1. Preparing a Budgeted Income Statement

Jameson Company provided the following information for the coming year:

Units produced and sold230,000 Cost of goods sold per unit$5.30 Selling price$9.70 Variable selling and administrative expenses per unit$1.60 Fixed selling and administrative expenses$387,000 Tax rate35%

Required:

Prepare a budgeted income statement for Jameson Company for the coming year. Round all income statement amounts to the nearest dollar.

Jameson Company Budgeted Income Statement For the Coming Year

Sales$

Cost of goods sold

Gross margin$

Less: Variable selling and administrative expenses

Less: Fixed selling and administrative expenses

Operating income$

Less: Income taxes

Net income$