Information from the operating budgets of Northwest Industries follows: If Northwest's income tax rate is 40%, what is the budgeted net income?

Question

Information from the operating budgets of Northwest Industries follows:  If Northwest's income tax rate is 40%, what is the budgeted net income?

Quizplus · Accepted Answer

The budgeted income statement for Northwest Industries would be as follows:
 11eb16ac_e00a_eb55_984d_45a70da510c9_TB6154_00 Note that the amounts from the factory overhead and direct labor budgets would have already been included in the amount shown in the cost of goods sold budget.

Information from the Operating Budgets of Northwest Industries Follows