Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: . . . . . . . Sales are budgeted at $380,000 for November, $390,000 for December. The cost of goods sold is 65% of sales. Salary expense is $10,000 of November and 12,000 for December. Monthly depreciation is $20,000. Advertising expense is $3,500 for November and 2,100 for December Maintenance expense is $4,400 for November and $0 for December Monthly rent expense is $15,500 Ignore taxes. Prepare a Budgeted Income Statement for November and December. Also, perform vertical analysis for both months.
Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: . . . . . . . Sales are budgeted at $380,000 for November, $390,000 for December. The cost of goods sold is 65% of sales. Salary expense is $10,000 of November and 12,000 for December. Monthly depreciation is $20,000. Advertising expense is $3,500 for November and 2,100 for December Maintenance expense is $4,400 for November and $0 for December Monthly rent expense is $15,500 Ignore taxes. Prepare a Budgeted Income Statement for November and December. Also, perform vertical analysis for both months.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized
town in Montana. Data regarding the store's operations follow:
.
.
.
.
.
.
Sales are budgeted at $380,000 for November, $390,000 for December.
The cost of goods sold is 65% of sales.
Salary expense is $10,000 of November and 12,000 for December.
Monthly depreciation is $20,000.
Advertising expense is $3,500 for November and 2,100 for December
Maintenance expense is $4,400 for November and $0 for December
Monthly rent expense is $15,500
Ignore taxes.
Prepare a Budgeted Income Statement for November and December. Also, perform vertical analysis
for both months.
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