North Company has completed all of its operating budgets. The sales budget for the year shows 50,100 units and total sales of $2,100,000. The total unit cost of making one unit of sales is $22. Selling and administrative expenses are expected to be $301,000. Interest is estimated to be $10,000. Income taxes are estimated to be $200,000. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020.

ANSWERS TO THE BOXES THAT ARE HIGHLIGHTED IN RED

NORTH COMPANY Budgeted Income Statement For the Year Ending December 31, 2020 Sales 2100000 Cost of Goods Sold 1102200 i Selling and Administrative Expenses 997800 Income from Operations 301000 Interest Expense 696800 Income Before Income Taxes 10000 i Income Tax Expense 686800 Net Income /(Loss) 200000 i Cost of Goods Sold