40. Selling and Administrative Budget and Budgeted Income Statement. (The previous problem must be completed before working this problem.) Sports Bars, Inc., produces energy bars. Management estimates all selling and administrative costs are fixed. Quarterly selling and administrative cost estimates for the coming year follow. Salaries Rent Advertising $120,ooo Depreciation 75,o0o Other $170,000 65,000 $36,000 Required a. Use the information presented previously to prepare a selling and administrative budget. Refer to the format shown in Figure 9.8. b. Use the information from the previous problem and from requirement a of this problem to prepare a budgeted income statement. Refer to the format shown in Figure 9.9 c. How will management use the information presented in the budgeted income statement? PROBLEMS (continued) 40. Selling and Administrative Budget and Budgeted Income Statement a. Selling and administrative budget Sports Bars, Inc. Selling and Administrative Budget Year Ending December 31 Quarter 2 Year Salarics Rent Advertising Depreciation Other Total selling and administrative costs Deduct depreciation Cash payments for selling and administrative $391,000 PROBLEMS (continued) 40. Selling and Administrative Budget and Budgeted Income Statement (continued) b. Budgeted income statement Sports Bars, Inc. Budgeted Income Statement Year Ending December 31 Quarter Sales (from sales budget) Deduct cost of goods sold Gross margin Deduct selling and administrative costs Net income (loss) S2,024,200 Per unit cost of goods sold calculation: Year Direct materials (from direct materials purchases budget) Direct labor (from direct labor budget) Manufacturing overhead (from manufacturing overhead budget) Total cost of goods sold per unit c