The following information pertains to the April 2023 operating budget for Blu Corporation, a retailer: Budgeted sales are $430,000 for April Cost of goods sold average 55% of sales Merchandise purchases total $299,000 in April Marketing costs are $15,000 each month Distribution costs are $32, 200 each month Administrative costs are $26, 200 each month Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. a) What is the budgeted gross margin in April? Budgeted Sales $Answer Cost of goods sold $Answer Budgeted gross margin $Answer b) What is the budgeted amount for non - manufacturing costs in April? Total non - manufacturing costs: $Answer c) What is the budgeted net income in April? Budgeted net income: $Answer

The following information pertains to the April 2023 operating budget for Blu Corporation, a retailer: Budgeted sales are $430,000 for April Cost of goods sold average 55% of sales Merchandise purchases total $299,000 in April Marketing costs are $15,000 each month Distribution costs are $32, 200 each month Administrative costs are $26, 200 each month Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. a) What is the budgeted gross margin in April? Budgeted Sales $Answer Cost of goods sold $Answer Budgeted gross margin $Answer b) What is the budgeted amount for non - manufacturing costs in April? Total non - manufacturing costs: $Answer c) What is the budgeted net income in April? Budgeted net income: $Answer

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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LB Hardware is a company in the retail industry. Assume it is the end of the year and they are preparing their budgets for the upcoming year. The following information is available: Expected sales are: January 280 000€; February 220 000€. The company's Cost of Sales is 30% of sales. The company's purchasing policy is to buy 80% in the month of sale and 20% in the month before sale. Variable selling and administrative expenses are budgeted at 10% of sales except for a provision of bad debts which came to 2 000€ in January. Also bad debts expected to be actually written off during January come to 1 000€. Fixed selling and administrative expenses are budgeted at 30 000€ every month which excludes depreciation of 5 000€. The company is paying a 15 000€ instalment per month in order to pay back a long-term loan. Of this amount 5 000€ represents interest payment and 10 000€ payment on the principal amount. The company's tax rate is 20% and tax is paid at the end of the year. Required:…
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Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $460,000 for November, $440,000 for December, and $430,000 for January. Collections are expected to be 45% in the month of sale and 55% in the month following the sale. The cost of goods sold is 80% of sales. The company would like to maintain ending merchandise inventories equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $25,200. Monthly depreciation is $16,200. Ignore taxes. Balance SheetOctober 31 Assets Cash $ 20,000 Accounts receivable 70,000 Merchandise inventory 153,000 Property, plant and equipment, net of $572,000 accumulated depreciation 1,094,000 Total assets $ 1,337,000 Liabilities and Stockholders' Equity Accounts payable $ 254,000 Common stock 820,000 Retained earnings…
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Timpco, a retailer, makes both cash and credit sales (i.e., sales on open account). Information regarding budgeted sales for the last quarter of the year is as follows: October November December Cash sales $ 80,000 $ 71,000 $ 83,000 Credit sales 80,000 85,200 91,300 Total $ 160,000 $ 156,200 $ 174,300 Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectible, 60% are collected in the month of sale; the remaining 40% are collected in the month following the month of sale. Customers are granted a 1.5% discount for payment within 10 days of billing. Approximately 75% of collectible credit sales take advantage of the cash discount. Inventory purchases each month are 100% of the cost of the following month’s projected sales. (The gross profit rate for Timpco is approximately 30%.) All merchandise purchases are made on credit, with 20% paid in the month of purchase and the remainder paid in the following month. No cash discounts…
Shakira Inc. sells drones. The company is in the process of preparing its Selling and Administrative Expense Budget for the year. The following budget data are available: Variable Cost Per Drone Sold Monthly Fixed Cost Sales commissions $0.40 $ 12,000 Shipping 3.20 Advertising 0.25 Executive salaries 60,000 Depreciation on office equipment 4,000 Expenses are paid in the month incurred. If the company has budgeted to sell 20,000 drones in July, how much is the total budgeted selling and administrative expenses for July?
Mary's Baskets Company expects to manufacture and sell 23,000 baskets in 2019 for $6 each. There are 3,000 baskets in beginning finished goods inventory with target ending inventory of 3,000 baskets. The company keeps no work- in-process inventory. What amount of sales revenue will be reported on the 2019 budgeted income statement? O A. $120,000 B. $156,000 OC. $102,000 OD. $138,000 Calculator Next
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The following information applies to questions 25 and 26 The sales budget for Fred Limited contains the following information: October November December Units 300 550 700 $ (thousands) 75,000 165,000 210,000 Sales are all on credit, with 30% collected in the month of sale and 70% in the following month. Finished goods inventory at the end of each month should be 58% of the following month's sales requirements. Prepare a finished goods inventory budget and use it to answer Following Calculate the closing finished goods inventory, in units, for October. Calculate the required production, in units, for October.
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a) $18,400 b) $101,600 c) $19,600 d) $16,800