Question

Chapter 22 for the year beginning l y 1, 2017, the general e s of December 31, 208, is prepared by the counting Budited Income Statement and Balance Sheet As a preliminary to requesting b estmates osas, costs, and Department of Rena Soroc $102.300 Accounts Receivable 152.000 Fshed Goods 38,200 Work in process 25.500 Materials 41,900 Prepaid Expenses 3.100 Plant and Equipment 533,500 Accumulated Depreciation --Pant and Equipment Accounts Payable Common Stack, $10 par $229,400 155,100 300.000 24,500 and Earnings 39.000 5927.000 5.000 dt, whethe 5120 The Gu n d t hewors at December 31, 2019. are expected to remain unchanged Factory Studies 2018 ested to the b est the beginning of the year Budget of manufacturing costs and operati o ns for the resum e fotos

Answer 1

REGINA SOAP CO. Budgeted Income Statement For the Year Ending December 31, 20Y8 $ 30,00,000 $ 7,50,000 2,37,500 1,70,300 11,57,800 $ 18,42,200 Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Operating expenses: Selling expenses: Sales salaries and commissions Advertising Miscellaneous selling expense Total selling expenses Administrative expenses: Office and officers salaries Supplies Miscellaneous admin. expenses Total administrative expenses Total operating expenses Income before income tax Income tax expense Net income $ 4,64,800 75,000 69,000 $ 6,08,800 $ 2,46,500 28,000 51,600 3,26,100 9,34,900 $ 9,07,300 2,72,200 $ 6,35, 100 Supporting calculations for budgeted income statement: $ Factory overhead: Variable overhead Depreciation Other Total $ 1,37,500 25,000 7,800 $ 1,70,300 Office and officers salaries: Fixed portion Variable portion Total 59,000 1,87,500 2,46,500 $ $ Sales salaries and commissions: Fixed portion Variable portion Total $ 89,800 3,75,000 $ 4,64,800 Supplies expense: Fixed portion Variable portion Total 3,000 25,000 28,000 $ $ Miscellaneous selling expenses Fixed portion Variable portion Total 6,500 62,500 69,000 Miscellaneous administrative expenses: Fixed portion $ Variable portion Total $ 1,600 50,000 51,600 $ REGINA SOAP CO. Budgeted Balance Sheet For the Year Ending December 31, 20Y8 Assets Current assets: Cash $ 4,98,900 Accounts receivable 1,82,000 Inventories: Finished goods $ 38,200 Work in process 25,500 Materials 41,900 1,05,600 Prepaid expenses 3,100 Total current assets Property, plant, and equipment: Plant and equipment $ 6,77,500 Less accumulated depreciation 2,54,400 Total assets $ 7,89,600 4,23,100 $ 12, 12,700 Liabilities Current liabilities: Accounts payable $ 1,55,100 Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 3,00,000 7,57,600 10,57,600 $ 12, 12,700 Supporting calculations for budgeted balance sheet: $ 1,02,800 Cash balance: Balance, January 1, 2015 Plus cash from operations: Net income (from budgeted income statement) Depreciation (add back noncash item) Less planned nonoperating cash outflows: Dividends to be paid in 2015 Plant and equipment to be acquired in 2015 Balance, December 31, 2015 $ 6,35,100 25,000 6,60,100 $ (1,20,000) (1,44,000) $ (2,64,000) 4,98,900 Retained earnings balance: Balance, January 1, 2015 Plus expected net income for 2015 Less dividends to be paid in 2015 Balance, December 31, 2015 $ 2,42,500 6,35, 100 (1,20,000) $ 7,57,600