Explain how to prepare Budgeted income statement Solution steps: 1 calculate budgeted net sales first 2Calculate Budgeted cost of goods sold 3 calculate budgeted sales expenses 4calculate budgeted administration expenses 5 calculate budgeted other expenses and corporate tax. Now put all this figures in Budgeted income statement .

1. Explain how to prepare Budgeted income statement
Solution
steps:
1 calculate budgeted net sales first
2Calculate Budgeted cost of goods sold
3 calculate budgeted sales expenses
4calculate budgeted administration expenses
5 calculate budgeted other expenses and corporate tax.
Now put all this figures in Budgeted income statement
Budgeted revenue A
Less:Budgeted cost of goods sold B
Gross margin (C) A-B
Less:Operating expenses
Budgeted selling expenses   (D)
Budgeted admnistration expenses (E)
Budgeted other expenses (fF)
Income from operations      G= C- D-E-F)
Less:Budgeted corporate tax   (H)
Net income G-H