Explanation Budgeted income statement: This budget is prepared by the organization for the yearly, quarterly, or monthly basis as per need to find estimated income after income tax. It includes all the estimated income and expenses from the entire operating source, including income tax. Budgeted income statement for the month of May and June: Income statement (Amount in $) Particulars Month May June Sells: May: ( 35 , 000 + 35 , 000 × 10 % ) June: ( 35 , 000 + 35 , 000 × 12 % ) 38,500 39,200 Less: Cost of sell (see working note) 19,180 19,020 Gross profit 19,320 20,180 Less: Operating expenses Salary and commission: May: ( 3000 + 38 , 500 × 10 % ) June: ( 3000 + 39 , 200 × 10 % ) 6,850 6,920 Plus: Rent 2,800 2,800 Plus: Insurance 400 400 Total expense 10,050 10,120 Total income 9,270 10,060 Less: Income tax 1,854 2,012 Income after tax 7,416 8,048 Table (1) Given: 1. Sales in April were $35,000. As per forecast monthly sales will increase 10% in May and an additional 2% in June

5th Edition

ISBN: 9780134128528

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

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Chapter 9, Problem 9.68BP

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The budgeted income statement for the month of May and June.

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Chapter 9, Problem 9.67BP

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The budgeted income statement for the month of May and June.

Solution Summary: The author explains the budgeted income statement for May and June. It includes all the estimated income and expenses from the entire operating source, including income tax.

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The budgeted income statement for the month of May and June.

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