Preparing a budgeted income statement
Using the information for Hornick and Sena, the systems consultants in P9-3 and P9-4, prepare a budgeted income statement for the year ended December 31, 2013.
Reference: P9-4
Preparing an overhead budget and an other expenses budget
Hornick and Sena, the systems consultants in P9-3, budgeted overhead and other expenses as follows for the year ended December 31, 2013:
Overhead:
Depreciation–equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000
Depreciation–building. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,000
Fringe benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385,000
Photocopying . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,000
Secretarial support. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465,000
Telephone/fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,000
Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193,000
Other direct expenses:
Travel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $123,000
Meals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,000
Required:
1. Prepare an Overhead budget.
2. Prepare an Other Expenses budget.
Reference: P9-3
Preparing a revenue budget and a labor budget for a service business
Hornick and Sena, partners in a systems consulting firm, budgeted the following professional labor hours for the year ended December 31, 2013:
Partners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000
Staff. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000
Partners have a billing rate of $225 per hour and actually earn $110 per hour. Associates bill out at $140 per hour and earn $85 per hour. Staff bill out at a rate of $75 per hour and earn $35 per hour.
Required:
1. Prepare a revenue budget.
2. Prepare a professional labor budget.
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