In: Accounting
The data shown were obtained from the financial records of Italian Exports, Inc., for March:
Estimated Sales | $580,000 |
Sales | 567,926 |
Purchases | 294,819 |
Ending Inventory* | 10% |
Administrative Salaries | 50,320 |
Marketing Expense** | 5% |
Sales Commissions | 2% |
Rent Expense | 7,700 |
Depreciation Expense | 1,200 |
Utilities | 2,300 |
Taxes*** | 15% |
*of next month's sales
**of estimated sales
***of income before taxes
Sales are expected to increase each month by 10%.
Prepare a budgeted income statement. Round your answers to the nearest dollar.
Italian Exports, Inc. | |
Budgeted Income Statement | |
For the Month Ending Mar. 31, 2020 | |
Sales
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$ |
Cost of Goods Sold | |
Beginning Inventory
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$ |
Purchases
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Cost of Goods Available for Sale
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$ |
Ending Inventory
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|
Cost of Goods Sold
|
$ |
Gross Profit
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|
Operating Expenses | |
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$ |
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|
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|
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Total Operating Expenses | $ |
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$ |
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$ |
Italian Exports Inc | ||
Budgeted Income Statement | ||
For the Year Ended March 31 | ||
Sales | 567,926 | |
Less : Cost of Goods Sold | (289,140) | |
Beginning Inventory | 56,793 | |
Add : Purchase | 294,819 | |
Less : Closing Inventory | (62,472) | |
Gross Profit | 278,786 | |
Administrative Salary | 50,320 | |
Marketing Expense | 29,000 | |
Sales Commission | 11,359 | |
Rent Expense | 7,700 | |
Depreciation Expense | 1,200 | |
Utility Expense | 2,300 | |
Total Operating Expense | 101,879 | |
Income Before Tax | 176,907 | |
Tax (15%) | 8,845 | |
Net Income | 168,062 |
Gross Profit = Sales - Cost of Goods Sold
Opening inventory = Current Month Sales x 10%
Ending Inventory = (Current Month Sales + 10% of Current month Sales) x 10%
Marketing Expense = 5% of Estimated Sales
Sales Commission = 2% of Current Month Sales
Income Before Tax = Gross Profit - Total Opearting Expense