FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:The data shown were obtained from the financial records of Italian Exports, Inc., for March:
Estimated Sales
Sales
Purchases
Ending Inventory*
Administrative Salaries
Marketing Expense**
Sales Commissions
Rent Expense
Depreciation Expense
Utilities
Taxes***
*of next month's sales
**of estimated sales
Sales
Cost of Goods Sold
***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
Beginning Inventory
Purchases
Cost of Goods Avaliable for Sale
Ending Inventory
Cost of Goods Sold
Gross Profit
Operating Expenses
Administrative Salaries
Marketing Expenses
Sales Commissions
Rent Expense
Depreciation Expense
$340,000
367,932
294,830
Utilities
Total Operating Expenses
Income From Operations
Income Tax Expense
Net Income
10%
30,340
5%
2%
7,000
900
2,300
15%
to ovembo
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