Preparing a budgeted income statement

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Reference no: EM131219120

Calgary Industries is preparing a budgeted income statement for 2015 and has accumulated the following information. Predicted sales for the year are $770,000 and cost of goods sold is 40% of sales. The expected selling expenses are $85,000 and the expected general and administrative expenses are $94,000, which includes $27,000 of depreciation. The companies income tax rate is 30%. The budgeted net income for 2015 is:

a) $462,000.

b) $198,100.

c) $84,900.

d) $283,000.

e) $85,500.

Reference no: EM131219120

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