Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows: Sales Budget Cash Sales Sales on Account Multiple Choice O Bright Minds expects to collect 70% of the sales on account in the month of sale, 20% in the month following the sale, and the remainder in the second month following the sale. What is the amount of sales revenue that the company will report on the second quarter pro forma income statement? $1,491,000 $1,118,800 $1,351,000 April 60,000 400,000 460,000 $1,261,800 May 55,000 456,000 511,000 June 85,000 435,000 520,000

Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three months of operations are as follows: Sales Budget Cash Sales Sales on Account Multiple Choice O Bright Minds expects to collect 70% of the sales on account in the month of sale, 20% in the month following the sale, and the remainder in the second month following the sale. What is the amount of sales revenue that the company will report on the second quarter pro forma income statement? $1,491,000 $1,118,800 $1,351,000 April 60,000 400,000 460,000 $1,261,800 May 55,000 456,000 511,000 June 85,000 435,000 520,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ABC Company's actual unit sales in the current year for January, February, and March were 16,500, 13,500, and 19,500 units, respectively. Current year selling price is $20. An analysis of general economic trends and specific initiatives at ABC forecasts increases for the coming budget year: sales volume by 10% and sales price by 5%. Required: Prepare ABC Company's budgeted unit sales and total sales volume for the first quarter of the coming year. Current sales (units) Budgeted volume increase Budgeted sales (units) Budgeted selling price Budgeted total sales January $ 0 % February $ 0 % $ March 0 % $ Total 0 %
Budget Preparation Collins Company is preparing its master budget for April. Use the given estimates to determine the amounts necessary for each of the following requirements. (Estimates may be related to more than one requirement.) a. What should total sales revenue be if territories A and B estimate sales of 10,000 and 13,000 units, respectively, and the unit selling price is $43? $ b. If the beginning finished goods inventory is an estimated 2,000 units and the desired ending inventory is 3,000 units, how many units should be produced? c. What dollar amount of material should be purchased at $4 per pound if each unit of product requires 3 pounds and beginning and ending materials inventories should be 5,000 and 4,000 pounds, respectively? $ d. How much direct labor cost should be incurred if each unit produced requires 1.5 hours at an hourly rate of $14? e. How much manufacturing overhead should be incurred if fixed manufacturing overhead is $52,000 and variable manufacturing…
FRANCORP is preparing budgets for the quarter ending March 31. Budgeted sales for the next 5 months are as follows: January February March April May 16250 units 16950 units 17200 units 18350 units 17900 units The selling price per unit is $15. Determine the total budgeted sales for the month of March. O $195.500 O $200,900 $238,550 O $258,000
Gibson Corporation’s balance sheet indicates that the company has $580,000 invested in operating assets. During the year, Gibson earned operating income of $67,280 on $1,160,000 of sales. Required Compute Gibson’s profit margin for the year. Compute Gibson’s turnover for the year. Compute Gibson’s return on investment for the year. Recompute Gibson’s ROI under each of the following independent assumptions:(1) Sales increase from $1,160,000 to $1,392,000, thereby resulting in an increase in operating income from $67,280 to $76,560.(2) Sales remain constant, but Gibson reduces expenses, resulting in an increase in operating income from $67,280 to $69,600.(3) Gibson is able to reduce its invested capital from $580,000 to $464,000 without affecting operating income.
Folgerty Enterprises prepared the following sales budget: Month Budgeted Sales March $6,000 April $13,000 May $12,000 June $14,000 The expected gross profit rate is 30% and the inventory at the end of February was $10,000. Desired finished goods inventory levels at the end of the month are 20% of the next month's cost of goods sold. What is the desired beginning finished goods inventory on June 1 (in dollars)? Select one: a. $1,960 b. $840 c. $1,680 d. $9,800 e. $1,860
Walker Company prepares monthly budgets. Company policy is to end each month with merchandise inventory equal to 15% of budgeted unit sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Beginning inventory on July 1 is 27,000 units. The company budgets sales of 200,000 units in October. The merchandise cost per unit is $2. Budgeted sales units. Units to purchase July 180,000 200,250 August 315,000 308,250 September 270,000 259,500 Prepare the merchandise purchases budgets for the months of July, August, and September. WALKER COMPANY Merchandise Purchases Budget July August September Next period budgeted sales units Ratio of inventory to future sales 0 0 0 Total required units Units to purchase Cost per unit Cost of merchandise purchases
please step by step answer.
FRANCORP is preparing budgets for the quarter ending March 31. Budgeted sales for the next 5 months are as follows: January February March 16250 units 16950 units 17200 units 18350 units 17900 units April May The selling price per unit is $15. Determine the total budgeted sales for the entire quarter ending March 31st. O $756,000 O $815,000 O $850,350 O $750,550
Sales budget data for Paige Company are given in BE9.2. Management desires to have an ending finished goods inventory equal to 25% of the next quarter’s expected unit sales. Prepare a production budget by quarters for the first 6 months of 2020.
Ruiz Company provides the following budgeted sales for the next four months. The company wants to end each month with ending finished goods inventory equal to 30% of next month's budgeted unit sales. Finished goods inventory on April 1 is 153 units. Prepare a production budget for the months of April, May, and June. Budgeted sales units. April 510 Budgeted sales units Add: Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Budgeted beginning inventory units Total required units Units to produce May 590 RUIZ COMPANY Production Budget April June 540 590 30% July 630 May 540 30% June 630 30%
How do I prepare the cash budget for the quarter ended March 31, 20X1?
Whispering Winds Company estimates that unit sales will be 10,500 in quarter 1; 12,600 in quarter 2; 13,800 in quarter 3; and 17,800 in quarter 4. Management wants to have an ending finished goods inventory equal to 21% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first six months of 2022. WHISPERING WINDS COMPANY Production Budget For the Six Months Ending June 30, 2022 Quarter 1 2 Total