Question
In: Accounting
Exercise 20-34 Budgeted income statement LO P3 Fortune, Inc., is preparing its master budget for the...
Exercise 20-34 Budgeted income statement LO P3
Fortune, Inc., is preparing its master budget for the first
quarter. The company sells a single product at a price of $25 per
unit. Sales (in units) are forecasted at 37,000 for January, 57,000
for February, and 47,000 for March. Cost of goods sold is $12 per
unit. Other expense information for the first quarter
follows.
| Commissions | 11 | % | of sales dollars | ||
| Rent | $ | 22,000 | per month | ||
| Advertising | 14 | % | of sales dollars | ||
| Office salaries | $ | 75,000 | per month | ||
| Depreciation | $ | 52,000 | per month | ||
| Interest | 10 | % | annually on a $250,000 note payable | ||
| Tax rate | 40 | % | |||
Prepare a budgeted income statement for this first quarter.
(Round your final answers to the nearest whole
dollar.)
Solutions
Expert Solution
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ekkarill92 answered 2 years agoRelated Solutions
Exercise 20-32A Merchandising: Cash budget LO P4 Kelsey is preparing its master budget for the quarter...
Exercise 20-32A Merchandising: Cash budget LO P4
Kelsey is preparing its master budget for the quarter ended
September 30. Budgeted sales and cash payments for merchandise for
the next three months follow.
Budgeted
July
August
September
Sales
$
63,200
$
80,800
$
48,800
Cash payments for merchandise
42,000
32,800
33,600
Sales are 20% cash and 80% on credit. All credit sales are
collected in the month following the sale. The June 30 balance
sheet includes balances of $13,100 in cash;...
Exercise 20-32A Merchandising: Cash budget LO P4 Kelsey is preparing its master budget for the quarter...
Exercise 20-32A Merchandising: Cash budget LO P4
Kelsey is preparing its master budget for the quarter ended
September 30. Budgeted sales and cash payments for merchandise for
the next three months follow:
Budgeted
July
August
September
Sales
$
63,500
$
80,500
$
48,500
Cash payments for merchandise
41,400
33,100
33,900
Sales are 15% cash and 85% on credit. All credit sales are
collected in the month following the sale. The June 30 balance
sheet includes balances of $12,800 in cash;...
Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single...
Fortune, Inc., is preparing its master budget for the first
quarter. The company sells a single product at a price of $25 per
unit. Sales (in units) are forecasted at 41,000 for January, 61,000
for February, and 51,000 for March. Cost of goods sold is $12 per
unit. Other expense information for the first quarter follows.
Commissions
9
%
of sales
dollars
Rent
$
18,000
per month
Advertising
13
%
of sales dollars
Office salaries
$
72,000
per month
Depreciation...
Castor, Inc., is preparing its master budget for the quarter ended June 30. Budgeted sales and...
Castor, Inc., is preparing its master budget for the quarter
ended June 30. Budgeted sales and cash payments for merchandise for
the next three months follow:
Budgeted
April
May
June
Sales
$
30,800
$
41,200
$
25,200
Cash payments for merchandise
22,600
15,600
16,000
Sales are 75% cash and 25% on credit. All credit sales are
collected in the month following the sale. The March 31 balance
sheet includes balances of $13,200 in cash, $13,200 in accounts
receivable, $12,200 in...
Castor, Inc., is preparing its master budget for the quarter ended June 30. Budgeted sales and...
Castor, Inc., is preparing its master budget for the quarter
ended June 30. Budgeted sales and cash payments for merchandise for
the next three months follow:
Budgeted
April
May
June
Sales
$
30,800
$
41,200
$
25,200
Cash payments for merchandise
22,600
15,600
16,000
Sales are 75% cash and 25% on credit. All credit sales are
collected in the month following the sale. The March 31 balance
sheet includes balances of $13,200 in cash, $13,200 in accounts
receivable, $11,000 in...
Castor, Inc., is preparing its master budget for the quarter ended June 30. Budgeted sales and...
Castor, Inc., is preparing its master budget for the quarter
ended June 30. Budgeted sales and cash payments for merchandise for
the next three months follow:
Budgeted
April
May
June
Sales
$
31,000
$
41,000
$
25,000
Cash payments for
merchandise
22,200
15,800
16,200
Sales are 70% cash and 30% on credit. All credit sales are
collected in the month following the sale. The March 31 balance
sheet includes balances of $13,000 in cash, $13,000 in accounts
receivable, $11,000 in...
Castor, Inc., is preparing its master budget for the quarter ended June 30. Budgeted sales and...
Castor, Inc., is preparing its master budget for the quarter
ended June 30. Budgeted sales and cash payments for merchandise for
the next three months follow:
Budgeted
April
May
June
Sales
$
30,000
$
42,000
$
26,000
Cash payments for
merchandise
24,200
14,800
13,500
Sales are 80% cash and 20% on credit. All credit sales are
collected in the month following the sale. The March 31 balance
sheet includes balances of $14,000 in cash, $14,000 in accounts
receivable, $11,000 in...
Budgeted Income Statement Pendleton Company, a merchandising company, is developing its master budget for 2015. The...
Budgeted Income Statement
Pendleton Company, a merchandising company, is developing its
master budget for 2015. The income statement for 2014 is as
follows:
Pendleton Company
Income Statement
For Year Ending December 31, 2014
Gross sales
$1,500,000
Less: Estimated uncollectible
accounts
(30,000)
Net sales
1,470,000
Cost of goods sold
(825,000)
Gross profit
645,000
Operating expenses (including
$25,000 depreciation)
(375,000)
Net income
$270,000
The following are management’s goals and forecasts for 2015:
1.
Selling prices will increase by 6
percent, and sales...
Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of...
Problem 20-4A Manufacturing: Preparation of a complete master
budget LO P1, P2, P3
The management of Zigby Manufacturing prepared the following
estimated balance sheet for March 2017:
ZIGBY MANUFACTURING
Estimated Balance Sheet
March 31, 2017
Assets
Cash
$
65,000
Accounts receivable
434,850
Raw materials inventory
87,505
Finished goods inventory
374,640
Total current assets
961,995
Equipment, gross
624,000
Accumulated depreciation
(162,000
)
Equipment, net
462,000
Total assets
$
1,423,995
Liabilities and Equity
Accounts payable
$
199,405
Short-term notes payable
24,000
Total...
Problem 20-4A Manufacturing: Preparation of a complete master budget LO P1, P2, P3 The management of...
Problem 20-4A Manufacturing: Preparation of a complete master
budget LO P1, P2, P3
The management of Zigby Manufacturing prepared the following
estimated balance sheet for March 2017:
ZIGBY MANUFACTURING
Estimated Balance Sheet
March 31, 2017
Assets
Cash
$
80,000
Accounts receivable
364,000
Raw materials inventory
96,000
Finished goods inventory
364,800
Total current assets
904,800
Equipment, gross
610,000
Accumulated depreciation
(155,000
)
Equipment, net
455,000
Total assets
$
1,359,800
Liabilities and Equity
Accounts payable
$
195,500
Short-term notes payable
17,000
Total...
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