1. Cost & Management Accounting
Lecture-37

2. Income Statement Sales xxx Less Cost of goods sold (xxx)
Gross profit xxx
Less Operating expenses
Administrative expenses xxx
Selling expenses xxx
xxx
Profit from operation xxx
Less Financial charges (xxx)
Add Other income xxx
Profit before tax xxx
It will appear one by one means
First sales
Second Cost of goods sols
Third gross profit and so on.

3. Budgeted Income Statement
Sales ,60,000
Less Cost of goods sold
Direct material ,000
Direct labor ,000
Fixed FOH ,000
Variable FOH ,000
Cost of goods manufactured ,80,000
Add opening finished goods inventory (60,000)
Less Closing finished goods inventory 40,000
Cost of goods sold ,00,000
Gross profit ,000
Less Operating expenses
Selling expenses
Fixed 5,000
Variable 10,000
15,000
Administrative expenses
Fixed 12,000
Variable 8,000
20,000
35,000
Profit from operation ,000
Less Financial charges ,000
Profit before tax ,000 x 40%
Less Tax ,000
Budgeted Net Profit ,000
Same the data in last slide will appear in this slid
First Sales
Second Cost of goods sold and so on
At end the tax rate that is 40%, it will appear after the appearance of 20,000 and than tax rate 40%