Gibson Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because economic conditions vary in different regions of the country. The growth expectations per quarter are 6 percent for Cummings Division, 4 percent for Springfield Division, and 8 percent for Douglas Division. Required a. Complete the sales budget by filling in the missing amounts. b. Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements. Complete this question by entering your answers in the tabs below. Required A Required B Complete the sales budget by filling in the missing amounts. (Round your final answers to the nearest whole dollar amount.) Second Fourth Quarter Division First Quarter Third Quarter Quarter Cummings Division 2$ 150,000 Springfield Division 310,000 Douglas Division 220,000 < Required A Required B >

Gibson Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because economic conditions vary in different regions of the country. The growth expectations per quarter are 6 percent for Cummings Division, 4 percent for Springfield Division, and 8 percent for Douglas Division. Required a. Complete the sales budget by filling in the missing amounts. b. Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements. Complete this question by entering your answers in the tabs below. Required A Required B Complete the sales budget by filling in the missing amounts. (Round your final answers to the nearest whole dollar amount.) Second Fourth Quarter Division First Quarter Third Quarter Quarter Cummings Division 2$ 150,000 Springfield Division 310,000 Douglas Division 220,000 < Required A Required B >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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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Gibson Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because
economic conditions vary in different regions of the country. The growth expectations per quarter are 6 percent for Cummings
Division, 4 percent for Springfield Division, and 8 percent for Douglas Division.
Required
a. Complete the sales budget by filling in the missing amounts.
b. Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Complete the sales budget by filling in the missing amounts. (Round your final answers to the nearest whole dollar amount.)
Second
Fourth
Quarter
Division
First Quarter
Third Quarter
Quarter
Cummings Division
Springfield Division
Douglas Division
2$
150,000
310,000
220,000
<Required A
Required B
>

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