15esFortune 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 158,000 for the first quarter. Cost of goods sold is $12 per unit. Other expense information for the firstquarter follows.Sales CommissionsRentAdvertisingOffice salariesDepreciationInterestTax rate10% of sales dollarsper quarterper quarterper quarterper quarter$ 49,000$ 583,000$ 282,000$ 109,0001.25% quarterly on $230,000 note payable30%Prepare a budgeted income statement for the first quarter ended March 31. (Round your intermediate and final answers to thenearest whole dollar.)FORTUNE, INCORPORATEDBudgeted Income StatementFor Quarter Ended March 31SalesCost of goods soldGross profitSelling, general and administrative expensesCommon stockRent expenseAdvertising expenseOffice salaries expenseDepreciation expenseInterest expense0

Working Note#1Computation of sales revenue:Sales revenue=Budgeted units per quarter x Price per…

Answered: Fortune Incorporated is preparing its…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Pacific Highway Enterprises prepared the following sales budget for the first six months of 2018: Month January February March Units 5,000 4,000 6,000 8,000 7,000 9,000 April May June Units sell for $46 each. Thirty percent of sales is for cash; the remainder is on account. Cash collections of sales on account are forecasted to be 40 percent in the month of sale, with the remainder collected in the next month. Beginning receivables at January 1 were $87,000. Determine the budgeted cash receipts for: January: $ March: $
Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below: Budgeted sales (all on account) April $ 320,000 May $520,000 June $ 180,000 Total $ 1,020,000 The company estimates 30% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $250,000, and March sales totaled $280,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. Schedule of Expected Cash Collections April February sales March sales $ 12,500 182,000…
Markham Company has completed its sales budget for the first quarter of Year 2. Projected credit sales for the first four months of the year are shown below: January February March April $ 20,000 $ 26,000 $ 35,000 $ 38,000 The company's past records show collection of credit sales as follows: 40% in the month of sale and the balance in the following month. The total cash collection from receivables in March is expected to be: Multiple Choice $29,600. $22,100. $31,850. $35,000.
Leaning Tower of Pizza, Inc. is preparing its master budget for its first quarter of business. It expects to sell 8,000 pizzas at $7 per pizza per month. It expects to collect 90% of the sales in the month of the sale and 10% in the following month. Calculate its accounts receivable balance at the end of its first quarter.
OBUTJX493 Corporation's operational data are below: Sales are budgeted at $ 260,000 for November, $327,000 for December, and $210,000 for January. All sales are credit sales Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible. The cost of goods sold is 65% of sales. The OBUTJX493 company desires to have an ending merchandise inventory at the end of each month equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. December cash disbursements for OBUTJX493's merchandise purchases would be:
Ratchet Manufacturing's August sales budget calls for sales of 5,000 units. Each month's sales are expected to exceed the prior month's results by 6%. The product selling price is $20 per unit. The expected total sales dollars for September's sales budget are: $100,000. $94,000. $106,000. $112,000. $5,300.
Farm Supply Company's budgeted monthly sales are as follows: April $780,000, May $560,000, and June $900,000. Sales are 60% cash and 40% on account. Farm Supply collects all its accounts receivable in the month following the sale. Cost of goods sold is budgeted at 75% of sales and ending inventory is budgeted at 20% of the next month's cost of goods sold. All inventory purchases are paid 28% in the month of purchase and 72% in the following month. What are Farm Supply's budgeted cash collections for the month of May? O $336,000 O $414,000 O $648,000 O $747,000 O None of the above
Komodo Supply Company's monthly sales budget is as follows: April $160,000, May $130,000, and June $120,000. The company's policy is to set selling prices to earn a 30% gross profit on sales revenue and to maintain an ending inventory balance equal to 40% of the next month's cost of goods sold. What is the dollar amount of inventory purchases that is budgeted for the month of May? O $87,800 $88.200 O $89.600 $93,800 O None of the above
ZT Corporation's budgeted monthly sales are $3,000. Forty percent of its customers pay in the first month and take the 2 percent discount. The remaining 60 percent pay in the month following the sale and don't receive a discount. Purchases for next month's sales are constant each month at $1,500. Other payments for wages, rent, and taxes are constant at $700 per month. Construct a single month's cash budget with the information given and determine the total disbursement during a typical month for ZT Corporatio." O $2,200 $3,000 $776 $2,600 O $740
Moore Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $400,000 for April and $480,000 for May. Cost of goods sold is expected to be 65% of sales. The company’s desired ending inventory is 20% of the following month’s cost of goods sold.Compute the required purchases for April. Moore WholesalersPurchases Budget $ : : $
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 150,000 for the first quarter. Cost of goods sold is $14 per unit. Other expense information for the first quarter follows. Sales Commissions Rent Advertising Office salaries Depreciation Interest Tax rate 8% of sales dollars $ 42,000 per quarter $ 562,500 per quarter $225,000 per quarter $ 120,000 1.25% quarterly on $250,000 note payable 30% per quarter 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 Budgeted Income Statement For Quarter Ended March 31 Sales Cost of goods sold Gross profit Selling, general and administrative expenses Sales commissions expense Rent expense Advertising expense Office salaries expense Depreciation expense Interest expense

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