Exercise 8-8 (Algo) Budgeted Income Statement [LO8-9]

Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process:

Budgeted unit sales	500
Selling price per unit	$ 1,970
Cost per unit	$ 1,460
Variable selling and administrative expense (per unit)	$ 50
Fixed selling and administrative expense (per year)	$ 196,000
Interest expense for the year	$ 13,000

Required:

Prepare the companys budgeted income statement for the year.