Static Budget: The budget that remains same throughout the period irrespective of the change in actual activity level is known as Static budget. The static planning budget.

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Answer 1

Question

Chapter 9, Problem 1Q

To determine

Static Budget: The budget that remains same throughout the period irrespective of the change in actual activity level is known as Static budget.

The static planning budget.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The budget which is prepared based on the budgeted sales volume and does not change as the volume changes due to actual behavior of sales called a static planning budget. A static budget is fixed in nature which is prepared based on the estimation and remains the same even if the real activity increases or decreases.

Explanation of Solution

In simple words, it is an estimation of incomes and expenses regarding future course of business activities. Static budget is prepared based on historical operational data and objectives of the business operation. It is prepared with the motives of planning the sales operations and guiding the flow of the business.

Given: What is a static planning budget?

Conclusion

Static budget is the planned operation which is prepared at one level of activity and remains the same even if actual results are greater or smaller than the planned. It is used as an evaluation measure to determine the difference between the budgeted sales volume and actual sale result of the company.

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Financing Deficit Stevens Textile Corporation's 2019 financial statements are shown below: Just need the correct LOC? Balance Sheet as of December 31, 2019 (Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320 Receivables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0 Total current assets $16,560 Notes payable 2,100 Net fixed assets 12,600 Total current liabilities $ 9,300 Mortgage bonds 3,500 Common stock 3,500 Retained earnings 12,860 Total assets $29,160 Total liabilities and equity $29,160 Income Statement for December 31, 2019 (Thousands of Dollars) Sales $36,000 Operating costs 34,000 Earnings before interest and taxes $ 2,000 Interest 160 Pre-tax earnings $ 1,840 Taxes (25%) 460 Net income $ 1,380 Dividends (40%) $ 552 Addition to retained earnings $ 828 Stevens grew rapidly in 2019 and financed the growth with notes payable and long-term bonds. Stevens expects sales to…

Answer 2

Question

Chapter 9, Problem 1Q

To determine

Static Budget: The budget that remains same throughout the period irrespective of the change in actual activity level is known as Static budget.

The static planning budget.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The budget which is prepared based on the budgeted sales volume and does not change as the volume changes due to actual behavior of sales called a static planning budget. A static budget is fixed in nature which is prepared based on the estimation and remains the same even if the real activity increases or decreases.

Explanation of Solution

In simple words, it is an estimation of incomes and expenses regarding future course of business activities. Static budget is prepared based on historical operational data and objectives of the business operation. It is prepared with the motives of planning the sales operations and guiding the flow of the business.

Given: What is a static planning budget?

Conclusion

Static budget is the planned operation which is prepared at one level of activity and remains the same even if actual results are greater or smaller than the planned. It is used as an evaluation measure to determine the difference between the budgeted sales volume and actual sale result of the company.

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Answer 3

Question

Chapter 9, Problem 1Q

To determine

Static Budget: The budget that remains same throughout the period irrespective of the change in actual activity level is known as Static budget.

The static planning budget.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The budget which is prepared based on the budgeted sales volume and does not change as the volume changes due to actual behavior of sales called a static planning budget. A static budget is fixed in nature which is prepared based on the estimation and remains the same even if the real activity increases or decreases.

Explanation of Solution

In simple words, it is an estimation of incomes and expenses regarding future course of business activities. Static budget is prepared based on historical operational data and objectives of the business operation. It is prepared with the motives of planning the sales operations and guiding the flow of the business.

Given: What is a static planning budget?

Conclusion

Static budget is the planned operation which is prepared at one level of activity and remains the same even if actual results are greater or smaller than the planned. It is used as an evaluation measure to determine the difference between the budgeted sales volume and actual sale result of the company.

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Answer 4

Question

Chapter 9, Problem 1Q

To determine

Static Budget: The budget that remains same throughout the period irrespective of the change in actual activity level is known as Static budget.

The static planning budget.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The budget which is prepared based on the budgeted sales volume and does not change as the volume changes due to actual behavior of sales called a static planning budget. A static budget is fixed in nature which is prepared based on the estimation and remains the same even if the real activity increases or decreases.

Explanation of Solution

In simple words, it is an estimation of incomes and expenses regarding future course of business activities. Static budget is prepared based on historical operational data and objectives of the business operation. It is prepared with the motives of planning the sales operations and guiding the flow of the business.

Given: What is a static planning budget?

Conclusion

Static budget is the planned operation which is prepared at one level of activity and remains the same even if actual results are greater or smaller than the planned. It is used as an evaluation measure to determine the difference between the budgeted sales volume and actual sale result of the company.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1Q

To determine

Static Budget: The budget that remains same throughout the period irrespective of the change in actual activity level is known as Static budget.

The static planning budget.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The budget which is prepared based on the budgeted sales volume and does not change as the volume changes due to actual behavior of sales called a static planning budget. A static budget is fixed in nature which is prepared based on the estimation and remains the same even if the real activity increases or decreases.

Explanation of Solution

In simple words, it is an estimation of incomes and expenses regarding future course of business activities. Static budget is prepared based on historical operational data and objectives of the business operation. It is prepared with the motives of planning the sales operations and guiding the flow of the business.

Given: What is a static planning budget?

Conclusion

Static budget is the planned operation which is prepared at one level of activity and remains the same even if actual results are greater or smaller than the planned. It is used as an evaluation measure to determine the difference between the budgeted sales volume and actual sale result of the company.

Answer 6

Chapter 9, Problem 1Q

To determine

Static Budget: The budget that remains same throughout the period irrespective of the change in actual activity level is known as Static budget.

The static planning budget.

Expert Solution & Answer

Answer to Problem 1Q

Solution: The budget which is prepared based on the budgeted sales volume and does not change as the volume changes due to actual behavior of sales called a static planning budget. A static budget is fixed in nature which is prepared based on the estimation and remains the same even if the real activity increases or decreases.

Explanation of Solution

In simple words, it is an estimation of incomes and expenses regarding future course of business activities. Static budget is prepared based on historical operational data and objectives of the business operation. It is prepared with the motives of planning the sales operations and guiding the flow of the business.

Given: What is a static planning budget?

Conclusion

Static budget is the planned operation which is prepared at one level of activity and remains the same even if actual results are greater or smaller than the planned. It is used as an evaluation measure to determine the difference between the budgeted sales volume and actual sale result of the company.

Answer 7

Chapter 9, Problem 1Q

To determine

Static Budget: The budget that remains same throughout the period irrespective of the change in actual activity level is known as Static budget.

The static planning budget.

Answer 8

Expert Solution & Answer

Answer to Problem 1Q

Solution: The budget which is prepared based on the budgeted sales volume and does not change as the volume changes due to actual behavior of sales called a static planning budget. A static budget is fixed in nature which is prepared based on the estimation and remains the same even if the real activity increases or decreases.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

In simple words, it is an estimation of incomes and expenses regarding future course of business activities. Static budget is prepared based on historical operational data and objectives of the business operation. It is prepared with the motives of planning the sales operations and guiding the flow of the business.

Given: What is a static planning budget?

Answer 12

Conclusion

Static budget is the planned operation which is prepared at one level of activity and remains the same even if actual results are greater or smaller than the planned. It is used as an evaluation measure to determine the difference between the budgeted sales volume and actual sale result of the company.