Selling and administrative expenses budget and budgeted income statement LO₂ A listing of budgeted selling and administrative expenses for the Glide-

Rite Tire Company in P8- 1 for the year ended December 3 1 , 2002, appears as follows:

Required:
1.Prepare a selling and administrative expenses budget, in good form, for the year ended 2002.
2. Using the information above and the budgets prepared in P8-I, prepare a budgeted income statement for the year ended 2002, assuming an income tax rate of 40%.

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Advertising expense. Office rent expense Office salaries expense. $942.000 125,000 821,000 Office supplies expense 45,500 Officers' salaries expense. 661,000 Sales salaries expense... 868,000 Telephone and fax expense. 33,500 Travel expense... 443,000