Reference no: EM132507637

Question 1: How the Income Statement Budget would be created for a year starting with the sales budget through the SG&A budget?

Needs to be specific in describing the component line items of each and identify the individuals that would be involved in developing the budgets.

Income Statement:

Revenues : 650,000

Operating Costs : 445,000

Gross Profit : 205,000

G&A Expenses : 75,000

Operating Income : 130,000

Other Expense : 60,000

Income Before provision of Income Taxes : 70,000

Provision for Income taxes : 5,000

Net Income : 65,000

Retained Earning, Beginning balance : 103,500

Net Income : 65,000

Retained Earning, Ending balance : 168,500