Answered: Q7- Downstairs Company has the…

Q7- Downstairs Company has the following sales budget for the last six months of 2010: July August September October $100,000 80,000 110,000 80,000 100,000 94,000 November December

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 13PB: Artic Camping Gears currently sells 35,000 units at $73 per unit. Its expenses are as follows:...

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Question

Contribution margin ratio
60%
70%
Required:
1. Prepare Income statement for the company.
2. Calculate break-even point in dollars.
Q5- Amber Manufacturing provided the following information for last
month:
Sales
Variable costs
Fixed costs
$20,000
6,000
9,000
Operating income $5,000
If sales double next month, what is the projected operating income?
Q6- Benjamin Company has the following data:
Budgeted Sales
$108,000
132,000
144,000
120,000
Month
January
February
March
April
Cost of goods sold average 60% of sales. The inventory at December 31
was $19,440. Desired ending inventory levels are 20% of next month's
sales at cost. What is the desired ending inventory value at February
28?
Q7- Downstairs Company has the following sales budget for the last
six months of 2010:
July
August
September
October
$100,000
80,000
110,000
80,000
100,000
94,000
November
December

Historically, the cash collection of sales has been as follows:
65% of sales collected in month of sale
25% of sales collected in month following sale
8% of sales collected in second month following sale
2% of sales uncollectible
What are the expected cash collections of sales in October?
Q8- Sebring Company has the following data:
Month
Budgeted Sales
$40,000
44,000
50,000
52,000
48,000
April
May
June
July
August
The cost of goods sold percentage is 70% of sales and the desired ending
inventory level is 25% of next month's sales at cost.
beginning inventory on May 1.
was the

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