Calgary Industries is preparing a budgeted income statement for 2018 and has accumulated the following information. Predicted sales for the year are $690,000 and cost of goods sold is 40% of sales. The expected selling expenses are $77,000 and the expected general and administrative expenses are $86,000, which includes $19,000 of depreciation. The company's income tax rate is 30%. The budgeted net income for 2018 is: a) $414,000.
b) $175,700.
c) $251,000
d) $84,900.
e) $75,300.

b. $175,700

Explanation:

Calgary Industries's budgeted net income for 2018 is computed as per the information above;

Sales

$690,000

Variable costs

(40% × $690,000)

($276,000)

Selling expenses

($77,000)

Administrative expenses

($86,000)

Earnings before taxes

$251,000

Income tax expense

(30% × $251,000)

($75,300)

Net income

$175,700

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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