Balboa, Inc. provided the following budgeted information for June through October: June $22,320 $24,300 $25,920 $21,870 Projected sales July 107,400 $ 126,200 $ 81,200 $ 88,800 $ 13,000 $ 11,000 $ 15,000 $ Projected merchandise purchases Inventory at end of month Balboa estimates that it will collect 25% of its sales in the month of sale and 75% in the month after the sale. General operating expenses are budgeted to be $41,500 per month of which depreciation is $4,500 of this amount. Balboa pays operating expenses in the month incurred. The income tax rate is 10%. How much is budgeted net income for September? August $ $ $ September October 137,500 $ 71,200 $ 14,500 $ 155,100 $ 81,600 $ 148,100 79,300 15,100
Balboa, Inc. provided the following budgeted information for June through October: June $22,320 $24,300 $25,920 $21,870 Projected sales July 107,400 $ 126,200 $ 81,200 $ 88,800 $ 13,000 $ 11,000 $ 15,000 $ Projected merchandise purchases Inventory at end of month Balboa estimates that it will collect 25% of its sales in the month of sale and 75% in the month after the sale. General operating expenses are budgeted to be $41,500 per month of which depreciation is $4,500 of this amount. Balboa pays operating expenses in the month incurred. The income tax rate is 10%. How much is budgeted net income for September? August $ $ $ September October 137,500 $ 71,200 $ 14,500 $ 155,100 $ 81,600 $ 148,100 79,300 15,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Balboa, Inc. provided the following budgeted information for June through October:
June
$
$
$
July
$22,320
$24,300
$25,920
$21,870
September
Projected sales
107,400 $
81,200 $
13,000 $
August
126,200 $
88,800 $
11,000 $
15,000 $
Projected merchandise purchases
Inventory at end of month
Balboa estimates that it will collect 25% of its sales in the month of sale and 75% in the month after the sale. General operating expenses
are budgeted to be $41,500 per month of which depreciation is $4,500 of this amount. Balboa pays operating expenses in the month
incurred. The income tax rate is 10%. How much is budgeted net income for September?
October
155,100 $
81,600 $
137,500 $
71,200 $
14,500 $
148,100
79,300
15,100
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