Explanation Budgeted income statement: This budget is prepared by the organization for the yearly, quarterly, or monthly basis as per need to find estimated income after corporate tax. It includes all the estimated income and expenses from the entire operating source, including corporate tax. Statement showing calculation for quarterly budgeted income statement for the year ending on March 31: Company C Budgeted income statement For the year ended December 31 (Amount in $) Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Sells (a) 4,120,000(1) 4,400,000(2) 4,360,000(3) 4,320,000(4) 17,200,000 Less: Cost of sell ( a × 55 % ) 2,266,000 2,420,000 2,398,000 2,376,000 9,460,000 Less: Operating expenses 824,000(5) 1,540,000(6) 1,090,000(7) 1,080,000(8) 4,534,000 Total income (b) 1,030,000 440,000 872,000 864,000 3,206,000 Less: Corporate tax ( b × 30 % ) 309,000 132,000 261,600 259,200 961,800 Income after tax 721,000 308,000 610,400 604,800 2,244,200 Table (1) Total of the yearly budgeted income is finding out by adding quarterly income after tax. Last quarter of previous year sell is $4,000,000. Increase in sell in 1 st quarter is 3%. Increase in sell in 2 nd quarter is another 7%. Increase in sell in 3 rd quarter is another 6%. Increase in sell in 4 th quarter is another 5%. Working note: Calculation for sell in 1 st quarter: Sell = 4 , 000 , 000 ( 1 + 6 % ) = $ 4 , 240 , 000 (1) Calculation for sell in 2 nd quarter: Sell = 4 , 000 , 000 ( 1 + 3 % + 7 % ) = $ 4 , 400 ,

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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…

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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…

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Chapter 9, Problem 9.47BE

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The budgeted income statement for the quarter ended on December 31 for Company C.

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Chapter 9, Problem 9.46BE

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The budgeted income statement for the quarter ended on December 31 for Company C.

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The budgeted income statement for the quarter ended on December 31 for Company C.

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Chapter 9 Solutions