Budgeting Basics and Beyond

6.12. Budgeted Income Statement

The budgeted income statement summarizes the various component projections of revenue and expenses for the budgeting period. However, for control purposes, the budget can be divided into quarters or even months, depending on the need.

Schedule 9

Table 6.9. THE PUTNAM COMPANY Budgeted Income Statement For the Year Ended December 31, 20B

From Schedule
Sales (6,000 units @$150)			$900,000
Less: Cost of goods sold:
Beginning finished goods inventory	10	$16,400
Add: Cost of goods manufactured (6,100 units @$82)	6	500,200
Cost of goods available for sale		516,600
Less: Ending finished goods inventory	6	(24,600)	$492,000
Gross margin			$408,000
Less: Selling and administrative expense	7		278,000
Operating income			130,000
Less: Interest expense	8		5,625
Net income before taxes			124,375
Less: income taxes			60,000[]
Net income after taxes			$ 64,375
[]

^[] Estimated.