• Utilities: $1,300. • Insurance: $240. • Other expenses: $340. Required: 1. Compute the budgeted cost of purchases for each month in the second quarter. 2. Complete the budgeted income statement for each month in the second quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the budgeted income statement for each month in the second quarter. CITRUS GIRL COMPANY Budgeted Income Statement For the Month Ending April 30 Budgeted Gross Margin Budgeted Net Operating Income < Required 1 May 31 Required 2 June 30
• Utilities: $1,300. • Insurance: $240. • Other expenses: $340. Required: 1. Compute the budgeted cost of purchases for each month in the second quarter. 2. Complete the budgeted income statement for each month in the second quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the budgeted income statement for each month in the second quarter. CITRUS GIRL COMPANY Budgeted Income Statement For the Month Ending April 30 Budgeted Gross Margin Budgeted Net Operating Income < Required 1 May 31 Required 2 June 30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the
United States. To keep costs down, CGC maintains a warehouse but no showroom or retail sales outlets. CGC has the following
Information for the second quarter of the year.
1. Expected monthly sales for April, May, June, and July are $260,000, $230,000, $350,000, and $130,000, respectively.
2. Cost of goods sold is 30 percent of expected sales.
3. CGC's desired ending inventory is 40 percent of the following month's cost of goods sold.
4. Monthly operating expenses are estimated to be:
Salaries: $34,000.
Delivery expense: 8 percent of monthly sales.
Rent expense on the warehouse: $6,500.
Utilities: $1,300.
Insurance: $240.
• Other expenses: $340.
Required:
1. Compute the budgeted cost of purchases for each month in the second quarter.
2. Complete the budgeted income statement for each month in the second quarter
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the budgeted cost of purchases for each month in the second quarter.
April
May
Total Cost of Budgeted Purchases
Required 1
June
Required 2 >
Transcribed Image Text:• Utilities: $1,300.
• Insurance: $240.
• Other expenses: $340.
Required:
1. Compute the budgeted cost of purchases for each month in the second quarter.
2. Complete the budgeted income statement for each month in the second quarter.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Complete the budgeted income statement for each month in the second quarter.
CITRUS GIRL COMPANY
Budgeted Income Statement
For the Month Ending
Budgeted Gross Margin
Budgeted Net Operating Income
< Required 1
April 30
May 31
Required 2
June 30
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