Question

North Company has completed all of its operating budgets. The sales budget for the year shows 50,640 units and total sales of $2,354,100. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $305,500. Interest is estimated to be $11,620. Income taxes are estimated to be $225,500.

Prepare a budgeted multiple-step income statement for the year ending December 31, 2020.

Answer 1

Based on the information available, we can create the multiple step income statement for the year ending December 31, 2020 for North company as follows:-

NORTH COMPANY
MULTIPLE STEP INCOME STATEMENT
	Amount	Amount
Sales	2,354,100
Less:- Cost of goods sold (50,640 units * $23 per unit)	1,164,720
Gross Profit		1,189,380
Less:- Operating expenses
Selling and administrative expense		(305,500)
Operating Income		883,880
Less:- Non operating income/expenses
Interest expenses	11,620
Income tax expenses	225,500
		(237,120)
Net Income		646,760

Please let me know if you have any questions via comments and all the best :)