Given the following information, prepare an annual income statement budget for the Great Student Corporation as of 12/31/2018. 1. Sales: 1000 Units; Price $1,000 per Unit 2. Cost of Goods Sold (COGS): 60% of Sales 3. Wages: 15 Employees; Average Cost per Employee $15000 4. SGA Expenses: 12% of Sales 5. Depreciation: Straight Line $4000 per year 6. Interest Expense: 1% of Sales What was the company's budgeted gross profit? O A. $403,000 O B. $400,000 OC.$41,000 O D. $359,000

Given the following information, prepare an annual income statement budget for the Great Student Corporation as of 12/31/2018. 1. Sales: 1000 Units; Price $1,000 per Unit 2. Cost of Goods Sold (COGS): 60% of Sales 3. Wages: 15 Employees; Average Cost per Employee $15000 4. SGA Expenses: 12% of Sales 5. Depreciation: Straight Line $4000 per year 6. Interest Expense: 1% of Sales What was the company's budgeted gross profit? O A. $403,000 O B. $400,000 OC.$41,000 O D. $359,000

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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Gilmore Corp. is preparing its operations budget for December 2021. The data from the previous year is presented as follows: Gilmore Corporation Income Statement For the year ended December 2020 Sales (150,000 units) - 3,750,000.00 Cost of Goods Sold - 1,912,500.00 Gross Profit - 1,837,500.00 Operating expenses (including rent and depreciation of 100,000 and 150,000) - 550,000.00 Net Income - 1,287,500.00 Gilmore Corp is looking to adjust the budget for the coming year as follows: 1. Because of the on-going pandemic, Gilmore is forecasting a 10% decrease in the sales every quarter starting the first quarter. 2. Sales discounts and allowances are estimated to be 1.5% every quarter. 3. Gilmore is planning to maintain an ending inventory of 7,500 for the first two quarters, and 6,500 to the other two quarters. The planned ending inventory for the first two quarters is 1,000 less than the ending inventory from the previous year. 4. Gilmore's outputs contain 3 units of raw materials costing…
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Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. April May June Credit sales $ 689,000 $ 598,000 $ 751,000 Credit purchases 302,000 282,000 338,000 Cash disbursements Wages, taxes, and expenses 137,000 129,000 179,000 Interest 15,600 15,600 15,600 Equipment purchases 53,500 6,600 248,000 The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000. Using this information, complete the following cash budget: (Do not round intermediate calculations and round your answers to the nearest whole number,…
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