Explanation:
The preparation of budgeted Income statement is shown below:-
Budgeted Income statement
For the period ending 31 Dec 2020
Sales $2,487,100
Less: Cost of goods sold $1,219,440
($24 × 50,810)
Gross Profit $1,267,660
Less: Selling and administrative expenses $306,100
Income from operations $961,560
Less :Interest expense $12,010
Income before Income taxes $949,550
Less: Income tax expense $224,500
Net Income/Loss $725,050