North Company has completed all of its operating budgets. The sales budget for the year shows 50,000 units and total sales of $2,250,000. The total unit cost of making one unit of sales is $25. Selling and administrative expenses are expected to be $300,000.

Income taxes are estimated to be $210,000. Prepare a budgeted income statement for the year ending December 31, 2014.

AppendixLO1