Budgeting Josiah is a golf enthusiast. He teaches and plays the game of golf. A few years back, he was able to get in on an excellent business opportunity. He is a part of Improve Your Golf, Inc. They sell two different products that help people improve their golf game. The company needs your help in budgeting. Here is some information available for the month of April Estimated sales Product 1 sales for this month are estimated to be 180,000 units at $12.00 each. Product 2 sales for this month are estimated to be 250,000 units at $6.00 each. Estimated Costs Product 1 estimated costs are $6 per unit. Product 2 estimated costs are $3.00 per unit Desired inventories Product 1- the beginning inventory is 11,000, and the ending inventory is 8,000. Product 2 –the beginning inventory is 5,000, and the ending inventory is 6,000. Other information you will need: The company has their bank accounts at Sun Bank. The beginning cash balance is $500,000 on the first of the month. Sales are on credit and are collected 80% in the current period and the balance in the next period. March sales were $3,200,000, and May sales are estimated to be 3,400,000. Bad debts average 2% of sales. The company purchases most of the golf merchandise that it distributes. Purchases of merchandise are paid 70% in the month of purchase and 30% in the following month. Purchases totaled 1,900,000 in March and are estimated to be 2,000,000 in May. The company has several employees. Employee wages are paid in the current month. Employee expenses for April were $515,000. Overhead expenses are paid in the next month. The accounts payable amount for these expenses from March is $90,000, and for May will be $100,000. April’s overhead expenses are $90,000. Selling and administrative expenses are paid monthly and total $780,000, including $50,000 of depreciation. All unit costs for April are the same as they were in March. Required- Prepare the following in good format: Budgeted income statement

Budgeting Josiah is a golf enthusiast. He teaches and plays the game of golf. A few years back, he was able to get in on an excellent business opportunity. He is a part of Improve Your Golf, Inc. They sell two different products that help people improve their golf game. The company needs your help in budgeting. Here is some information available for the month of April Estimated sales Product 1 sales for this month are estimated to be 180,000 units at $12.00 each. Product 2 sales for this month are estimated to be 250,000 units at $6.00 each. Estimated Costs Product 1 estimated costs are $6 per unit. Product 2 estimated costs are $3.00 per unit Desired inventories Product 1- the beginning inventory is 11,000, and the ending inventory is 8,000. Product 2 –the beginning inventory is 5,000, and the ending inventory is 6,000. Other information you will need: The company has their bank accounts at Sun Bank. The beginning cash balance is $500,000 on the first of the month. Sales are on credit and are collected 80% in the current period and the balance in the next period. March sales were $3,200,000, and May sales are estimated to be 3,400,000. Bad debts average 2% of sales. The company purchases most of the golf merchandise that it distributes. Purchases of merchandise are paid 70% in the month of purchase and 30% in the following month. Purchases totaled 1,900,000 in March and are estimated to be 2,000,000 in May. The company has several employees. Employee wages are paid in the current month. Employee expenses for April were $515,000. Overhead expenses are paid in the next month. The accounts payable amount for these expenses from March is $90,000, and for May will be $100,000. April’s overhead expenses are $90,000. Selling and administrative expenses are paid monthly and total $780,000, including $50,000 of depreciation. All unit costs for April are the same as they were in March. Required- Prepare the following in good format: Budgeted income statement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Budgeting

Josiah is a golf enthusiast. He teaches and plays the game of golf. A few years back, he was able to get in on an excellent business opportunity. He is a part of Improve Your Golf, Inc. They sell two different products that help people improve their golf game. The company needs your help in budgeting.

Here is some information available for the month of April

Estimated sales

Product 1 sales for this month are estimated to be 180,000 units at $12.00 each. Product 2 sales for this month are estimated to be 250,000 units at $6.00 each.

Estimated Costs

Product 1 estimated costs are $6 per unit. Product 2 estimated costs are $3.00 per unit

Desired inventories

Product 1- the beginning inventory is 11,000, and the ending inventory is 8,000. Product 2 –the beginning inventory is 5,000, and the ending inventory is 6,000.

Other information you will need:

The company has their bank accounts at Sun Bank. The beginning cash balance is $500,000 on the first of the month. Sales are on credit and are collected 80% in the current period and the balance in the next period. March sales were $3,200,000, and May sales are estimated to be 3,400,000. Bad debts average 2% of sales. The company purchases most of the golf merchandise that it distributes. Purchases of merchandise are paid 70% in the month of purchase and 30% in the following month. Purchases totaled 1,900,000 in March and are estimated to be 2,000,000 in May. The company has several employees. Employee wages are paid in the current month. Employee expenses for April were $515,000. Overhead expenses are paid in the next month. The accounts payable amount for these expenses from March is $90,000, and for May will be $100,000. April’s overhead expenses are $90,000. Selling and administrative expenses are paid monthly and total $780,000, including $50,000 of depreciation.

All unit costs for April are the same as they were in March.

Required- Prepare the following in good format:

Budgeted income statement

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