Fortune Incorporated is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (In units) are budgeted at 154,000 for the first quarter. Cost of goods sold is $12 per unit. Other expense Information for the first quarter follows. Sales Commissions Rent Advertising Office salaries Depreciation Interest Tax rate 9% of sales dollars per quarter per quarter per quarter per quarter quarterly on $290,000 note payable $ 42,000 $ 536,000 $ 290,000 $ 101,000 1.75% 30% Prepare a budgeted Income statement for the first quarter ended March 31. Note: Round your Intermediate and final answers to the nearest whole dollar.
Fortune Incorporated is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (In units) are budgeted at 154,000 for the first quarter. Cost of goods sold is $12 per unit. Other expense Information for the first quarter follows. Sales Commissions Rent Advertising Office salaries Depreciation Interest Tax rate 9% of sales dollars per quarter per quarter per quarter per quarter quarterly on $290,000 note payable $ 42,000 $ 536,000 $ 290,000 $ 101,000 1.75% 30% Prepare a budgeted Income statement for the first quarter ended March 31. Note: Round your Intermediate and final answers to the nearest whole dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Fortune Incorporated is preparing its master budget for the first quarter. The company sells a single product at a
price of $25 per unit. Sales (In units) are budgeted at 154,000 for the first quarter. Cost of goods sold is $12 per
unit. Other expense Information for the first quarter follows.
Sales Commissions
Rent
Advertising
Office salaries
Depreciation
Interest
Tax rate
Sales
Cost of goods sold
Gross profit
9% of sales dollars.
per quarter
per quarter
per quarter
per quarter
quarterly on $290,000 note payable
$ 42,000
$ 536,000
$ 290,000
$ 101,000
Prepare a budgeted Income statement for the first quarter ended March 31.
Note: Round your Intermediate and final answers to the nearest whole dollar.
Advertising expense
Office salaries expense
Depreciation expense
Interest expense
1.75%
30%
FORTUNE, INCORPORATED
Budgeted Income Statement
For Quarter Ended March 31
Selling, general and administrative expenses
Sales commissions expense
Rent expense
$
10
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