Woodruff Company prepared the following budgeted income statement for 2019: E (Click the icon to view the budgeted income statement.) - X O Data Table Read the requirements Requirement 1. Prepare a budgeted income statement with columns for 1,200 units, 1,400 units, and 1,900 units sold. Woodruff Company Woodruff Company Budgeted Income Statement For the Year Ended December 31, 2019 Budgeted Income Statement For the Year Ended December 31, 2019 Unit sales 1,400 Unit sales 1,200 1,400 1,900 Sales Revenue ($550 per unit) 770,000 308,000 Sales Revenue Cost of Goods Sold (40% of sales) Cost of Goods Sold Gross Profit 462,000 192,500 Gross Profit Selling and Administrative Expenses (25% of sales) 269,500 Selling and Administrative Expenses Operating Income Operating Income Requirement 2. How might managers use this type of budgeted income statement? Print Done The budgeted income statement prepared in Requirement 1 is a V budget. It allows Woodruff's managers to plan for sales level(s). Requirement 3. How might spreadsheet software such as Excel assist in this type of analysis? Technology, such as Excel spreadhseet software, makes it more to conduct and prepare a company's If managers have a better understanding of how changes in sales volume and costs are likely to affect V, they can V if key assumptions turn out to be wrong.
Woodruff Company prepared the following budgeted income statement for 2019: E (Click the icon to view the budgeted income statement.) - X O Data Table Read the requirements Requirement 1. Prepare a budgeted income statement with columns for 1,200 units, 1,400 units, and 1,900 units sold. Woodruff Company Woodruff Company Budgeted Income Statement For the Year Ended December 31, 2019 Budgeted Income Statement For the Year Ended December 31, 2019 Unit sales 1,400 Unit sales 1,200 1,400 1,900 Sales Revenue ($550 per unit) 770,000 308,000 Sales Revenue Cost of Goods Sold (40% of sales) Cost of Goods Sold Gross Profit 462,000 192,500 Gross Profit Selling and Administrative Expenses (25% of sales) 269,500 Selling and Administrative Expenses Operating Income Operating Income Requirement 2. How might managers use this type of budgeted income statement? Print Done The budgeted income statement prepared in Requirement 1 is a V budget. It allows Woodruff's managers to plan for sales level(s). Requirement 3. How might spreadsheet software such as Excel assist in this type of analysis? Technology, such as Excel spreadhseet software, makes it more to conduct and prepare a company's If managers have a better understanding of how changes in sales volume and costs are likely to affect V, they can V if key assumptions turn out to be wrong.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Need help with this
Transcribed Image Text:Question Help v
Woodruff Company prepared the following budgeted income statement for 2019:
E (Click the icon to view the budgeted income statement.)
Data Table
Read the requirements
Requirement 1. Prepare a budgeted income statement with columns for 1,200 units, 1,400 units, and 1,900 units sold.
Woodruff Company
Woodruff Company
Budgeted Income Statement
For the Year Ended December 31, 2019
Budgeted Income Statement
Unit sales
1,400
For the Year Ended December 31, 2019
Unit sales
1,200
1,400
1,900
Sales Revenue ($550 per unit)
$
770,000
Sales Revenue
Cost of Goods Sold (40% of sales)
308,000
Cost of Goods Sold
Gross Profit
462,000
192,500
Gross Profit
Selling and Administrative Expenses (25% of sales)
$
269,500
Selling and Administrative Expenses
Operating Income
Operating Income
Print
Done
Requirement 2. How might managers use this type of budgeted income statement?
The budgeted income statement prepared in Requirement 1 is a
V budget. It allows Woodruff's managers to plan for
V sales level(s).
Requirement 3. How might spreadsheet software such as Excel assist in this type of analysis?
Technology, such as Excel spreadhseet software, makes it more
to conduct
V and prepare a company's
V If managers have a better understanding of how changes in sales volume and costs are likely to affect
they can
V if key assumptions turn out to be wrong.
Expert Solution
Step 1 Introduction
The budgets are prepared to evaluate the expenses or income may occur for a particular condition.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education