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Budgeted Income Statement Coral Seas Jewelry Company makes and sells costume jewelry. For the coming...

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Budgeted Income Statement Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of $15.9 million and cost of goods sold of $8.75 million. Advertising is a key part of Coral Seas' business strategy, and total marketing expense for the year is budgeted at $2.8 million. Total administrative expenses are expected to be $675,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income Required: 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the corning year. Enter your answers in dollars and not in millions, Coral Seas Jewelry Company Budgeted Income Statement For the Coming Year Gross margin Less: Vodi joo Operating income 2. What if Coral Seas had interest payments of $500,000 during the year? What effect would that have on operating Income? On income before taxes 7 On net income? If no effect, select "no impact" and enter"0". Operating Income Income before taxes to to Net income to

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