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Jan Feb ABC Company Monthly Income Statements Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Jan Feb ABC Company Monthly Income Statements Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

FINANCIAL ACCOUNTING
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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Use the partial income statement generated in Problem 4 along with the following additional information to complete ABC Company’s forecasted income statement in Excel. A. Rent expense is $1,000 per month. However, the landlord has indicated that rent will go up to $1,250 in the fourth quarter. B. Depreciation expense is $2,250 per month and does not change throughout the year. C. Salaries expense is $1,500 per month and is expected to go up by 10% in the second half of the year, when a new compensation plan will be implemented. d. Utilities expense is $5,000 for the entire year and should be allocated to each month based on that month’s percentage of annual sales. E.Interest expense is $500 per month. F. Income tax is 25% of operating income less interest expense.
# ABC Company Monthly Income Statements This table presents the Monthly Income Statements for ABC Company, showcasing financial data spanning from January to December. | **Category** | **Jan** | **Feb** | **Mar** | **Apr** | **May** | **Jun** | **Jul** | **Aug** | **Sep** | **Oct** | **Nov** | **Dec** | **Total** | |-------------------------------|----------|----------|----------|----------|----------|----------|----------|----------|----------|----------|----------|----------|-------------| | **Gross Sales** | $41,800 | $43,890 | $51,700 | $61,600 | $66,000 | $78,100 | $58,300 | $58,300 | $50,600 | $40,700 | $42,900 | $34,100 | $627,990 | | **% of Annual Sales** | 7.0% | 7.3% | 8.2% | 9.7% | 10.4% | 12.3% | 9.2% | 9.2% | 8.0% | 6.4% | 6.8% | 5.4% | 100.0% | | **Sales Returns & Allowances**| $418 | $439 | $517 | $616 | $660 | $781 | $583 | $583 | $506 | $407 | $429 | $341 | $6,280 | | **Net Sales** | 41,382 | 43,451 | 51,183 | 60,984 | 65,340 | 77,319 | 57,717 | 57,717 | 50,094 | 40,293 | 42,471 | 33,759 | 621,710 | | **Cost of Goods Sold** | 24,829 | 26,071 | 30,710 | 36,590 | 39,204 |
Transcribed Image Text:# ABC Company Monthly Income Statements This table presents the Monthly Income Statements for ABC Company, showcasing financial data spanning from January to December. | **Category** | **Jan** | **Feb** | **Mar** | **Apr** | **May** | **Jun** | **Jul** | **Aug** | **Sep** | **Oct** | **Nov** | **Dec** | **Total** | |-------------------------------|----------|----------|----------|----------|----------|----------|----------|----------|----------|----------|----------|----------|-------------| | **Gross Sales** | $41,800 | $43,890 | $51,700 | $61,600 | $66,000 | $78,100 | $58,300 | $58,300 | $50,600 | $40,700 | $42,900 | $34,100 | $627,990 | | **% of Annual Sales** | 7.0% | 7.3% | 8.2% | 9.7% | 10.4% | 12.3% | 9.2% | 9.2% | 8.0% | 6.4% | 6.8% | 5.4% | 100.0% | | **Sales Returns & Allowances**| $418 | $439 | $517 | $616 | $660 | $781 | $583 | $583 | $506 | $407 | $429 | $341 | $6,280 | | **Net Sales** | 41,382 | 43,451 | 51,183 | 60,984 | 65,340 | 77,319 | 57,717 | 57,717 | 50,094 | 40,293 | 42,471 | 33,759 | 621,710 | | **Cost of Goods Sold** | 24,829 | 26,071 | 30,710 | 36,590 | 39,204 |
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