Income Statement Cash Flows Balance Sheet Prepare the budgeted income statement. Budgeted Income Statement Sales revenue Cost of goods sold Depreciation expense Other expense Operating income Interest expense Net income $324,000 264,000 2,600 276,000 53,400 x 680 $ 52,720 Budgeted Statement of Cash Flows Cash flows from operating activities Inflows from sales $ 324,000 Outflows for: Purchase of food, etc. Other initial expenses Interest expense 6,000 6,000 3,400 Net cash flows from operating activities 339,400 Cash flows from investing activities Outflow for purchase of cart Cash flow from financing activities Inflows from: Contribution by owners 4,000