Cymbal E-Motors is a fast-growing start-up firm that manufactures electric motors for bicycles. The following income statement is available for April: Sales revenue (900 units $2,200 per unit) Less Manufacturing costs Variable costs Depreciation (fixed) Marketing and administrative costs Fixed costs (cash) Depreciation (fixed) Total costs Operating profits $1,980,000 64,800 64,000 Required: Prepare a budgeted income statement for May Note: Do not round intermediate calculations. 129,500 72,000 $330,300 $1,649,700 Sales volume is expected to increase by 30 percent in May, but the sales price is expected to fall 5 percent. Variable man facturing costs are expected to increase by 7.5 percent per unit in May. In addition to these cost changes, variable manufacturing costs also will change with sales volume. Marketing and administrative cash costs are expected to increase by 15 percent. All revenues and costs at Cymbal are cash transactions, except for depreciation. Cymbal maintains no inventories. Depreciation is fixed and is forecast to remain unchanged in the next six months.
Cymbal E-Motors is a fast-growing start-up firm that manufactures electric motors for bicycles. The following income statement is available for April: Sales revenue (900 units $2,200 per unit) Less Manufacturing costs Variable costs Depreciation (fixed) Marketing and administrative costs Fixed costs (cash) Depreciation (fixed) Total costs Operating profits $1,980,000 64,800 64,000 Required: Prepare a budgeted income statement for May Note: Do not round intermediate calculations. 129,500 72,000 $330,300 $1,649,700 Sales volume is expected to increase by 30 percent in May, but the sales price is expected to fall 5 percent. Variable man facturing costs are expected to increase by 7.5 percent per unit in May. In addition to these cost changes, variable manufacturing costs also will change with sales volume. Marketing and administrative cash costs are expected to increase by 15 percent. All revenues and costs at Cymbal are cash transactions, except for depreciation. Cymbal maintains no inventories. Depreciation is fixed and is forecast to remain unchanged in the next six months.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required:
Prepare a budgeted income statement for May.
Note: Do not round intermediate calculations.
Cymbal E-Motors
Budgeted Income Statement
For the Month of May
Manufacturing costs:
Total manufacturing costs
Marketing and administrative:
Total marketing and administrative costs
$
$
$
$
0
0
0
0
Transcribed Image Text:Exercise 13-44 (Algo) Prepare Budgeted Financial Statements (LO 13-5)
Cymbal E-Motors is a fast-growing start-up firm that manufactures electric motors for bicycles. The following income statement is
available for April:
Sales revenue (900 units @ $2,200 per unit)
Less
Manufacturing costs.
Variable costs
Depreciation (fixed)
Marketing and administrative costs
Fixed costs (cash)
Depreciation (fixed)
Total costs
Operating profits
$1,980,000
Required:
Prepare a budgeted income statement for May.
Note: Do not round intermediate calculations.
64,800
64,000
Sales volume is expected to increase by 30 percent in May, but the sales price is expected to fall 5 percent. Variable man facturing
costs are expected to increase by 7.5 percent per unit in May. In addition to these cost changes, variable manufacturing costs also will
change with sales volume. Marketing and administrative cash costs are expected to increase by 15 percent.
Cymbal E-Motors
Budgeted Income Statement
For the Month of May
129,500
72,000
$ 330,300
$ 1,649,700
All revenues and costs at Cymbal are cash transactions, except for depreciation. Cymbal maintains no inventories. Depreciation is
fixed and is forecast to remain unchanged in the next six months.
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