Deduction of expenses from revenues derives the net…

Answered: The data shown were obtained from the…

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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The data shown were obtained from the financial records of Italian Exports, Inc., for March:

Estimated Sales	$550,000
Sales	567,933
Purchases	294,814
Ending Inventory*	10%
Administrative Salaries	50,340
Marketing Expense**	5%
Sales Commissions	2%
Rent Expense	7,400
Depreciation Expense	1,100
Utilities	2,600
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
	$fill in the blank 2
Cost of Goods Sold
	$fill in the blank 4
	fill in the blank 6
	$fill in the blank 8
	fill in the blank 10
	$fill in the blank 12
	fill in the blank 14
Operating Expenses
	$fill in the blank 16
	fill in the blank 18
	fill in the blank 20
	fill in the blank 22
	fill in the blank 24
	fill in the blank 26
Total Operating Expenses	$fill in the blank 27
	$fill in the blank 29
	fill in the blank 31
	$fill in the blank 33

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