Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000...

Question

Question

Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000...

Grinnell Manufacturing Company has the following information for 2015:

Month	Budgeted Sales
January	$76,000
February	85,000
March	92,000
April	79,000

Budget Expenses per Month

Wages	$15,000
Advertising	12,000
Depreciation	3,000
Other	4 percent of sales

Note: All cash expenses are paid as incurred; Collections from sales are 50% in the month of sale and 50% in the month following the sale; December 2014 sales were $110,000.

What is the budgeted net operating income for the first quarter of 2015?

		$140,560
		$172,160
		$123,640
		$152880
		$135,280

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Calculation of budgeted net operating income for the first quarter of 2015

	January	February	March	First quarter
Sales	76,000	85,000	92,000	253,000
Less Expenses:
Wages	15,000	15,000	15,000	45,000
Advertising	12,000	12,000	12,000	36,000
Depreciation	3,000	3,000	3,000	9,000
Other expenses	3,040	3,400	3,680	10,120
Net income	42,960	51,600	58,320	152,880

budgeted net operating income for the first quarter of 2015 = $152,880

Correct option is (d)

Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubts. Thanks

Add a comment

Answer 2

Similar Homework Help Questions

Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000...

Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000 March 92,000 April 79,000 Budget Expenses per Month Wages $15,000 Advertising 12,000 Depreciation 3,000 Other 4 percent of sales Note: All cash expenses are paid as incurred; Collections from sales are 50% in the month of sale and 50% in the month following the sale; December 2014 sales were $110,000. What are the expected total cash receipts for February? $89,000 $118,500 $85,000 $88,500 $80,500
Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000...

Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000 March 92,000 April 79,000 Budget Expenses per Month Wages $15,000 Advertising 12,000 Depreciation 3,000 Other 4 percent of sales Note: All cash expenses are paid as incurred; Collections from sales are 50% in the month of sale and 50% in the month following the sale; December 2014 sales were $110,000. What is the expected total cash disbursements for expenses in February? $30,000 $30,400 $27,000...
ABC company has budgeted $100,000 of sales for January Sales are 80% cash and 20% on...

ABC company has budgeted $100,000 of sales for January Sales are 80% cash and 20% on credit Credit sales are collected 100% in the month following the sale A/R at Dec 31 = $15,000 What are the cash collections for January? Select one: O $15,000 none of the answers is correct $95,000 O $100,000 ABC company has budgeted $200,000 of sales for January. Sales are 80% credit and 20% cash Credit sales are collected 100% in the month following the...

ceuget Giant gathered the following information for the first quarter of 2015: Budgeted sales for January...

ceuget Giant gathered the following information for the first quarter of 2015: Budgeted sales for January Problem 1 (10 points) $25,000 Monthly Expenses: Salary expense $1,500 Rent expense $1,000 Depreciation expense $400 Sales commissions 10% of sales Advertising expense 8% of sales Miscellaneous expense 5% of sales Monthly sales are expected to increase 5% each month. Prepare an operating expense budget for the first quarter of 2015. Gadget Giant Operating Expense Budget For Three Months Ended March 31, 20015 January...
January February March April May June Cash Credit Sales Sales $ 80,000 $180,000 $ 85,000 $200,000...

January February March April May June Cash Credit Sales Sales $ 80,000 $180,000 $ 85,000 $200,000 $ 48,000 $160,000 $ 43,000 $128,000 $ 53,000 $230,000 $110,000 $220,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on sales: 50% in month of sale 40% in month following sale 10% in second month following sale The accounts receivable balance on...
ABC company has budgeted the following sales. January $100,000 February $200,000 Sales (on Income statement) Sales are...

ABC company has budgeted the following sales. January $100,000 February $200,000 Sales (on Income statement) Sales are 80% credit and 20% cash Credit sales are collected 100% in the month following the sale A/R at Dec 31 = $85,000 What are the cash collections for January and February? Select one: O $20,000 for January and $40,000 for February O $105,000 for January and $120,000 for February O none of the answers is correct O $20,000 for January and $120,000 for...

Derby Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted Purchases January...

Derby Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted Purchases January $190,000 $30,000 February 210,000 35,000 March 300,000 45,000 Derby’s sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Derby’s purchases are paid 60% in the month of purchase, and 40% in the month following purchase. A. Prepare a schedule of expected collections from customers for the first...
Toyota Company has budgeted sales revenues as follows: Credit sales January $260,000 February $310,000 March $4

Toyota Company has budgeted sales revenues as follows: Credit sales January $260,000 February $310,000 March $410,000 April $300,000 Past experience indicates that 69% of the credit sales will be collected in the month of sale, 23 % will be collected in the first month following the sale and the remaining 8% will be collected in the following month. Purchases of inventory are all on credit and 30% are paid in the month of purchase and 70% in the month following...
The LaGrange Corporation had the following budgeted sales for the first half of the current year:...

The LaGrange Corporation had the following budgeted sales for the first half of the current year: 3 Cash Credit Sales $ 80,000 $180,000 $ 85,000 $200,000 $ 46,000 $160,000 $ 41,000 $126,000 51,000 $230,000 $110,000 $200,000 Sales January February March April points une Skipped The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled eBook Print Collections on sales 45% in...

Sarasota Company's budgeted sales and direct materials purchases are as follows. January February March Budgeted Sales...

Sarasota Company's budgeted sales and direct materials purchases are as follows. January February March Budgeted Sales $261,300 250,800 344,000 Budgeted D.M. Purchases $39,300 43,300 44,000 Sarasota's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Sarasota's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase,...

Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000...

Homework Answers

Add Answer to:
Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000...

Post as a guest

Earn Coins