Explanation Budgeted income statement: The budgeted income statement shows the overall operating profit of the business in the budgeted period. It includes sales revenue and all the costs of the business. It includes the direct and indirect cost of the production. Operating profit is calculated by subtracting the total cost from the sales of the business. The budgeted income statement for company J: Company J Budgeted Income Statement for the month end 31 April Particulars Amount Revenue: Commercial clients(1) $67,200 Residential clients(1) $52,800 Total revenue (a) $120,000 Less: expenses Cleaner compensation(2) $62,400 Supplies(2) $20,800 SG&A $30,000 Other expenses $2,000 Total expenses (b) $115,200 Operating profit c = (a-b) $4,800 Table: (1) Thus, the operating profit is $4,800. Working note 1: Calculate the revenue: Particulars Number of clients Rate per client Amount Commercial clients 48(3) $1,400 $67,200 Residential clients 176(4) $300 $52,800 Table: (2) Working note 2: Calculate the expenses: st

5th Edition

ISBN: 9781259565403

Author: William N. Lanen Professor, Shannon Anderson Associate Professor, Michael W Maher

Publisher: McGraw-Hill Education

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Chapter 13, Problem 41E

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Prepare a budgeted income statement for Company J for April.

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Chapter 13, Problem 40E

Chapter 13, Problem 42E

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Prepare a budgeted income statement for Company J for April.

Solution Summary: The author explains how to prepare a budgeted income statement for Company J for the month end 31 April.

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Prepare a budgeted income statement for Company J for April.

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