Question

Zulu, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are forecasted at 40,000 for January, 60,000 for February, and 50,000 for March. Cost of goods sold is $14 per unit. Other expense information for the first quarter follows Commissions Rent Advertising Office salaries Depreciation Interest Tax rate 10% of sales $20,000 per month 15% of sales $75,000 per month $50,000 per month 15% annually on a $250,000 note payable 40% Prepare a budgeted income statement for this first quarter (Input all amounts as positive values. Do not round Intermediate calculations. Omit the "S" sign your response.) ZULU INC Budgeted Income Statement For Quarter Ended March 31 (Click to select) (Click to select) (Click to select) Operating expenses (Click to select) Click to select) (Click to select (Click to select) (Click to select) (Click to select) siis Total operating expenses (Click to select) (Click to select kk

Answer 1

fox sales revenue B7 А В C E 1 all amounts are in $ 2 3 4 ZULU, INC. Budgeted Income Statement 5 For Quarter Ended March 31 6 sales revenue 7 3,750,000 cost of goods sold 2,100,000 gross profit operating expenses 1,650,000 10 commission expense 11 375,000 12 60,000 rent expense advertising expense 562,500 13 office salaries expense 14 225,000 depreciation expense 15 150,000 interest expense 16 9,375 total operating expenses income before taxes income tax expense net income 17 1,381,875 268,125 18 19 107,250 20 160,875 21 X

for formulas and calculations, refer to the image below -

fox sales revenue B7 A В E 1 all amounts are in $ 2 ZULU, INC. Budgeted Income Statement 6 For Quarter Ended March 31 = (40000+60000+50000)*25 - (40000+60000+50000) *14 sales revenue 7 cost of goods sold gross profit operating expenses D7-D8 10 11 commission expense D7*10% -20000*3 -D7*15% 12 rent expense 13 advertising expense office salaries expense - 75000*3 14 -50000*3 -250000*15%*3/12 depreciation expense 15 16 interest expense total operating expenses income before taxes income tax expense net income -SUM(C11:C16) -D9-D17 17 18 -D18*40% =D18-D19 19 20 21 Ln CO

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