Selling/Admin Expenses Budget The sales budget is often used as the starting point for the selling and administrative expenses budget. For example, a budgeted increase in sales may require more advertising expenses. LearnCo has prepared its selling and administrative expenses budget as follows. This budget is merely reviewed by you for use in the budgeted income statement LearnCo Selling and Administrative Expenses Budget For the Year Ending December 31, 2012 Seling expenses Sales salaries expense $45,000 Advertising expense 15,000 Travel expense 5,400 Total soling expenses $65,400 Administrative expenses Officers salaries expense $85,000 Orice salaries expense 35,000 Selling expenses Sales salaries expense $45,000 Advertising expense 15,000 Travel expense 5,400 Total selling expenses $65.400 Administrative expenses: Officers' salaries expense Office salaries expense $85,000 35,000 Office rent expense 26,000 Office supplies expense 6,400 Miscellaneous administrative expenses 1.600 Total administrative expenses 154,000 Total selling and administrative expenses $219,400 Budgeted Income Statement The budgeted income statement is prepared by integrating the sales budget, cost of goods sold budget, and selling and administrative expenses budget. Additional information that may be helpful in preparing the budgeted income statement are in the following Budgeted Income Statement Data Table Review the Budgeted Income Statement Data Table, then complete the budgeted income statement that follows the table. Round the computed amount for Income tax to the nearest whole dollar. Enter all amounts as positive numbers Budgeted Income Statement Data Table Interest revenue for the year Interest expense for the year LearnCo's Income tax rate $2,000 $1,500 40% LearnCo Budgeted Income Statement For the Year Ending December 31, 2012 1 Revenue from sales 1 Cost of goods sold Budgeted Income Statement For the Year Ending December 31, 20Y2 1 Revenue from sales 2 Cost of goods sold 5 Gross profit Selling and administrative expenses 5 Selling expenses Administrative expenses 7 Total selling and administrative expenses Income from operations Other revenue and expense 6 10 Interest revenue 11 Interest expense 12 Income before Income tax 13 Income tax 14 Net income