Brief Exercise 9-8

	Your answer is partially correct. Try again.

North Company has completed all of its operating budgets. The sales budget for the year shows51,020units and total sales of $2,459,000. The total unit cost of making one unit of sales is $22. Selling and administrative expenses are expected to be $309,400. Interest is estimated to be $10,000. Income taxes are estimated to be $204,800.

Prepare a budgeted multiple-step income statement for the year ending December 31, 2017.

NORTH COMPANY Budgeted Income Statement For the Quarter Ending December 31, 2017December 31, 2017For the Year Ending December 31, 2017
PurchasesSelling and Administrative ExpensesIncome Tax ExpenseTotal Operating ExpensesInterest ExpenseOperating ExpensesIncome from OperationsBeginning InventoryEnding InventoryNet Income / (Loss)SalesGross ProfitCost of Goods SoldIncome Before Income Taxes	$
Operating ExpensesBeginning InventoryInterest ExpenseCost of Goods SoldNet Income / (Loss)Income Tax ExpensePurchasesSalesIncome from OperationsSelling and Administrative ExpensesTotal Operating ExpensesEnding InventoryGross ProfitIncome Before Income Taxes
Selling and Administrative ExpensesPurchasesIncome Before Income TaxesInterest ExpenseSalesTotal Operating ExpensesCost of Goods SoldBeginning InventoryOperating ExpensesEnding InventoryGross ProfitIncome from OperationsIncome Tax ExpenseNet Income / (Loss)
Income from OperationsIncome Tax ExpenseInterest ExpenseIncome Before Income TaxesNet Income / (Loss)Cost of Goods SoldOperating ExpensesEnding InventoryGross ProfitPurchasesSalesSelling and Administrative ExpensesTotal Operating ExpensesBeginning Inventory
Gross ProfitIncome Tax ExpenseNet Income / (Loss)SalesCost of Goods SoldOperating ExpensesPurchasesIncome Before Income TaxesSelling and Administrative ExpensesTotal Operating ExpensesIncome from OperationsBeginning InventoryEnding InventoryInterest Expense
Selling and Administrative ExpensesSalesCost of Goods SoldTotal Operating ExpensesPurchasesIncome Tax ExpenseBeginning InventoryInterest ExpenseEnding InventoryGross ProfitIncome from OperationsIncome Before Income TaxesOperating ExpensesNet Income / (Loss)
Net Income / (Loss)SalesIncome Tax ExpenseTotal Operating ExpensesSelling and Administrative ExpensesEnding InventoryBeginning InventoryGross ProfitOperating ExpensesCost of Goods SoldIncome Before Income TaxesIncome from OperationsPurchases
Total Operating ExpensesBeginning InventoryPurchasesIncome from OperationsIncome Before Income TaxesCost of Goods SoldEnding InventoryInterest ExpenseGross ProfitSalesIncome Tax ExpenseNet Income / (Loss)Operating ExpensesSelling and Administrative Expenses
Interest ExpenseGross ProfitOperating ExpensesNet Income / (Loss)PurchasesSelling and Administrative ExpensesIncome Before Income TaxesIncome Tax ExpenseIncome from OperationsBeginning InventorySalesTotal Operating ExpensesEnding InventoryCost of Goods Sold	$