Chapter 22, Problem P22.50BPGB

To determine

Net income: Net income is the earning in the company's account after deducting the depreciation costs and the taxes. It is the difference between the revenue earned and the cost of doing business.

Income Statement: The statement in which the profit and loss of a company is mentioned is called income statement. In income statement revenues, expenses, net income, profit and loss will be mentioned. It is also a statement which gives us the effect of expenses and profits in a stipulated time period.

Requirement 1:

To Prepare: The operations and cash budget with the required schedules. Also, prepare the budgeted income statement and budgeted balance sheet.

Requirement 2:

To determine

To Prepare: The budgeted income statement and budgeted balance sheet.