{"id":1087,"date":"2021-04-14T00:58:27","date_gmt":"2021-04-14T00:58:27","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-managerialaccounting\/?post_type=chapter&#038;p=1087"},"modified":"2021-06-08T06:35:29","modified_gmt":"2021-06-08T06:35:29","slug":"budgeted-income-statement","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/chapter\/budgeted-income-statement\/","title":{"raw":"Budgeted Income Statement","rendered":"Budgeted Income Statement"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Prepare a budgeted income statement<\/li>\r\n<\/ul>\r\n<\/div>\r\n<img class=\"aligncenter wp-image-1478\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5469\/2021\/04\/10155818\/Screen-Shot-2021-05-10-at-8.57.58-AM-300x260.png\" alt=\"A flowchart titled \u201cTypes of Budgets\u201d. The budgeted income statement is highlighted in yellow. At the top is the sales budget. The sales budget has two arrows pointing to the production budget and the SG&amp;A budget. The production budget has three arrows pointing to the materials budget, labor budget, and manufacturing overhead budget. Those three budgets are all pointing to the cost of goods sold budget. The sales, production, materials, labor, manufacturing overhead, cost of goods sold, and SG&amp;A budget boxes are all blue and there is a bracket labeling those as the operating budget. Below the operating budget is a horizontal line showing the capital expenditures budget in red on the left, and going to the right from there, an arrow pointing to the cash budget, with another arrow pointing to the budgeted income statement, and a final arrow pointing to the budgeted balance sheet. The cash budget, budgeted income statement, and budgeted balance sheet are all green and there is a bracket labeling those as the financial budget. There are also arrows pointing from the cost of goods sold budget and the SG&amp;A budget to the cash budget.\" width=\"500\" height=\"433\" \/>\r\nIn order to prepare a standard multi-step income statement, you will use the information from the sales budget, cost of goods sold budget, and selling and administrative expense budget. These budgets could be prepared on a monthly, quarterly, or annual basis, but since this is the highest level of budgeting, we\u2019ll summarize for the year. It is likely that this version of the budget would be presented to the board of directors or other leaders, or to lenders and bond underwriters to show forecasted results of proposed future operations. Management is more likely to use the operating budgets to guide day-to-day decisions.\r\n\r\nThe budgeted income statement for GelSoft would look like this:\r\n<div align=\"left\">\r\n<table class=\"fin-table acctstatement fw\"><caption>GelSoft\r\nBudgeted Income Statement<\/caption>\r\n<thead>\r\n<tr class=\"u-sr-only\">\r\n<th scope=\"col\">Description<\/th>\r\n<th scope=\"col\">Total<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Sales Revenue<\/td>\r\n<td class=\"r\">$\u00a0\u00a05,861,770<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cost of Goods Sold<\/td>\r\n<td class=\"r\">3,801,264<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Gross Profit<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>2,060,506<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Selling, General, and Administrative Costs<\/td>\r\n<td class=\"r\">1,850,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net income before taxes<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>210,506<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Provision for income taxes @ 30%<\/td>\r\n<td class=\"r\">63,152<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Net income<\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$\u00a0\u00a0\u00a0\u00a0147,354<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n&nbsp;\r\n\r\nThis pro forma income statement is based on the sales budget that projected volume to increase by 5% each quarter, reflecting higher demand due to increased marketing, and a selling price for each seat set at $34 that is not scheduled to be increased during the budget period (year):\r\n<div align=\"left\">\r\n<table class=\"fin-table acctstatement fw\"><caption>GelSoft Sales Budget<\/caption>\r\n<tbody>\r\n<tr>\r\n<th class=\"r\" scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\r\n<th class=\"r\" scope=\"col\">Q1<\/th>\r\n<th class=\"r\" scope=\"col\">Q2<\/th>\r\n<th class=\"r\" scope=\"col\">Q3<\/th>\r\n<th class=\"r\" scope=\"col\">Q4<\/th>\r\n<th class=\"r\" scope=\"col\">Year<\/th>\r\n<\/tr>\r\n<\/tbody>\r\n<tbody>\r\n<tr>\r\n<td>Sales in Units<\/td>\r\n<td class=\"r\">40,000<\/td>\r\n<td class=\"r\">42,000<\/td>\r\n<td class=\"r\">44,100<\/td>\r\n<td class=\"r\">46,305<\/td>\r\n<td class=\"r\">172,405<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Budgeted Price<\/td>\r\n<td class=\"r\">$34<\/td>\r\n<td class=\"r\">$34<\/td>\r\n<td class=\"r\">$34<\/td>\r\n<td class=\"r\">$34<\/td>\r\n<td><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Sales in Dollars<\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,360,000<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,428,000<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,499,400<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,574,370<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$5,861,770<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n&nbsp;\r\n\r\nThe cost of goods sold was calculated as follows, from the production budget, the direct materials budget, the direct labor budget, and the manufacturing overhead budget:\r\n<div align=\"left\">\r\n<table class=\"fin-table acctstatement fw\">\r\n<tbody>\r\n<tr>\r\n<th class=\"r\" scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\r\n<th class=\"r\" scope=\"col\">Units<\/th>\r\n<th class=\"r\" scope=\"col\">Cost\/Unit<\/th>\r\n<th class=\"r\" scope=\"col\">Total Costs<\/th>\r\n<\/tr>\r\n<\/tbody>\r\n<tbody>\r\n<tr>\r\n<td>Beginning inventory<\/td>\r\n<td class=\"r\">30,000<\/td>\r\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a020.00<\/td>\r\n<td class=\"r\">$\u00a0 600,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Goods produced during the period<\/td>\r\n<td class=\"r\">158,605<\/td>\r\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a022.48<\/td>\r\n<td class=\"r\">3,565,440<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Goods available for sale<\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>188,605<\/td>\r\n<td><\/td>\r\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>4,165,440<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Less ending inventory<\/td>\r\n<td class=\"r\">16,200<\/td>\r\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a022.48<\/td>\r\n<td class=\"r\">364,176<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Cost of goods sold (FIFO)<\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>172,405<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$3,801,264<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n&nbsp;\r\n\r\nRemember that FIFO in this case means that we are assuming the units in beginning inventory were sold first. Companies may choose from a variety of cost flow assumptions, which would make the calculations different, but we won\u2019t delve into that here.\r\n\r\nSales minus cost of goods sold equals gross profit, which then goes to pay selling, general, and administrative costs (costs not associated with making the product):\r\n<div align=\"left\">\r\n<table class=\"fin-table acctstatement fw\"><caption>GelSoft\r\nSelling, General, and Administrative Budget<\/caption>\r\n<thead>\r\n<tr class=\"u-sr-only\">\r\n<th scope=\"col\">Description<\/th>\r\n<th scope=\"col\">Total<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Sales Salaries<\/td>\r\n<td class=\"r\">$ \u00a0 \u00a0 \u00a0450,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>General and Administrative Salaries<\/td>\r\n<td class=\"r\">950,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Payroll Taxes and Benefits<\/td>\r\n<td class=\"r\">120,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Depreciation on Office Equipment<\/td>\r\n<td class=\"r\">100,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Rent and Property Taxes<\/td>\r\n<td class=\"r\">150,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Office Repairs and Maintenance<\/td>\r\n<td class=\"r\">50,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Miscellaneous Expenses<\/td>\r\n<td class=\"r\">30,000<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Total Selling, General, and Administrative Expenses<\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$\u00a0 \u00a0 1,850,000<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\n&nbsp;\r\n\r\nThe subtotal of gross profit less SG&amp;A is called operating income.\r\n\r\nAny financing costs (interest expense), gains and losses on sale of equipment, and other non-operating expenses would be subtracted from operating income to get net income before the provision for income tax expense, which we are estimating here at 30%.\r\n\r\nThe bottom line for GelSoft for this particular budget year is that the company expects to make $147,354 after taxes.\r\n\r\nHere is a video demonstrating how to compile a budgeted income statement from the operating budget:\r\n\r\n[embed]https:\/\/youtu.be\/l5BBOZHhfjM[\/embed]\r\n\r\nYou can view the <a href=\"https:\/\/oerfiles.s3-us-west-2.amazonaws.com\/Managerial+Accounting\/Transcripts\/MasterBudgetBudgetedIncomeStatement_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for \"Master Budget: Budgeted Income Statement\" here (opens in new window)<\/a>.\r\n\r\nNow, check your understanding of the budgeted income statement.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\n[ohm_question hide_question_numbers=1]220606[\/ohm_question]\r\n\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Prepare a budgeted income statement<\/li>\n<\/ul>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1478\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5469\/2021\/04\/10155818\/Screen-Shot-2021-05-10-at-8.57.58-AM-300x260.png\" alt=\"A flowchart titled \u201cTypes of Budgets\u201d. The budgeted income statement is highlighted in yellow. At the top is the sales budget. The sales budget has two arrows pointing to the production budget and the SG&amp;A budget. The production budget has three arrows pointing to the materials budget, labor budget, and manufacturing overhead budget. Those three budgets are all pointing to the cost of goods sold budget. The sales, production, materials, labor, manufacturing overhead, cost of goods sold, and SG&amp;A budget boxes are all blue and there is a bracket labeling those as the operating budget. Below the operating budget is a horizontal line showing the capital expenditures budget in red on the left, and going to the right from there, an arrow pointing to the cash budget, with another arrow pointing to the budgeted income statement, and a final arrow pointing to the budgeted balance sheet. The cash budget, budgeted income statement, and budgeted balance sheet are all green and there is a bracket labeling those as the financial budget. There are also arrows pointing from the cost of goods sold budget and the SG&amp;A budget to the cash budget.\" width=\"500\" height=\"433\" \/><br \/>\nIn order to prepare a standard multi-step income statement, you will use the information from the sales budget, cost of goods sold budget, and selling and administrative expense budget. These budgets could be prepared on a monthly, quarterly, or annual basis, but since this is the highest level of budgeting, we\u2019ll summarize for the year. It is likely that this version of the budget would be presented to the board of directors or other leaders, or to lenders and bond underwriters to show forecasted results of proposed future operations. Management is more likely to use the operating budgets to guide day-to-day decisions.<\/p>\n<p>The budgeted income statement for GelSoft would look like this:<\/p>\n<div style=\"text-align: left;\">\n<table class=\"fin-table acctstatement fw\">\n<caption>GelSoft<br \/>\nBudgeted Income Statement<\/caption>\n<thead>\n<tr class=\"u-sr-only\">\n<th scope=\"col\">Description<\/th>\n<th scope=\"col\">Total<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Sales Revenue<\/td>\n<td class=\"r\">$\u00a0\u00a05,861,770<\/td>\n<\/tr>\n<tr>\n<td>Cost of Goods Sold<\/td>\n<td class=\"r\">3,801,264<\/td>\n<\/tr>\n<tr>\n<td>Gross Profit<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>2,060,506<\/td>\n<\/tr>\n<tr>\n<td>Selling, General, and Administrative Costs<\/td>\n<td class=\"r\">1,850,000<\/td>\n<\/tr>\n<tr>\n<td>Net income before taxes<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>210,506<\/td>\n<\/tr>\n<tr>\n<td>Provision for income taxes @ 30%<\/td>\n<td class=\"r\">63,152<\/td>\n<\/tr>\n<tr>\n<td>Net income<\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$\u00a0\u00a0\u00a0\u00a0147,354<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>This pro forma income statement is based on the sales budget that projected volume to increase by 5% each quarter, reflecting higher demand due to increased marketing, and a selling price for each seat set at $34 that is not scheduled to be increased during the budget period (year):<\/p>\n<div style=\"text-align: left;\">\n<table class=\"fin-table acctstatement fw\">\n<caption>GelSoft Sales Budget<\/caption>\n<tbody>\n<tr>\n<th class=\"r\" scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\n<th class=\"r\" scope=\"col\">Q1<\/th>\n<th class=\"r\" scope=\"col\">Q2<\/th>\n<th class=\"r\" scope=\"col\">Q3<\/th>\n<th class=\"r\" scope=\"col\">Q4<\/th>\n<th class=\"r\" scope=\"col\">Year<\/th>\n<\/tr>\n<\/tbody>\n<tbody>\n<tr>\n<td>Sales in Units<\/td>\n<td class=\"r\">40,000<\/td>\n<td class=\"r\">42,000<\/td>\n<td class=\"r\">44,100<\/td>\n<td class=\"r\">46,305<\/td>\n<td class=\"r\">172,405<\/td>\n<\/tr>\n<tr>\n<td>Budgeted Price<\/td>\n<td class=\"r\">$34<\/td>\n<td class=\"r\">$34<\/td>\n<td class=\"r\">$34<\/td>\n<td class=\"r\">$34<\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td>Sales in Dollars<\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,360,000<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,428,000<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,499,400<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$1,574,370<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$5,861,770<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>The cost of goods sold was calculated as follows, from the production budget, the direct materials budget, the direct labor budget, and the manufacturing overhead budget:<\/p>\n<div style=\"text-align: left;\">\n<table class=\"fin-table acctstatement fw\">\n<tbody>\n<tr>\n<th class=\"r\" scope=\"col\"><span class=\"u-sr-only\">Description<\/span><\/th>\n<th class=\"r\" scope=\"col\">Units<\/th>\n<th class=\"r\" scope=\"col\">Cost\/Unit<\/th>\n<th class=\"r\" scope=\"col\">Total Costs<\/th>\n<\/tr>\n<\/tbody>\n<tbody>\n<tr>\n<td>Beginning inventory<\/td>\n<td class=\"r\">30,000<\/td>\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a020.00<\/td>\n<td class=\"r\">$\u00a0 600,000<\/td>\n<\/tr>\n<tr>\n<td>Goods produced during the period<\/td>\n<td class=\"r\">158,605<\/td>\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a022.48<\/td>\n<td class=\"r\">3,565,440<\/td>\n<\/tr>\n<tr>\n<td>Goods available for sale<\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>188,605<\/td>\n<td><\/td>\n<td class=\"r line-single\"><span class=\"u-sr-only\">Single Line<\/span>4,165,440<\/td>\n<\/tr>\n<tr>\n<td>Less ending inventory<\/td>\n<td class=\"r\">16,200<\/td>\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a022.48<\/td>\n<td class=\"r\">364,176<\/td>\n<\/tr>\n<tr>\n<td>Cost of goods sold (FIFO)<\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>172,405<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$3,801,264<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>Remember that FIFO in this case means that we are assuming the units in beginning inventory were sold first. Companies may choose from a variety of cost flow assumptions, which would make the calculations different, but we won\u2019t delve into that here.<\/p>\n<p>Sales minus cost of goods sold equals gross profit, which then goes to pay selling, general, and administrative costs (costs not associated with making the product):<\/p>\n<div style=\"text-align: left;\">\n<table class=\"fin-table acctstatement fw\">\n<caption>GelSoft<br \/>\nSelling, General, and Administrative Budget<\/caption>\n<thead>\n<tr class=\"u-sr-only\">\n<th scope=\"col\">Description<\/th>\n<th scope=\"col\">Total<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Sales Salaries<\/td>\n<td class=\"r\">$ \u00a0 \u00a0 \u00a0450,000<\/td>\n<\/tr>\n<tr>\n<td>General and Administrative Salaries<\/td>\n<td class=\"r\">950,000<\/td>\n<\/tr>\n<tr>\n<td>Payroll Taxes and Benefits<\/td>\n<td class=\"r\">120,000<\/td>\n<\/tr>\n<tr>\n<td>Depreciation on Office Equipment<\/td>\n<td class=\"r\">100,000<\/td>\n<\/tr>\n<tr>\n<td>Rent and Property Taxes<\/td>\n<td class=\"r\">150,000<\/td>\n<\/tr>\n<tr>\n<td>Office Repairs and Maintenance<\/td>\n<td class=\"r\">50,000<\/td>\n<\/tr>\n<tr>\n<td>Miscellaneous Expenses<\/td>\n<td class=\"r\">30,000<\/td>\n<\/tr>\n<tr>\n<td>Total Selling, General, and Administrative Expenses<\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single Line<\/span>$\u00a0 \u00a0 1,850,000<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>The subtotal of gross profit less SG&amp;A is called operating income.<\/p>\n<p>Any financing costs (interest expense), gains and losses on sale of equipment, and other non-operating expenses would be subtracted from operating income to get net income before the provision for income tax expense, which we are estimating here at 30%.<\/p>\n<p>The bottom line for GelSoft for this particular budget year is that the company expects to make $147,354 after taxes.<\/p>\n<p>Here is a video demonstrating how to compile a budgeted income statement from the operating budget:<\/p>\n<p><iframe loading=\"lazy\" id=\"oembed-1\" title=\"Master Budget: Budgeted Income Statement\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/l5BBOZHhfjM?feature=oembed&#38;rel=0\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>You can view the <a href=\"https:\/\/oerfiles.s3-us-west-2.amazonaws.com\/Managerial+Accounting\/Transcripts\/MasterBudgetBudgetedIncomeStatement_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for &#8220;Master Budget: Budgeted Income Statement&#8221; here (opens in new window)<\/a>.<\/p>\n<p>Now, check your understanding of the budgeted income statement.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p><iframe loading=\"lazy\" id=\"ohm220606\" class=\"resizable\" src=\"https:\/\/ohm.lumenlearning.com\/multiembedq.php?id=220606&theme=oea&iframe_resize_id=ohm220606\" width=\"100%\" height=\"150\"><\/iframe><\/p>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-1087\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Budgeted Income Statement. <strong>Authored by<\/strong>: Joseph Cooke. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">All rights reserved content<\/div><ul class=\"citation-list\"><li>Managerial Accounting: Budgeted Income Statement. <strong>Authored by<\/strong>: Professor Alldredge. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/youtu.be\/l5BBOZHhfjM\">https:\/\/youtu.be\/l5BBOZHhfjM<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":364389,"menu_order":19,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Budgeted Income Statement\",\"author\":\"Joseph Cooke\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"copyrighted_video\",\"description\":\"Managerial Accounting: Budgeted Income Statement\",\"author\":\"Professor Alldredge\",\"organization\":\"\",\"url\":\"https:\/\/youtu.be\/l5BBOZHhfjM\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-1087","chapter","type-chapter","status-publish","hentry"],"part":33,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/chapters\/1087","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/wp\/v2\/users\/364389"}],"version-history":[{"count":8,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/chapters\/1087\/revisions"}],"predecessor-version":[{"id":2116,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/chapters\/1087\/revisions\/2116"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/parts\/33"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/chapters\/1087\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/wp\/v2\/media?parent=1087"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=1087"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/wp\/v2\/contributor?post=1087"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-managerialaccounting\/wp-json\/wp\/v2\/license?post=1087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}