Gudgeted Income Statement Coral Seas Jewelry Company makes and sells costume jeweiry. For the coming...
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Gudgeted Income Statement Coral Seas Jewelry Company makes and sells costume jeweiry. For the coming year, Coral Seas expects sales of $19,700,000 and cost of 900ds sold of $10,835,000. Advertising is a key part of Coral Seas' business strategr, and total marketing expense for the year is budgeted at $3,546,000, Total administrative expenses are expected to be $788,000. Coral Seas has no interest expense. Income taxes are pald at the rate of 40 percent of operating income. Required: 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. 2. What if Coral Seas had interest payments of $591,000 during the year? what effect would that have on operating income? On income before taxes? On net income? If no effect, select "no impact" and enter " 0 ". Operating income to 5 Income before taxes to s Net income to 5
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