Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate Given information: Cost of goods sold is 60% of sales revenue Selling and administration expenses are 10% of sales revenue Expected sales by Person F is 8% and by Person B is 5%

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Answer 1

Question

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

c)

To determine

The reason for the different estimates by two officers

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Question 1 View Policies Current Attempt in Progress Heaters, Inc. provided the following budgeted information for March through July July June May April March $104,600 $123,000 $115,000 $132,000 $141,400 Projected sales Projected merchandise purchases $82,000 $92,400 $75,300 $66,600 $73,000 $12,000 $13,600 $11,300 $12,400 $14,300 Inventory at end of month . Heaters estimates that it will collect 30% of its sales in the month of sale and 70% in the month after the sale . General operating expenses are budgeted to be $31,000 per month of which depreciation is $3,000 of this amount. Heater pays operating expenses in the month incurred . The income tax rate is 30%. How much is budgeted net income for May? $4,480. O $6,400. $6,090. O $8,400. A hp fs + f6 ins prt sc fio fn 12 home delete II & 7 6 8 backspace loc P

Exercise 6 (Selling and Administrative Budget) The budgeted unit sales of Helene Company for the upcoming fiscal year are provided below: 3rd quarter 11,000 4th quarter 1s' quarter 12,000 2nd quarter 14,000 Budgeted unit sales 10,000 The company's variable selling and administrative expenses per unit are P2.75. Fixed selling and administrative expenses include advertising expenses of P12,000 per quarter, executive salaries of P40,000 per quarter, and depreciation of P16,000 per quarter. In addition, the company will make insurance payments of P6,000 in the 2nd Quarter and P6,000 in the 4th Quarter. Finally, property taxes of P6,000 will be paid in the 3rd Quarter.

Exercise 7-48 Preparing sales budgets with different assumptions Plano International Company has three subsidiaries, Seymour Trading Company, Archer Medical Supplies Company, and Milsap Shipping Company. Because the subsidiaries operate in different industries, Plano's corporate budget for the coming year must reflect the different growth potentials of the individual industries. The growth expectations per quarter for the subsidiaries are 4 percent for Seymour, 1 percent for Archer, and 3 percent for Milsap. Subsidiary Current Quarter Sales First Quarter Second Quarter Third Quarter Fourth Quarter Seymour $100,000 Archer 120.000 Milsap 160.000 ? ? ? ? Required a. Complete the sales budget by filling in the missing amounts. (Round the figures to the nearest dollar) b. Determine the amount of sales revenue Plano will report on the quarterly pro forme income statements.

Answer 2

Question

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

c)

To determine

The reason for the different estimates by two officers

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

c)

To determine

The reason for the different estimates by two officers

Expert Solution & Answer

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Answer 4

Question

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

c)

To determine

The reason for the different estimates by two officers

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

c)

To determine

The reason for the different estimates by two officers

Answer 6

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

Answer 7

Chapter 14, Problem 15E

a)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

Answer 8

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

Answer 9

b)

To determine

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

Answer 10

c)

To determine

The reason for the different estimates by two officers

Answer 11

c)

To determine

The reason for the different estimates by two officers

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

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Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate Given information: Cost of goods sold is 60% of sales revenue Selling and administration expenses are 10% of sales revenue Expected sales by Person F is 8% and by Person B is 5%

Solution Summary: The author explains the reason for the different estimates by two officers. The element of forecasting because it cannot be accurate at 100%.

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

The reason for the different estimates by two officers

Want to see the full answer?

Chapter 14 Solutions

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate Given information: Cost of goods sold is 60% of sales revenue Selling and administration expenses are 10% of sales revenue Expected sales by Person F is 8% and by Person B is 5%

Solution Summary: The author explains the reason for the different estimates by two officers. The element of forecasting because it cannot be accurate at 100%.

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate Given information: Cost of goods sold is 60% of sales revenue Selling and administration expenses are 10% of sales revenue Expected sales by Person F is 8% and by Person B is 5%

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate Given information: Cost of goods sold is 60% of sales revenue Selling and administration expenses are 10% of sales revenue Expected sales by Person F is 8% and by Person B is 5%

The reason for the different estimates by two officers

Want to see the full answer?

Chapter 14 Solutions

Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%

Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate

Given information:

Cost of goods sold is 60% of sales revenue

Selling and administration expenses are 10% of sales revenue

Expected sales by Person F is 8% and by Person B is 5%