The data shown were obtained from the financial records of Italian Exports, Inc., for March:Estimated Sales$600,000Sales567,930Purchases294,830Ending Inventory*10%Administrative Salaries50,320Marketing Expense**5%Sales Commissions2%Rent Expense7,500Depreciation Expense1,000Utilities2,500Taxes***15%*of next month's sales**of estimated sales***of income before taxesSales 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 StatementFor the Month Ending Mar. 31, 2020Cost of Goods SoldOperating ExpensesTotal Operating Expenses

An income statement is a financial report that depicts the financial performance of a business…

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Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter9: Cost Accounting For Service Businesses, The Balanced Scorecard, And Quality Costs

Section: Chapter Questions

Problem 4E: Prepare a budgeted income statement for the month ending September 30, 2016.

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The data shown were obtained from the financial records of Italian Exports, Inc., for March:

Estimated Sales	$600,000
Sales	567,930
Purchases	294,830
Ending Inventory*	10%
Administrative Salaries	50,320
Marketing Expense**	5%
Sales Commissions	2%
Rent Expense	7,500
Depreciation Expense	1,000
Utilities	2,500
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
Cost of Goods Sold
Operating Expenses
Total Operating Expenses

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