North Company has completed all of its operating budgets. The sales budget for the year shows 50,160 units and total sales of $2,228,200. The total unit cost of making one unit of sales is $24. Selling and administrative expenses are expected to be $309,200. Interest is estimated to be $12,710. Income taxes are estimated to be $226,800. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020.

North Company

Budgeted multiple-step income statement for the year ending December 31, 2020

Sales of                                               $2,228,200

Cost of Goods Sold ($24 x 50,160)  ($1,203,840)

Gross Profit                                                               $1,024,360

Operating Expenses:

Selling and administrative expenses                     ($309,200)

Operating Income                                                    $715,160

Non-Operating Expenses:

Interest  Expense                                                     ($12,710)  

Operating Income before tax                                  $702,450

Income taxes                                                            ($226,800)

Operating Income after Tax                                     $475,650

Explanation:

Multi-step Income statement segregate the Operating Income and Expenses from non operating Income and Expense. It shows the gross profit and net operating income separately.

all of them make sense but, i would have to say ask someone who has been there/or lives there, and/or read recent newspapers from that city.

hope this !