Compute the budgeted net income

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Question - Calgary Industries is preparing a budgeted income statement for 2018 and has accumulated the following information. Predicted sales for the year are $700,000 and cost of goods sold is 40% of sales. The expected selling expenses are $78,000 and the expected general and administrative expenses are $87,000, which includes $20,000 of depreciation. The company's income tax rate is 30%. Compute the budgeted net income for 2018?

a. $420,000.

b. $178,500.

c. $255,000.

d. $85,100.

e. $76,500.

Reference no: EM132532193

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