Kalven Company has budgeted the following for the year 2020:

1.		Sales: 50,900 units; unit selling price $75.
2.		Cost of one unit of finished goods: direct materials, 2 kg at $4 per kilogram; direct labour, 4 hours at $12 per hour; and manufacturing overhead, $2 per direct labour hour.
3.		Selling and administrative expenses: $159,000.
4.		Income taxes: 25% of income before income taxes.

Prepare a budgeted income statement for 2020.

KALVEN COMPANY Budgeted Income Statement For 2020
Net incomeSelling and administrative expensesBeginning inventoryCost of goods soldNet lossPurchasesIncome taxesGross profitNet income before income taxesCost of goods available for saleEnding inventorySales		$
Ending inventoryCost of goods soldNet incomeSelling and administrative expensesNet lossPurchasesGross profitIncome taxesSalesBeginning inventoryNet income before income taxesCost of goods available for sale
Cost of goods available for saleNet lossBeginning inventoryGross profitCost of goods soldSalesNet incomeNet income before income taxesIncome taxesSelling and administrative expensesEnding inventoryPurchases
Ending inventoryIncome taxesPurchasesNet income before income taxesSelling and administrative expensesNet incomeGross profitCost of goods soldNet lossSalesCost of goods available for saleBeginning inventory
Gross profitEnding inventoryIncome taxesCost of goods soldSelling and administrative expensesCost of goods available for saleNet lossPurchasesSalesNet incomeNet income before income taxesBeginning inventory
PurchasesBeginning inventoryNet incomeNet lossSelling and administrative expensesCost of goods available for saleCost of goods soldGross profitEnding inventorySalesIncome taxesNet income before income taxes
Cost of goods soldNet lossSalesBeginning inventoryNet incomeCost of goods available for salePurchasesGross profitNet income before income taxesEnding inventoryIncome taxesSelling and administrative expenses		$

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