Reference no: EM133006228

Problem - Just Soft Limited is a software consulting company. Below is list of income and expenses for the company for the year ended December 2020.

$

Income Consulting fees 1,050,000

Expenses

Accounting fees 6,000

Advertising 20,000

Bank charges 2,500

Depreciation 12,000

FNU levy 1,300

General expense 15,500

Income tax expense 130,000

Interest on loan expense 20,000

Internet 15,000

Rent 20,000

Superannuation 13,000

Telephone expense 12,500

Utilities 11,000

Wages & salaries 130,000

Expectations for the following year are as follows:

Consulting fees to rise by 6%

Accounting expenses are expected to increase by 12.5%

Rent will increase by 15%

Wages & salaries and related expenses will increase by 7.5%

Advertising to be 5% of sales

Depreciation will increase due to projected capital additions of $100,000 which will be deprecated at 15% pa (rate didn't change)

Interest on loan is calculated on the principal amount drawn. The loan is expected to be paid off by June 2021.

Income tax expense will be 20% of the profit before tax

All other expenses are expected to same for 2021

Required - Prepare the income statement budget for 2021. Layout/Format of the income statement should be such that the following sub-totals/totals are shown: PBT, PAT.