The data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimated Sales $600,000 Sales 567,930 Purchases 294,830 Ending Inventory* 10% Administrative Salaries 50,320 Marketing Expense** 5% Sales Commissions 2% Rent Expense 7,500 Depreciation Expense 1,000 Utilities 2,500 Taxes*** 15% *of next month's sales **of estimated sales ***of income before taxes Sales are expected to increase each month by 10%. Prepare a budgeted income statement. Round your answers to the nearest dollar.
The data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimated Sales $600,000 Sales 567,930 Purchases 294,830 Ending Inventory* 10% Administrative Salaries 50,320 Marketing Expense** 5% Sales Commissions 2% Rent Expense 7,500 Depreciation Expense 1,000 Utilities 2,500 Taxes*** 15% *of next month's sales **of estimated sales ***of income before taxes Sales are expected to increase each month by 10%. Prepare a budgeted income statement. Round your answers to the nearest dollar.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 6E: Roman Inc. has the following totals from its operating budgets: Prepare a budgeted income statement...
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The data shown were obtained from the financial records of Italian Exports, Inc., for March:
Estimated Sales | $600,000 |
Sales | 567,930 |
Purchases | 294,830 |
Ending Inventory* | 10% |
Administrative Salaries | 50,320 |
Marketing Expense** | 5% |
Sales Commissions | 2% |
Rent Expense | 7,500 |
1,000 | |
Utilities | 2,500 |
Taxes*** | 15% |
*of next month's sales
**of estimated sales
***of income before taxes
Sales are expected to increase each month by 10%.
Prepare a
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