ilm/take Assignment/take AssignmentMain.do?invoker=&take AssignmentSessionLocator=&inprogress=false eBook El Calculator Budgeted Income Statement Coral Seas Jewelry Company makes and sells costume Jewelry. For the coming year, Coral Seas expects sales of $16,100,000 and cost of goods sold of $8,855,000. Advertising is a key part of Coral Seas' business strategy, and total marketing expense for the year is budgeted at $2,898,000. Total administrative expenses are expected to be $644,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income Required: 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year Coral Seas Jewelry Company Budgeted Income Statement For the Coming Year 16100.000 Less: Cost of goods sold 55.000 Sales y 7.245.000 Gross margin Less Marketing expense Admistrative pene 64400 2512100 Operating income Les Income 33 000 Checy W Assignment/take Assignment Main.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Calculator The budgeted Income statement pulls the results of all the operating budgets together and helps managers determine what the company's performance will be by the end of the year. If the manager does not like the net income then they must go back and find ways to increase sales and/or decrease expenses. 2. What if Coral Seas had interest payments of 5483,000 during the year? What effect would that have on operating income? On income before taxes? On net income? If no effect, select "no impact and enter "0" Operating Income No Impact to Income before taxes Decrease to 483,000 X Net Income Decrease tos 193,200 X My Wor Review how interest income affects the difference aspects of an income statement and explain your answer Partially conted Check My Work Previous 6:34 PM 11/1/2010 ilm/take Assignment/take AssignmentMain.do?invoker=&take AssignmentSessionLocator=&inprogress=false eBook El Calculator Budgeted Income Statement Coral Seas Jewelry Company makes and sells costume Jewelry. For the coming year, Coral Seas expects sales of $16,100,000 and cost of goods sold of $8,855,000. Advertising is a key part of Coral Seas' business strategy, and total marketing expense for the year is budgeted at $2,898,000. Total administrative expenses are expected to be $644,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income Required: 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year Coral Seas Jewelry Company Budgeted Income Statement For the Coming Year 16100.000 Less: Cost of goods sold 55.000 Sales y 7.245.000 Gross margin Less Marketing expense Admistrative pene 64400 2512100 Operating income Les Income 33 000 Checy W Assignment/take Assignment Main.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Calculator The budgeted Income statement pulls the results of all the operating budgets together and helps managers determine what the company's performance will be by the end of the year. If the manager does not like the net income then they must go back and find ways to increase sales and/or decrease expenses. 2. What if Coral Seas had interest payments of 5483,000 during the year? What effect would that have on operating income? On income before taxes? On net income? If no effect, select "no impact and enter "0" Operating Income No Impact to Income before taxes Decrease to 483,000 X Net Income Decrease tos 193,200 X My Wor Review how interest income affects the difference aspects of an income statement and explain your answer Partially conted Check My Work Previous 6:34 PM 11/1/2010