Please demonstrate which line item on which financial statement will be impacted by 1) Sales Budget;...

Please demonstrate which line item on which financial statement will be impacted by

1) Sales Budget;

2) Production budget;

3) SG&A;

Solutions

Expert Solution

Sales Budget will impact:-

1. Profit & Loss Statement:- On Profit & Loss Statement, Net Sales / Revenue will be impacted

2. Balance Sheet:- On Balance Sheet, Current Assets in Assets Head (In the form of Debtor Receivables) will be impacted

3. Cash Flow:- On Cash Flow, Cash Flow from Operating Activities (Direct Method: Cash Receipts from Customers) will be impacted

Production Budget will impact:-

1. Profit & Loss Statement:- On Profit & Loss Statement, Cost of Goods Sold will be impacted

2. Balance Sheet:- On Balance Sheet, Current Assets in Assets Head will be impacted

3. Cash Flow:- On Cash Flow, Increase / Decrease in Inventories will be impacted

Selling, General & Administrative Expenses (SG&A):-

1. Profit & Loss Statement:- On Profit & Loss Statement, Expenses will be impacted

2. Balance Sheet:- On Balance Sheet, Current Assets in Assets Head (In the form of Prepaid Expenses) will be impacted

3. Cash Flow:- On Cash Flow, Cash Flow from Operating Activities(indirectly) will be impacted

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Describe the difference between a line item budget and a performance budget

Which line item is not an expense? A. Sales and Marketing B. General and Administrative C....

Which line item is not an expense? A. Sales and Marketing B. General and Administrative C. Property, Plant, and Equipment D. Training and Professional Development Which financial report most used by nonfinancial managers. A. Balance Sheet B. Cash Flow Statement C. Income Statement D. Statement of Retained Earnings What are the different names for the income statement? Select all that apply: A. Profit and Loss Statement B. Gross Profit and Loss Statement C. Net Margin Statement D. Statement of income...

-budgeted income statement – direct materials budget – production budget – sales budget -sales budget –...

-budgeted income statement – direct materials budget – production budget – sales budget -sales budget – production budget – direct materials budget – budgeted income statement Who would typically be responsible for the direct material quantity variance? -the production manager -the chief financial officer -the purchasing manager -the human resources manager Which of the following is not a component of the operating budget? -sales budget -selling and administrative budget -Budgeted balance sheet -raw materials purchases budget Top-down budgeting is: -when...

Determine which financial statement is impacted by the transactions listed below -A.B.C.D. On March 31st, purchased...

Determine which financial statement is impacted by the transactions listed below -A.B.C.D. On March 31st, purchased 12 months of rent for $3,200 -A.B.C.D. On April 1st paid $4,200 on accounts payable. -A.B.C.D. Billed client for $12,000 on April 14th for services provided. -A.B.C.D. On April 31st we paid the utility bill for $650 -A.B.C.D. On April 20, purchased Furniture for the new office wing that cost $45,000; paid $15,000 cash and signed a two-year note for the balance. -A.B.C.D. Reese...

1. Are capital assets reported as a line-item in the government-wide statement of net position? Are...

1. Are capital assets reported as a line-item in the government-wide statement of net position? Are nondepreciable capital assets reported on a separate line from depreciable capital assets, or are they separately reported in the notes to the financial statements? Does the disclosure show beginning balances, increases and decreases, and ending balances for each major class of capital assets, as well as the same information for accumulated depreciation for each major class? Are these disclosures presented separately for the capital...

Which one of the following statements about the budget line is false? The budget line is...

Which one of the following statements about the budget line is false? The budget line is based on fixed income. A is based on fixed prices. B Is based on fixed quantities. C separates affordable consumption points from unaffordable consumption points. D constrains consumer choices.

Which of the following is true regarding line-item budgets? a. Line-item budgets reduce possible managerial opportunism...

Which of the following is true regarding line-item budgets? a. Line-item budgets reduce possible managerial opportunism and are prevalent in governments b. All of the answers are correct c. Line-item budgets reduce agency problems d. Line-item budgets refer to to budgets that authorize the manager to spend only up to the specified amount on each line item

The most conservative way of measuring cash position is reflected by which line item or line...

The most conservative way of measuring cash position is reflected by which line item or line items on the balance sheet? A. Cash and cash equivalents B. Accounts receivable C. Retained earnings D. Current assets

1) The study of au individual financial statement item over several accounting periods is called: A)...

1) The study of au individual financial statement item over several accounting periods is called: A) Time and motion analysis.C) Horizontal analysis. B) Ratio analysis. D) Ve1tical analysis. 2) Financial statement analysis involves forms of comparison including A) Co111paring key relationships within the same year. B) Comparing changes in the same item over a uu111ber of periods. C)o111paring key items to industry averages. D) All of these answer choices are correct. 3) Select the c01Tect statement regarding ve1tical analysis. 3)...

1 In the audit of sales account, the amount presented on the financial statement is $5,000,000....

1 In the audit of sales account, the amount presented on the financial statement is $5,000,000. You are the auditor and you have determined the level of materiality of sales account to be $50,000. Q. Assuming you have checked the sales account and have detected that client recorded a sale transaction of $40,000 that did not actually occur during the year. - What management assertions is violated (i.e. at risk) - What would you do if you have determined that...

Subjects