How do I solve for the prompt? Santana Rey expects second quarter 2022 net income of Business Solutions's line of computer furniture to be the same as the firstquarter's net income (reported below) without any changes in strategy. Sales were 120 desk units (sales price of $1,250) and 60 chairs(sales price of $500).tSalestCost of goods sold*Gross profitSelling, general, and administrative expensesSales commissions (10%)BUSINESS SOLUTIONS-Computer Furniture SegmentSegment Income Statement*For Quarter Ended March 31, 2022Advertising expensesGeneral and administrative expensesNet incomeLMay eller 40Reflects activity only related to the computer furniture segment.Sales: (120 desks x $1,250) + (60 chairs x $500) = $180,000.‡Cost of goods sold: (120 desks × $750) + (60 chairs × $250) = $105,000.Required 1 Required 2SHE DHEP$ 18,0009,00018,000shus came volarSantana believes that sales will total 156 desks and 105 chairs for the next quarter if selling prices are reduced to $1,150 for desks and$450 for chairs and advertising expenses are increased to $12,000 for the quarter. Product costs per unit and amounts of all otherexpenses will not change.Complete this question by entering your answers in the tabs below.Required:1. Prepare a budgeted income statement for the computer furniture segment for the quarter ended June 30, 2022, that shows theresults from implementing the proposed changes.2. Do the proposed changes increase or decrease budgeted net income for the quarter?$ 180,000105,00075,000BUSINESS SOLUTIONS-COMPUTER FURNITURE SEGMENT45,000$ 30,000Prepare a budgeted income statement for the computer furniture segment for the quarter ended June 30, 2022, that showsthe results from implementing the proposed changes.< Prev3 of 411Next > Cost of goods sold*Gross profittSelling, general, and administrative expensesSales commissions (10%)Advertising expensesGeneral and administrative expensesNet incomeReflects activity only related to the computer furniture segment.Sales: (120 desks × $1,250) + (60 chairs x $500) = $180,000.‡Cost of goods sold: (120 desks x $750) + (60 chairs x $250) = $105,000.$ 18,0009,00018,000Santana believes that sales will total 156 desks and 105 chairs for the next quarter if selling prices are reduced to $1,150 for desks and$450 for chairs and advertising expenses are increased to $12,000 for the quarter. Product costs per unit and amounts of all otherexpenses will not change.Complete this question by entering your answers in the tabs below.Required 1 Required 2105,00075,000Required:1. Prepare a budgeted income statement for the computer furniture segment for the quarter ended June 30, 2022, that shows theresults from implementing the proposed changes.2. Do the proposed changes increase or decrease budgeted net income for the quarter?45,000$ 30,000< Required 1Do the proposed changes increase or decrease budgeted net income for the quarter?Do the proposed changes increase or decrease budgeted net income for the quarter?Required 2 >Nort

In accounting, budgeting refers to the process of creating a financial plan for a specific period,…

Santana Rey expects second quarter 2022 net income of Business Solutions's line of computer furniture to be the same as the first quarter's net income (reported below) without any changes in strategy. Sales were 120 desk units (sales price of $1,250) and 60 chairs (sales price of $500). BUSINESS SOLUTIONS-Computer Furniture Segment Segment Income Statement* For Quarter Ended March 31, 2022 Sales Cost of goods sold* Gross profit Selling, general, and administrative expenses Sales commissions (10%) Advertising expenses General and administrative expenses Net income $ 18,000 9,000 18,000 Reflects activity only related to the computer furniture segment. † Sales: (120 desks x $1,250) + (60 chairs x $500) = $180,000. Cost of goods sold: (120 desks * $750) + (60 chairs × $250) = $105,000. $ 180,000 105,000 75,000 45,000 $ 30,000 Santana believes that sales will total 156 desks and 105 chairs for the next quarter if selling prices are reduced to $1,150 for desks and $450 for chairs and advertising expenses are increased to $12,000 for the quarter. Product costs per unit and amounts of all other expenses will not change. Required: 1. Prepare a budgeted income statement for the computer furniture segment for the quarter ended June 30, 2022, that shows the results from implementing the proposed changes. 2. Do the proposed changes increase or decrease budgeted net income for the quarter?

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 57BE