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Prepare the budgeted income statement for the year ending October 31, 2021 using the incremental budgeting approach.

Prepare the budgeted income statement for the year ending October 31, 2021 using the incremental budgeting approach.

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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Tale me to the text The fallawing is Alpha Hatel's incarne statement for the year ended Octaber 31, 2020. Pevenues will increase by 1.5% Marketing costs will decrease by 3% Maragement salaries will increase by 4 ? Variable woges will remain carsistent as a percentage of revenue. Ltilities will incresse by 6% Administrative costs and rent will remain the same Do not enter dollar signs pr cammas in the input baves. Prepare the budgeted income statement for the year ending October 31, 2021 using the incremental budgeting approach. Take me to the tot The following is Alpha Hotel's income statement for the year ended October 31, 2020 Alpha Hotel Income Statement For the Year Ended October 21, 2020 $410,000 Expenses Administrative Costs $20,000 $15,000 $288.000 $82,000 $174,000 $25,000 Marking Variable Weres Management Salar Pent Utilities Net Income Apha Hotel is a limited service hotel with 10 rooms and no food and beverage operations Management does not intend to spend a lot of time and money on budgeting. The manager has determined the 2021 budgeted income statement should simply effect the following predicted changes from the 2020 income statement Revenues will increase by 1.5% • Marketing costs will clecrease by 3% • Management salaries will increase by 4% • Variable wages will remain consistent as a percentage of revenue Utilities will inby • Administrative costs and rent will remain the same $604,000 + $200,000 Prepare the budgeted income statement for the year ending October 31, 2021 using the incremental budgeting approach Alpha Hotel Budgeted Income Statement For the Year Ended October 31, 2021 $622150 Revenue Expenses Administrative Costs 20000 Variable We Fent Management Salari 580 Uits Total Expenses 14550 1174000 1
Transcribed Image Text:Tale me to the text The fallawing is Alpha Hatel's incarne statement for the year ended Octaber 31, 2020. Pevenues will increase by 1.5% Marketing costs will decrease by 3% Maragement salaries will increase by 4 ? Variable woges will remain carsistent as a percentage of revenue. Ltilities will incresse by 6% Administrative costs and rent will remain the same Do not enter dollar signs pr cammas in the input baves. Prepare the budgeted income statement for the year ending October 31, 2021 using the incremental budgeting approach. Take me to the tot The following is Alpha Hotel's income statement for the year ended October 31, 2020 Alpha Hotel Income Statement For the Year Ended October 21, 2020 $410,000 Expenses Administrative Costs $20,000 $15,000 $288.000 $82,000 $174,000 $25,000 Marking Variable Weres Management Salar Pent Utilities Net Income Apha Hotel is a limited service hotel with 10 rooms and no food and beverage operations Management does not intend to spend a lot of time and money on budgeting. The manager has determined the 2021 budgeted income statement should simply effect the following predicted changes from the 2020 income statement Revenues will increase by 1.5% • Marketing costs will clecrease by 3% • Management salaries will increase by 4% • Variable wages will remain consistent as a percentage of revenue Utilities will inby • Administrative costs and rent will remain the same $604,000 + $200,000 Prepare the budgeted income statement for the year ending October 31, 2021 using the incremental budgeting approach Alpha Hotel Budgeted Income Statement For the Year Ended October 31, 2021 $622150 Revenue Expenses Administrative Costs 20000 Variable We Fent Management Salari 580 Uits Total Expenses 14550 1174000 1
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