Questions 26 and 27

Assume that the forecasted cost of goods sold is $800,000, budgeted selling and administrative expenses are $320,000, planned capital expenditures are $320,000, and the tax rate is 40 percent. What is the forecasted net income if each unit will sell for $150 and the sales forecast is for 15,000 units to be sold? $678,000 $452,000 . $805,000 $483,000 A cash budget is an optional feature of a master budget. requires input from all parts of the organisation. takes the place of another budget. is prepared only at year end