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 ,

Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)

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ISBN: 9780134642093

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

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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

Chapter 9, Problem 9.48BE

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Chapter 9 Solutions

Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)

Ch. 9 - (Learning Objective 1) Which term describes the...Ch. 9 - (Learning Objective 1) Benefits of budgeting...Ch. 9 - Prob. 3QC Ch. 9 - Prob. 4QC Ch. 9 - Prob. 5QC Ch. 9 - Prob. 6QC Ch. 9 - Prob. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Prob. 9QC Ch. 9 - Prob. 10QC

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

Solution Summary: The author explains the budgeted income statement for the quarter ended on December 31 for Company C. It includes all estimated income and expenses from the entire operating source, including corporate tax.

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

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