Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: ### Exercise 8-8 (Static) Budgeted Income Statement [LO8-9]Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process:**Summary Data:**- **Budgeted unit sales:** 460 units- **Selling price per unit:** $1,950- **Cost per unit:** $1,575- **Variable selling and administrative expense (per unit):** $75- **Fixed selling and administrative expense (per year):** $105,000- **Interest expense for the year:** $14,000**Required:**Prepare the company's budgeted income statement for the year.#### Gig Harbor Boating#### Budgeted Income Statement| **Category** | **Amount** || ---------------------------------------- | ------------------ || Sales | || Less: Cost of Goods Sold | || Gross Margin | || Less: Variable Selling & Admin Expenses | || Contribution Margin | || Less: Fixed Selling & Admin Expenses | || Net Operating Income | || Less: Interest Expense | || Net Income | |*Note:* The blue table in the image is a template for the budgeted income statement that requires the values to be calculated and filled in appropriately. The categories listed in the rows represent the various financial items that will be included in the income statement calculation. ### Explanation of Categories:1. **Sales**: This refers to the total revenue generated by selling the catamarans.2. **Cost of Goods Sold (COGS)**: This is the total cost of producing the units sold.3. **Gross Margin**: Calculated as Sales minus COGS.4. **Variable Selling & Administrative Expenses**: These are the costs that vary directly with the number of units sold.5. **Contribution Margin**: Gross Margin minus Variable Selling & Administrative Expenses.6. **Fixed Selling & Administrative Expenses**: These are the fixed costs that do not vary with the level of production or sales.7. **Net Operating Income**: Contribution Margin minus Fixed Selling & Administrative Expenses.8. **Interest Expense**: The cost incurred from borrowing funds.9. **Net Income**: Net Operating Income minus Interest Expense.

Sig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following ummary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year Required: Prepare the company's budgeted income statement for the year. 460 $ 1,950 $ 1,575 $ 75 $ 105,000 $ 14,000

Sig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following ummary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year Required: Prepare the company's budgeted income statement for the year. 460 $ 1,950 $ 1,575 $ 75 $ 105,000 $ 14,000

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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Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Budgeted diving-hours (9) Revenue ($440.009) Expenses: Wages and salaries ($11,700 + $120.009) Supplies ($3.00q) Equipment rental ($2,500 + $22.009) Insurance ($4,000) Miscellaneous ($540+ $1.44g) Total expense Net operating income During May, the company's actual activity was 290 diving-hours. Required: Prepare a flexible budget for May. Note: Round your answers to the nearest whole number. Revenue Expenses: Puget Sound Divers Planning Budget For the Month Ended May 31 Puget Sound Divers Flexible Budget Month Ended May 31 Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income 300 $ 132,000 47,700 900 9,100 4,000 972 62,672 $ 69,328
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Puget Sound Divers provides diving services, such as underwater ship repairs, to its clients. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($460.00q) Expenses: Wages and salaries ($11,200 +$126.00q) Supplies ($5.00q) Equipment rental ($2,400 + $20.00q) Insurance ($4,000) Miscellaneous ($540 + $1.50q) Total expenses Net operating income. 250 $ 115,000 42,700 1,250 7,400 4,000 915 56,265 $ 58,735 During May, the company's actual activity was 240 diving-hours. Required: Prepare a flexible budget for May. Note: Round your answers to the nearest whole number.
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year 680 $ 2,060 $ 1,680 $50 $ 200,000 $22,000 Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement < Prev 9 of 9 Next ........
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Budgeted diving-hours (9) Revenue ($450.009) Expenses: Wages and salaries ($11,700 + $122.009) Supplies ($5.009) Equipment rental ($2,400 + $24.009) Insurance ($3,800) Puget Sound Divers Planning Budget For the Month Ended May 31 Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Miscellaneous ($540+ $1.469) Total expense Net operating income During May, the company's actual activity was 390 diving-hours. Wages and salaries Supplies Equipment rental Insurance. Miscellaneous Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) Total expense Net operating income. 400 $ 180,000 $ 60,500 2,000 12,000 0 0 3,800 1,124 79,424 $ 100,576
Puget Sound Divers provides diving services, such as underwater ship repairs, to its clients. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (g) Revenue (1440.000) Expenses: Wages and salaries ($11,300 $130.00g) Supplies ($5.00g) Revenue Expenses Equipment rental ($2,500+ $25.00g) Insurance (14,000) Miscellaneous ($510 $1.500) Total expenses Net operating income During May, the company's actual activity was 190 diving-hours. Required: Prepare a flexible budget for May Note: Round your answers to the nearest whole number. Puget Sound Divers Flexible Budget For the Month Ended May 31 Wages and salaries Supplies Equipment rental insurance Total expenses Net operating income 200 $ 88,000 0 37,300 1,000 7,500 4,000 810 50,610 $ 37,390
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement 600 $ 2,020 $ 1,670 $ 55 $ 107,000 $ 18,000
Please help me
Please help me
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($460.00q) Expenses: Wages and salaries ($11,700 + $122.009) Supplies ($4.009) Equipment rental ($2,500 + $23.00q) Insurance ($4,100) Miscellaneous ($510 + $1.44q) Total expense Net operating income 400 $ 184,000 60,500 1,600 11,700 4,100 1,086 78,986 $ 105,014 During May, the company's actual activity was 390 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Actual diving-hours Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense 0 Net operating income $ 0
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