Question
Exercise 20-34 Budgeted income statement LO P3 Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at
Exercise 20-34 Budgeted income statement LO P3
Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are forecasted at 43,000 for January, 63,000 for February, and 53,000 for March. Cost of goods sold is $12 per unit. Other expense information for the first quarter follows.
| Comissions | 10% | of sales per dollars |
| Rent | $23,000 | per month |
| Advertising | 12% | of sales dollars |
| Offices salaries | $73,000 | per month |
| Depreciation | $53,000 | per month |
| Interest | 15% | annually on a $290,000 note payable |
| Tax rate | 40% |
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Prepare a budgeted income statement for this first quarter. (Round your final answers to the nearest whole dollar.)
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