Chapter 20, Problem 3PSA

To determine

Budgeted income statement:

Budgeted income statement can be defined as a statement that presents the budgeted sales and expenses of an entity for a particular period. It is often referred to as an estimated income statement of the future period.

1.

To prepare: The budgeted income statements for each of the months of January, February, and March that show the expected results.

To determine

2.

To recommend: Whether the management should implement the proposed changes.