Preparing a Budgeted Income Statement

Oliver Company provided the following information for the coming year:

Units produced and sold	160,000
Cost of goods sold per unit	$6.30
Selling price	$10.80
Variable selling and administrative expenses per unit	$1.10
Fixed selling and administrative expenses	$423,000
Tax rate	35%

Required:

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

Oliver 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	$