Noventis Corporation prepared the following estimates for the four quarters of the current year: First Quarter...
Noventis Corporation prepared the following estimates for the four quarters of the current year:
| First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
|||||||||
| Sales | $ | 1,250,000 | $ | 1,500,000 | $ | 1,750,000 | $ | 2,000,000 | ||||
| Cost of goods sold | 425,000 | 505,000 | 575,000 | 625,000 | ||||||||
| Administrative costs | 300,000 | 180,000 | 185,000 | 195,000 | ||||||||
| Advertising costs | 0 | 200,000 | 0 | 0 | ||||||||
| Executive bonuses | 0 | 0 | 0 | 72,000 | ||||||||
| Provision for bad debts | 0 | 0 | 0 | 62,000 | ||||||||
| Annual maintenance costs | 70,000 | 0 | 0 | 0 | ||||||||
Additional Information
- First-quarter administrative costs include the $150,000 annual insurance premium.
- Advertising costs paid in the second quarter relate to television advertisements that will be broadcast throughout the entire year.
- No special items affect income during the year.
- Noventis estimates an effective income tax rate for the year of 40 percent.
-
Assuming that actual results do not vary from the estimates provided, determine the amount of net income to be reported each quarter of the current year.
net income 1st quarter 2nd quarter 3rd quarter 4th quarter -
Assume that actual results do not vary from the estimates provided except for that in the third quarter, the estimated annual effective income tax rate is revised downward to 38 percent. Determine the amount of net income to be reported each quarter of the current year.
net income 1st quarter 2nd quarter 3rd quarter 4th quarter
Homework Answers
a)
| Particulars | Qtr 1 | Qtr 2 | Qtr 3 | Qtr 4 |
| Sales | 1250000 | 1500000 | 1750000 | 2000000 |
| Less : Cost of Goods Sold | (425000) | (505000) | (575000) | (625000) |
| Less : Administrative Costs (see below) | (187500) | (217500) | (222500) | (232500) |
| Less : Advertising Costs (200000/4) | (50000) | (50000) | (50000) | (50000) |
| Less : Executive Bonuses (72000/4) | (18000) | (18000) | (18000) | (18000) |
| Less : Provision for bad debts (62000/4) | (15500) | (15500) | (15500) | (15500) |
| Less : Annual Maintenance Costs (70000/4) | (17500) | (17500) | (17500) | (17500) |
| Income before Tax | 536500 | 676500 | 851500 | 1041500 |
| Income Tax @ 40% | (214600) | (270600) | (340600) | (416600) |
| Net Income | 321900 | 405900 | 510900 | 624900 |
Administrative Costs :-
| Qtr 1 | Qtr 2 | Qtr 3 | Qtr 4 | |
| Total Administrative Cost | 300000 | |||
| Less : Annual Insurance Premium Included | (150000) | |||
| Net Administrative Cost for Qtr 1 | 150000 | 180000 | 185000 | 195000 |
| Add : Insurance premium per Qtr. (150000/4) | 37500 | 37500 | 37500 | 37500 |
| Administrative Cost (Net) | 187500 | 217500 | 222500 | 232500 |
b)
| Particulars | Qtr 1 | Qtr 2 | Qtr 3 | Qtr 4 |
| Sales | 1250000 | 1500000 | 1750000 | 2000000 |
| Less : Cost of Goods Sold | (425000) | (505000) | (575000) | (625000) |
| Less : Administrative Costs (see below) | (187500) | (217500) | (222500) | (232500) |
| Less : Advertising Costs (200000/4) | (50000) | (50000) | (50000) | (50000) |
| Less : Executive Bonuses (72000/4) | (18000) | (18000) | (18000) | (18000) |
| Less : Provision for bad debts (62000/4) | (15500) | (15500) | (15500) | (15500) |
| Less : Annual Maintenance Costs (70000/4) | (17500) | (17500) | (17500) | (17500) |
| Income before Tax | 536500 | 676500 | 851500 | 1041500 |
| Income Tax@40% for qtr 1,2&4 and Qtr 3 @38% | (214600) | (270600) | (323570) | (416600) |
| Net Income | 321900 | 405900 | 527930 | 624900 |
Add Answer to:
Noventis Corporation prepared the following estimates for the
four quarters of the current year:
First
Quarter...
Noventis Corporation prepared the following estimates for the four quarters of the current year: First Quarter...
Noventis Corporation prepared the following estimates for the
four quarters of the current year:
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Sales
$
1,575,000
$
1,890,000
$
2,205,000
$
2,520,000
Cost of goods sold
458,000
538,000
608,000
658,000
Administrative costs
380,000
220,000
225,000
235,000
Advertising costs
0
120,000
0
0
Executive bonuses
0
0
0
104,000
Provision for bad debts
0
0
0
78,000
Annual maintenance costs
86,000
0
0
0
Additional Information
First-quarter administrative costs include the $120,000...
Noventis Corporation prepared the following estimates for the four quarters of the current year: $ First...
Noventis Corporation prepared the following estimates for the four quarters of the current year: $ First Quarter 1,525, 000 454.209 4ee, 800 $ $ Third Quarter 2,135,000 684,800 235,899 $ Second Quarter 1,830,000 534,00 230,899 160, eee Fourth Quarter 2,440,000 654.209 245,899 Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs 64.ee 82,800 90,000 Additional Information • First-quarter administrative costs include the $140.000 annual insurance premium. 1. Advertising costs paid in...
Noventis Corporation prepared the following estimates for the four quarters of the current year: $ First...
Noventis Corporation prepared the following estimates for the four quarters of the current year: $ First Quarter 1,525, 000 454.209 4ee, 800 $ $ Third Quarter 2,135,000 684,800 235,899 $ Second Quarter 1,830,000 534,00 230,899 160, eee Fourth Quarter 2,440,000 654.209 245,899 Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs 64.ee 82,800 90,000 Additional Information • First-quarter administrative costs include the $140.000 annual insurance premium. 1. Advertising costs paid in...
Check Noventis Corporation prepared the following estimates for the four quarters of the current year. $...
Check Noventis Corporation prepared the following estimates for the four quarters of the current year. $ First Quarter 1,300,eee 430,000 310,000 $ Second Quarter 1,560,000 510,000 185,000 100,000 Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs $ Third Quarter 1,820,000 580,000 190,000 $ Fourth Quarter 2,080,000 630,000 200,000 76,000 64,000 72,000 Additional Information • First-quarter administrative costs include the $160.000 annual insurance premium • Advertising costs paid in the second...
Noventis Corporation prepared the following estimates for the four quarters of the current year: First Quarter...
Noventis Corporation prepared the following estimates for the four quarters of the current year: First Quarter Second Quarter Third Quarter Fourth Quarter Sales $ 1,550,000 $ 1,860,000 $ 2,170,000 $ 2,480,000 Cost of goods sold 456,000 536,000 606,000 656,000 Administrative costs 390,000 225,000 230,000 240,000 Advertising costs 0 140,000 0 0 Executive bonuses 0 0 0 60,000 Provision for bad debts 0 0 0 80,000 Annual maintenance costs 88,000 0 0 0 Additional Information First-quarter administrative costs include the $130,000...
Noventis Corporation prepared the following estimates for the four quarters of the current year: First Quarter...
Noventis Corporation prepared the following estimates for the four quarters of the current year: First Quarter Second Quarter Third Quarter Fourth Quarter Sales $ 1,300,000 $ 1,560,000 $ 1,820,000 $ 2,080,000 Cost of goods sold 430,000 510,000 580,000 630,000 Administrative costs 310,000 185,000 190,000 200,000 Advertising costs 0 100,000 0 0 Executive bonuses 0 0 0 76,000 Provision for bad debts 0 0 0 64,000 Annual maintenance costs 72,000 0 0 0 Additional Information First-quarter administrative costs include the $160,000...
Noventis Corporation prepared the following estimates for the four quarters of the current year: First Quarter...
Noventis Corporation prepared the following estimates for the four quarters of the current year: First Quarter Second Quarter Third Quarter Fourth Quarter Sales $ 1,200,000 $ 1,440,000 $ 1,680,000 $ 1,920,000 Cost of goods sold 420,000 500,000 570,000 620,000 Administrative costs 290,000 175,000 180,000 190,000 Advertising costs 0 180,000 0 0 Executive bonuses 0 0 0 68,000 Provision for bad debts 0 0 0 60,000 Annual maintenance costs 68,000 0 0 0 Additional Information First-quarter administrative costs include the $140,000...
PLEASE SHOW WORK. Thank you. Noventis Corporation prepared the following estimates for the four quarters of...
PLEASE SHOW WORK.
Thank you.
Noventis Corporation prepared the following estimates for the four quarters of the current year: $ First Quarter 1,300,000 430,000 310,000 $ Second Quarter 1,560,000 510,000 185,000 100,000 $ Third Quarter 1,820,000 580,000 190,000 $ Fourth Quarter 2,080,000 630,000 200,000 Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs 76,000 64,000 72,000 Additional Information • First-quarter administrative costs include the $160,000 annual insurance premium. • Advertising costs...
Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 33,000...
Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 33,000 2nd Quarter 35,000 3rd Quarter 26,000 4th Quarter 31,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $3.20. Fixed selling and administrative expenses include advertising expenses of $10,000 per quarter, executive salaries of $53,000 per quarter, and depreciation of $32,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in...
Weller Company's budgeted unit sales for the upcoming fiscal year are provided below 1st Quarter 2nd Quarter 3rd Qu...
Weller Company's budgeted unit sales for the upcoming fiscal year are provided below 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 27,000 20,000 25,000 Budgeted unit sales 28,000 The company's variable selling and administrative expense per unit is $2.60. Fixed selling and administrative expenses include advertising expenses of $12,000 per quarter, executive salaries of $47,000 per quarter, and depreciation of $26,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first querter and $5,000 in...
Noventis Corporation prepared the following estimates for the
four quarters of the current year:
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Sales
$
1,575,000
$
1,890,000
$
2,205,000
$
2,520,000
Cost of goods sold
458,000
538,000
608,000
658,000
Administrative costs
380,000
220,000
225,000
235,000
Advertising costs
0
120,000
0
0
Executive bonuses
0
0
0
104,000
Provision for bad debts
0
0
0
78,000
Annual maintenance costs
86,000
0
0
0
Additional Information
First-quarter administrative costs include the $120,000...
Noventis Corporation prepared the following estimates for the four quarters of the current year: $ First Quarter 1,525, 000 454.209 4ee, 800 $ $ Third Quarter 2,135,000 684,800 235,899 $ Second Quarter 1,830,000 534,00 230,899 160, eee Fourth Quarter 2,440,000 654.209 245,899 Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs 64.ee 82,800 90,000 Additional Information • First-quarter administrative costs include the $140.000 annual insurance premium. 1. Advertising costs paid in...
Noventis Corporation prepared the following estimates for the four quarters of the current year: $ First Quarter 1,525, 000 454.209 4ee, 800 $ $ Third Quarter 2,135,000 684,800 235,899 $ Second Quarter 1,830,000 534,00 230,899 160, eee Fourth Quarter 2,440,000 654.209 245,899 Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs 64.ee 82,800 90,000 Additional Information • First-quarter administrative costs include the $140.000 annual insurance premium. 1. Advertising costs paid in...
Check Noventis Corporation prepared the following estimates for the four quarters of the current year. $ First Quarter 1,300,eee 430,000 310,000 $ Second Quarter 1,560,000 510,000 185,000 100,000 Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs $ Third Quarter 1,820,000 580,000 190,000 $ Fourth Quarter 2,080,000 630,000 200,000 76,000 64,000 72,000 Additional Information • First-quarter administrative costs include the $160.000 annual insurance premium • Advertising costs paid in the second...
PLEASE SHOW WORK.
Thank you.
Noventis Corporation prepared the following estimates for the four quarters of the current year: $ First Quarter 1,300,000 430,000 310,000 $ Second Quarter 1,560,000 510,000 185,000 100,000 $ Third Quarter 1,820,000 580,000 190,000 $ Fourth Quarter 2,080,000 630,000 200,000 Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs 76,000 64,000 72,000 Additional Information • First-quarter administrative costs include the $160,000 annual insurance premium. • Advertising costs...
Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 33,000 2nd Quarter 35,000 3rd Quarter 26,000 4th Quarter 31,000 Budgeted unit sales The company's variable selling and administrative expense per unit is $3.20. Fixed selling and administrative expenses include advertising expenses of $10,000 per quarter, executive salaries of $53,000 per quarter, and depreciation of $32,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in...
Weller Company's budgeted unit sales for the upcoming fiscal year are provided below 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 27,000 20,000 25,000 Budgeted unit sales 28,000 The company's variable selling and administrative expense per unit is $2.60. Fixed selling and administrative expenses include advertising expenses of $12,000 per quarter, executive salaries of $47,000 per quarter, and depreciation of $26,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first querter and $5,000 in...
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