Quantity of Ice Cream Cones Sold 500 500 600 750 900 1,500 1,500 6,250Average Price /Cone 5.005.005.005.005.005.005.00 Estimated Sales Revenue 2,500 2,500 3,000 3,750 4,500 7,500 7,500 31,250 JanuaryFebruaryMarchAprilMayJuneJulyTotalCash Sales 2,250.00 2,250.00 2,700.00 3,375.00 4,050.00 6,750.00 6,750.00 28,125.00Sales on Account 250.00 250.00 300.00 375.00 450.00 750.00 750.00 3,125.00Total Sales 2,500.00 2,500.00 3,000.00 3,750.00 4,500.00 7,500.00 7,500.00 31,250.00 Cash Sales 2,250.00 2,250.00 2,700.00 3,375.00 4,050.00 6,750.00 6,750.00 28,125.00Sales on Account: January Sales 250.00 250.00February Sales 250.00 250.00March Sales 300.00 300.00April Sales 375.00 375.00May Sales 450.00 450.00June Sales 750.00 750.00Total Cash Collections 2,250.00 2,500.00 2,950.00 3,675.00 4,425.00 7,200.00 7,500.00 30,500.00 January February March April May June July Total Wages Expense 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00 7,700.00Inventory(COGS) 1,000.00 1,000.00 1,200.00 1,500.00 1,800.00 3,000.00 3,000.00 12,500.00Equipment 4,500.00 4,500.00Rent expense 600.00 600.00 600.00 600.00 600.00 600.00 600.00 4,200.00Total cash disbursements 7,200.00 2,700.00 2,900.00 3,200.00 3,500.00 4,700.00 4,700.00 28,900.00 January February March April May June July Beginning Cash Balance 10,000.00 5,050.00 2,600.00 - (2,825.00) (5,875.00) (9,825.00) Add: Cash Collections 2,250.00 250.00 300.00 375.00 450.00 750.00 750.00 Less: Cash Disbursements (7,200.00) (2,700.00) (2,900.00) (3,200.00) (3,500.00) (4,700.00) (4,700.00) Ending Cash Balance 5,050.00 2,600.00 - (2,825.00) (5,875.00) (9,825.00) (13,775.00) Where do I get this number?JanuaryFebruaryMarchAprilMayJuneJuly Sales RevenueSales budget Less: Cost of Goods SoldCash disbursements Gross ProfitCalculate: Sales - COGS - - - - - - - Operating Expenses: Wages ExpenseCash disbursements Rent ExpenseCash disbursements Depreciation expenseCalculate: Cost of Equipment÷5 years/12 months Total ExpensesSubtotal: add wages through depreciation - - - - - - - Net IncomeCalculate: Gross Profit - Total expenses - - - - - - -

Net Income is defined as the final income remaining with the business entity after deducting all the…

Answered: Where do I get this number?

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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Quantity of Ice Cream Cones Sold		500	500	600	750	900	1,500	1,500	6,250
Average Price /Cone		5.00	5.00	5.00	5.00	5.00	5.00	5.00
Estimated Sales Revenue		2,500	2,500	3,000	3,750	4,500	7,500	7,500	31,250


		January	February	March	April	May	June	July	Total
Cash Sales		2,250.00	2,250.00	2,700.00	3,375.00	4,050.00	6,750.00	6,750.00	28,125.00
Sales on Account		250.00	250.00	300.00	375.00	450.00	750.00	750.00	3,125.00
Total Sales		2,500.00	2,500.00	3,000.00	3,750.00	4,500.00	7,500.00	7,500.00	31,250.00


Cash Sales		2,250.00	2,250.00	2,700.00	3,375.00	4,050.00	6,750.00	6,750.00	28,125.00
Sales on Account:
January Sales			250.00						250.00
February Sales				250.00					250.00
March Sales					300.00				300.00
April Sales						375.00			375.00
May Sales							450.00		450.00
June Sales								750.00	750.00
Total Cash Collections		2,250.00	2,500.00	2,950.00	3,675.00	4,425.00	7,200.00	7,500.00	30,500.00




		January	February	March	April	May	June	July	Total
Wages Expense		1,100.00	1,100.00	1,100.00	1,100.00	1,100.00	1,100.00	1,100.00	7,700.00
Inventory(COGS)		1,000.00	1,000.00	1,200.00	1,500.00	1,800.00	3,000.00	3,000.00	12,500.00
Equipment		4,500.00							4,500.00
Rent expense		600.00	600.00	600.00	600.00	600.00	600.00	600.00	4,200.00
Total cash disbursements		7,200.00	2,700.00	2,900.00	3,200.00	3,500.00	4,700.00	4,700.00	28,900.00


		January	February	March	April	May	June	July
Beginning Cash Balance		10,000.00	5,050.00	2,600.00	-	(2,825.00)	(5,875.00)	(9,825.00)
Add: Cash Collections		2,250.00	250.00	300.00	375.00	450.00	750.00	750.00
Less: Cash Disbursements		(7,200.00)	(2,700.00)	(2,900.00)	(3,200.00)	(3,500.00)	(4,700.00)	(4,700.00)
Ending Cash Balance		5,050.00	2,600.00	-	(2,825.00)	(5,875.00)	(9,825.00)	(13,775.00)
	Where do I get this number?	January	February	March	April	May	June	July
Sales Revenue	Sales budget
Less: Cost of Goods Sold	Cash disbursements
Gross Profit	Calculate: Sales - COGS	-	-	-	-	-	-	-
Operating Expenses:
Wages Expense	Cash disbursements
Rent Expense	Cash disbursements
Depreciation expense	Calculate: Cost of Equipment÷5 years/12 months
Total Expenses	Subtotal: add wages through depreciation	-	-	-	-	-	-	-
Net Income	Calculate: Gross Profit - Total expenses	-	-	-	-	-	-	-

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