Q3. Central Trading LLC, Oman operates in three countries UAE, India and Oman, which sells three branded products named as pen, pencil and eraser. The budget committee needs a sales budget for the next three months July, August and September are as follows: ProductUAE Pencil 1,00,00030,000 70,000 80,000 65,000 80.000 Eraser 40,000 45,000|40,000 Actual sales units for the current year based on actual sales to the date and estimated sales for the balance of the year are: Product UAE India Oman Pencil 70,000 s0,000 70,000 Pen India Oman Pen |60,000 75,000 90,000 Eraser 25,000 40,000 30,000 The selling prices per unit of pencil, pen and eraser are OMR 5, OMR 10 and OMR I respectively. In the discussion with divisional sales managers, it was informed that product pencil is oversold. They proposed the following: • If the price is increased by 10%, even then it finds a ready market. • Price of pen can be reduced by 5% and eraser by 10%. By incorporating these changes, the sales will be as follows: Product UAE India Pencil (+30%)(+40%)(+20%)| |-10%) (+30%) -10%) Raiser +10%)(+20%)(+10%) You are required to prepare the budget for the current year as well as budget for next year. Oman Pen

Q3. Central Trading LLC, Oman operates in three countries UAE, India and Oman, which sells three branded products named as pen, pencil and eraser. The budget committee needs a sales budget for the next three months July, August and September are as follows: ProductUAE Pencil 1,00,00030,000 70,000 80,000 65,000 80.000 Eraser 40,000 45,000|40,000 Actual sales units for the current year based on actual sales to the date and estimated sales for the balance of the year are: Product UAE India Oman Pencil 70,000 s0,000 70,000 Pen India Oman Pen |60,000 75,000 90,000 Eraser 25,000 40,000 30,000 The selling prices per unit of pencil, pen and eraser are OMR 5, OMR 10 and OMR I respectively. In the discussion with divisional sales managers, it was informed that product pencil is oversold. They proposed the following: • If the price is increased by 10%, even then it finds a ready market. • Price of pen can be reduced by 5% and eraser by 10%. By incorporating these changes, the sales will be as follows: Product UAE India Pencil (+30%)(+40%)(+20%)| |-10%) (+30%) -10%) Raiser +10%)(+20%)(+10%) You are required to prepare the budget for the current year as well as budget for next year. Oman Pen

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hi, I would like to see the formula on the below solution of Budget for the current year be calculated through proportionate method. Product UAE India Oman Pencil 400,000 120,000 280,000 Pen 320,000 260,000 320,000 Eraser 160,000 180,000 160,000 Question is attached.
Styles Abuhatim LLC has given the following particulars. You are required to prepare a cash budget for the three months ending 31st December 2019 Months Sales Materials Wages ( OMR) Over heads (OMR) (OMR) (OMR) August September October 20000 10200 3800 1900 21000 10000 3800 2100 23000 9800 4000 2300 November 25000 10000 4200 2400 December 30000 10800 4500 2500 Credit terms are 1.. Sales /Debtors 10% sales are on Cash, 50% of the credit sales are collected in next month and the balance in the following month 2. Creditors- materials 2 months Wages 1 month -1 month Overheads 3. Cash balance on 1st October is expected to be Ro.8000 4. A machinery will be installed in August at a cost of RO.100000, the monthly instalment of RO.5000 is payable from October onwards 5. Dividend at 10% on preference share capital RO.300,000 will be paid on 1* December 2019 6. Advance to be received for the sale of vehicles RO.20000in December 7. Income tax to be received in December RO.5000
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