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 Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year 720 2,080 $ 1,380 $ 70 $ 400,000 $ 24,000 Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement Gig Harbor Boating Budgeted Income Statement Accounts payable Accounts receivable Accumulated depreciation Advertising Beginning merchandise inventory Gig Harbor Boating Budgeted Income Statement Cash Commissions Common stock Cost of goods sold Depreciation Direct labor Gig Harbor Boating Budgeted Income Statement Direct materials Ending merchandise inventory Equipment Fixed manufacturing overhead Indirect labor Indirect materials Gig Harbor Boating Budgeted Income Statement Interest expense Inventory Manufacturing overhead Note payable Prepaid insurance Purchases Gig Harbor Boating Budgeted Income Statement Purchases Retained earnings Sales Selling and administrative expenses Variable manufacturing overhead