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Coral Seas Jewelry Company makes and sells costume Jewelry. For the coming year, Coral Seas...

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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 coming year. Enter your answers in dollars and not in millions Coral Seas Jewelry Company Budgeted Income Statement For the Coming Year Gross margin Less: Operating income 2. What if Coral Seas had interest payments of $500,000 during the year? What effect would that have an operating income? On Income before taxes? On net income? If no effect, select "no impact and enter "0 Operating income to Income before taxes to Net income to

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