Use the following information to prepare a budgeted income statement for Stellar Company for the month of June.a. Beginning cash balance on June 1 is $52,000.b. Sales amounts are: April (actual), $1,450,000, May (actual), $1,600,000, and June (budgeted), $1,700,000.c. Cost of goods sold is 53% of sales.d. Budgeted cash payments for salaries in June: $260,000. Salaries payable on May 31 are $60,000 and are expected to be $50,000 on June 30.e. Budgeted depreciation expense for June: $24,000.f. Other cash expenses budgeted for June: $282,000.g. Accrued income taxes due in June: $48,000.h. Bank loan interest due in June: $8,000 which represents the 1% monthly expense on a bank loan of $800,000.i. The income tax rate applicable to the company is 30%.
What will be an ideal response?
| Stellar Company Budgeted Income Statement For the Month Ended June 30 | ||
| Sales ………………………………………….. | ? | $1,700,000 |
| Cost of goods sold ($1,700,000 ? .53) ……….. | ? | 901,000 |
| Gross profit …………………………………… | ? | 799,000 |
| Operating expenses: | ? | ? |
| Salaries expense ($260,000 - $10,000) …….. | $250,000 | ? |
| Depreciation expense ………………………. | 24,000 | ? |
| Other operating expense …………………… | 282,000 | ? |
| Interest expense ……………………………. | 8,000 | ? |
| Total expenses ……………………………... | ? | 564,000 |
| Income before income taxes …………………. | ? | 235,000 |
| Income taxes expense (30%) ………………… | ? | (70,500) |
| Net income ………………………………….... | ? | $164,500 |
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