Calgary industries is preparing a budgeted income statement for 2018 and has accumulated the following information. predicted sales for the year are $730,000 and cost of goods sold is 40% of sales. the expected selling expenses are $81,000 and the expected general and administrative expenses are $90,000, which includes $23,000 of depreciation. the company’s income tax rate is 30%. the budgeted net income for 2018 is:

Net Income      186,900

Explanation:

sales                                   730,000

variable cost

40% of sales

40% of 730,000 =            (292,000)

Selling expense                 (81,000)

Administrative expense    (90,000)

Earnigns before taxes        267,000

income tax expense

30% of EBT

30% of 267,000  =               (80,100)

Net Income                         186,900

disadvantages of leasing a vehicle: no vehicle equity and mileage limitations

disadvantages of purchasing a vehicle: large down payment and vehicle depreciation

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answer; ///blank(1) 75%; blank(2) 40%;