ummary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year equired: repare the company's budgeted income statement for the year. Answer is complete but not entirely correct. Gig Harbor Boating Budgeted Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income nterest expense Het income ✓ $ 1,696,000 ✓1,116,000 X 580,000 X 333333 129,065 X 450,935 X 28,000✔ $ 422,935 x 800 $ 2,120 $ 1,390 $ 65 $ 500,000 $ 28,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following
summary data to use in its annual budgeting process:
Budgeted unit sales
Selling price per unit
Cost per unit
Variable selling and administrative expense (per unit)
Fixed selling and administrative expense (per year)
Interest expense for the year
Required:
Prepare the company's budgeted income statement for the year.
X Answer is complete but not entirely correct.
Gig Harbor Boating
Budgeted Income Statement
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating income
Interest expense
Net income
$
1,696,000
1,116,000 X
580,000 X
129,065 X
450,935 X
28,000
$ 422,935 x
800
$ 2,120
$ 1,390
$65
$ 500,000
$ 28,000
Transcribed Image Text:Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year Required: Prepare the company's budgeted income statement for the year. X Answer is complete but not entirely correct. Gig Harbor Boating Budgeted Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income $ 1,696,000 1,116,000 X 580,000 X 129,065 X 450,935 X 28,000 $ 422,935 x 800 $ 2,120 $ 1,390 $65 $ 500,000 $ 28,000
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