Foodie's Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2030. 1. Sales: 1. Expected units sales are: 10,000 bags for quarter 1 and quarter 2's sale is going to increase by 10% of the quarter 1's sale. 2. Selling price is $50 per bog. 2. Cost of each bag is $20. 3. Desired inventory levels are: 1. January 1 (Beginning of Quarter 11, 2,000 bags 2. April 1 (Beginning of Quarter 21, 2,500 bags 3. July 1 (Beginning of Quarter 31, 3.000 bags 4. HINT: Ending inventory in one period becomes beginning inventory in the following period. In other words, your beginning inventory for one period was ending inventory for the previous period. 4. Selling and administrative expenses are expected to be 10% of sales revenue plus $30.000 per quarter. 5. Interest expense is $100,000 and income taxes are expected to be 25% of income before income taxes. Prepare the budgeted multiple-step income statement for the first 6 months (first two quarters) When typing your responses for amounts, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign Budgeted Income Statement Foodle's Supply Company Income Statement For the Six Months Ending June 30, 2030 $ 21000 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Income from Operations Interest Expense Income before Income Tax $ 3000 24000 $2000
Foodie's Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2030. 1. Sales: 1. Expected units sales are: 10,000 bags for quarter 1 and quarter 2's sale is going to increase by 10% of the quarter 1's sale. 2. Selling price is $50 per bog. 2. Cost of each bag is $20. 3. Desired inventory levels are: 1. January 1 (Beginning of Quarter 11, 2,000 bags 2. April 1 (Beginning of Quarter 21, 2,500 bags 3. July 1 (Beginning of Quarter 31, 3.000 bags 4. HINT: Ending inventory in one period becomes beginning inventory in the following period. In other words, your beginning inventory for one period was ending inventory for the previous period. 4. Selling and administrative expenses are expected to be 10% of sales revenue plus $30.000 per quarter. 5. Interest expense is $100,000 and income taxes are expected to be 25% of income before income taxes. Prepare the budgeted multiple-step income statement for the first 6 months (first two quarters) When typing your responses for amounts, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign Budgeted Income Statement Foodle's Supply Company Income Statement For the Six Months Ending June 30, 2030 $ 21000 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Income from Operations Interest Expense Income before Income Tax $ 3000 24000 $2000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Don't give answer in image format
Transcribed Image Text:Foodie's Supply Company manufactures and sells a pesticide called Snare. The
following data are available for preparing budgets for Snare for the first 2 quarters of
2030.
1. Sales:
1. Expected units sales are: 10,000 bags for quarter 1 and quarter 2's sale is going to
increase by 10% of the quarter 1's sale.
2. Selling price is $50 per bog.
2. Cost of each bag is $20.
3. Desired inventory levels are:
1. January 1 (Beginning of Quarter 11, 2,000 bags
2. April 1 (Beginning of Quarter 21, 2,500 bags
3. July 1 (Beginning of Quarter 31, 3.000 bags
4. HINT: Ending inventory in one period becomes beginning inventory in the following period. In
other words, your beginning inventory for one period was ending inventory for the previous
period.
4. Selling and administrative expenses are expected to be 10% of sales revenue plus $30.000 per
quarter.
5. Interest expense is $100,000 and income taxes are expected to be 25% of income before
income taxes.
Prepare the budgeted multiple-step income statement for the first 6 months (first
two quarters)
When typing your responses for amounts, do NOT include a dollar sign. For example, if
your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar
sign
Budgeted Income Statement
Foodle's Supply Company
Income Statement
For the Six Months Ending June 30, 2030
$ 21000
Sales Revenue
Cost of Goods Sold
Gross Profit
Selling and Administrative Expenses
Inicome from Operations
Interest Expense
Income before Income Tax
Income Tax Expense
Net Income /(Loss)
$ 3000
$ 24000
$ 2000
$
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education