Required Budgets are as prepared below:
XYZ Company | ||||
Sales Budget | ||||
For October, November, December 2013 | ||||
Month | ||||
Particulars | October | November | December | Total |
Cash Sales (35%) | 24,276 | 24,519 | 25,132 | 73,926 |
Credit Sales (65%) | 45,084 | 45,535 | 46,673 | 137,292 |
Total Sales | 69,360 | 70,054 | 71,805 | 211,219 |
September Sales | 68,000 | |||
October Sales (2% increase) | 69,360 | |||
November Sales (1% increase) | 70,054 | |||
December Sales (2.5% increase) | 71,805 |
XYZ Company | ||||
Cost of goods sold budget | ||||
For October, November, December 2013 | ||||
Month | ||||
Particulars | October | November | December | Total |
Cost of goods sold | 41,616 | 42,032 | 43,083 | 126,731 |
Desired Ending Inventory | 44,131 | 44,423 | 45,158 | 45,158 |
Total inventory required | 85,747 | 86,455 | 88,241 | 171,889 |
Less: Beginning inventory | 42,000 | 44,131 | 44,423 | 42,000 |
Purchases required | 43,747 | 42,323 | 43,819 | 129,889 |
XYZ Company | ||||
Operating Expense Budget | ||||
For October, November, December 2013 | ||||
Month | ||||
Particulars | October | November | December | Total |
Salaries Expense | 10,404 | 10,508 | 10,771 | 31,683 |
Depreciation Expense | 2,000 | 2,000 | 2,000 | 6,000 |
Other Operating Expenses | 6,936 | 7,005 | 7,180 | 21,122 |
Total operating expenses | 19,340 | 19,513 | 19,951 | 58,805 |
XYZ Company | ||||
Proforma Income Statement | ||||
Quarter Ending December 31, 2013 | ||||
Vertical | ||||
Particulars | Analysis | |||
Sales | 211,219 | |||
Cost of Goods Sold | 126,731 | |||
Gross profit | 84,487 | |||
Operating Expenses: | ||||
Salaries Expense | 31,683 | |||
Depreciation Expense | 6,000 | |||
Other Operating Expenses | 21,122 | |||
Total Expense | 58,805 | |||
Net Income | 25,683 |
prepare the operating budget for the XYZ Company B6 A C F XYZ Company 1 Sales...
a) Sales budget October November December Cash Sales $ 126,000.00 $ 157,500.00 $ 196,875.00 Sales on Account $ 154,000.00 $ 192,500.00 $ 240,625.00 Total Budgeted Sales $ 280,000.00 $ 350,000.00 $ 437,500.00 b) Schedule of cash receipts October November December Current Cash sales $ 126,000.00 $ 157,500.00 $ 196,875.00 Add: Collection From A/R $ $ 154,000.00 $ 192,500.00 Total Collections $ 126,000.00 $ 311,500.00 $ 389,375.00 C) Inventory purchase budget October November December Budgeted Cost of goods sold $ 168,000.00...
RequiredOctober sales are estimated to be $140,000, of which 35 percent will be cash and 65 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget.The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts.The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum...
Brief Exercise 23-8 North Company has completed all of its operating budgets. The sales budget for the year shows 50,000 units and total sales of $2,250,000. The total unit cost of making one unit of sales is $25. Selling and administrative expenses are expected to be $300,000. Interest is estimated to be $10,000. Income taxes are estimated to be $200,000. Prepare a budgeted multiple-step income statement for the year ending December 31, 2017. NORTH COMPANY Budgeted Income Statement Net Income...
Prepare the following budgets for November and December: 1. Sales budget 2. Cost of goods sold, inventory, and purchases budget 3. Operating expense budget 4. Budgeted income statement October sales were $260,000. Sales are projected to go up by 8% in November (from the October sales) and another 25% in December (from the November sales) and then return to the October level in January. 25% of sales are made in cash, while the remaining 75% are paid by credit or...
The budget director of Heather’s Florist has prepared the following sales budget. The company had $370,000 in accounts receivable on July 1. Heather’s Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required Complete the schedule of cash payments for S&A expenses by filling in the missing amounts. Determine the amount of salaries payable the company will report on its pro forma balance sheet at the end of the fourth quarter. Determine the...
A-E have been solved (I included the answers here), so all I need is f-j! ! Required information [The following information applies to the questions displayed below.) Vernon Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the...
Question 1 Cumulative Problem: XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating expenses are $2,100,000, interest expense $20,000 and depreciation 30,000. Tax rate 40%. Construct their income statement and answer the below: Gross profit is ___. a. 2,400,000 b. 1,920,000 c. 730,000 d. 2,880,000 Question 2 What best describes operating profit margin? a. earnings before interest and tax in relation to sales b. the impact of depreciation on taxes paid c. cost of goods sold in...
Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.55 million. Interest expense is expected to remain unchanged at $36,000, and the firm plans to pay $65,000 in cash dividends during 2020. Metroline Manufacturing's income statement for the year ended December 31, 2019, is given , along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components. a. Use the percent-of-sales method...
Required information The following information applies to the questions displayed below.) Rundle Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks: h. Prepare a pro forma income statement for the quarter. i. Prepare a pro forma...
Rundle Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Rundle’s policy is to maintain an ending inventory balance equal to 15 percent of the following month’s cost of goods sold. April’s budgeted cost of goods sold is $83,000. Required Complete the inventory purchases budget by filling in the missing amounts. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. Determine...