"Budgeted Income Statement"

Theresa M. Odom

ACC 310

Ivan Makarov

May 19, 2014

Budgeted Income Statement

Problem 13-36

Prepare a budgeted income statement for year 2.

Year 1

Revenues (300,000 units). . . . . . . . . . 5,700,000

Manufacturing costs

Materials . . . . . . . . . . . . . . . . . . . . . 336,000

Variable cash costs . . . . . . . . . . . . . 284,800

Fixed cash costs . . . . . . . . . . . . . . . 655,200

Depreciation (fixed) . . . . . . . . . . . . . 1,998,000

Marketing and administrative costs

Marketing (variable, cash) . . . . . . . . 844,800

Marketing depreciation . . . . . . . . . . 299,200

Administrative (fixed, cash) . . . . . . . 1,018,400

Administrative depreciation . . . . . . . 149,600

Total costs . . . . . . . . . . . . . . . . . . 5,586,000

Operating...