Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Question
Chapter 14, Problem 15E
a)
To determine
Prepare the pro forma income statement including quarterly budgets as per Person A’s estimate
Given information:
Cost of goods sold is 60% of sales revenue
Selling and administration expenses are 10% of sales revenue
Expected sales by Person F is 8% and by Person B is 5%
b)
To determine
Prepare the pro forma income statement including quarterly budgets as per Person B’s estimate
Given information:
Cost of goods sold is 60% of sales revenue
Selling and administration expenses are 10% of sales revenue
Expected sales by Person F is 8% and by Person B is 5%
c)
To determine
The reason for the different estimates by two officers
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Students have asked these similar questions
Question 1
The marketing department of HASF Corporations has submitted the following sales forecast for the upcoming fiscal year (all sales are on account)
Q1
Q2
Q3
Q4
total
Budgeted units sales
?
10% increase
10 % decrease
16,335
62,685
Budget selling price per unit
18
18
18
?
18
budgeted sales revenue
?
297,000
?
294,030
?
Other information
Each quarter ending finished goods inventory is 20% of next month units sold.
Next year first quarter beginning inventory is 3,000.
Each finished units require 3 grams of raw material that cost Rs 3 per unit.
Management desired to end each quarter with an inventory of raw material equal to 15% of the current quarter production needs
Beginning inventory of raw material in first quarter 3,000 grams
FIND UNIT SALES of Q1
Answer format should be like : 10000 donot USE COMMA's or Currency or UNITs. Answer should be plain…
Question 3
Relevant data from Picta Company’s operating budgets are presented below. The company’s financial year ends on 30 June.
Quarter 1
Quarter 2
Sales
$248,470
$251,539
Direct material purchases
120,295
128,832
Direct labor
76,553
74,289
Manufacturing overhead
26,000
24,400
Selling and administration expenses
33,500
33,500
Depreciation included in selling and administration expenses
2,000
2,500
Collection from customers
230,524
220,116
Cash payments for purchases
114,345
118,346
Additional data:
Equipment was sold in July for $8,000 and $4,500 in November. Dividends of $5,500 were paid in August. The beginning cash balance was $80,395 and a required minimum cash balance per quarter is $60,000.
The company has a 15% open line of credit for $70 000 with their bank.…
Exercise 6 (Selling and Administrative Budget)
The budgeted unit sales of Helene Company for the upcoming fiscal year are
provided below:
3rd quarter
11,000
4th
quarter
1s' quarter
12,000
2nd quarter
14,000
Budgeted unit sales
10,000
The company's variable selling and administrative expenses per unit are P2.75.
Fixed selling and administrative expenses include advertising expenses of
P12,000 per quarter, executive salaries of P40,000 per quarter, and
depreciation of P16,000 per quarter. In addition, the company will make
insurance payments of P6,000 in the 2nd Quarter and P6,000 in the 4th Quarter.
Finally, property taxes of P6,000 will be paid in the 3rd Quarter.
Chapter 14 Solutions
Survey Of Accounting
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - 3.What are the three levels of planning? Explain...Ch. 14 - 4.What is the primary factor that distinguishes...Ch. 14 - 5.What is the advantage of using a perpetual...Ch. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - 8. Ken Shilov, manager of the marketing...Ch. 14 - Prob. 9QCh. 14 - 10.What is the normal starting point in developing...
Ch. 14 - 11. How does the level of inventory affect the...Ch. 14 - 12.What are the components of the cash budget?...Ch. 14 - 13.The primary reason for preparing a cash budget...Ch. 14 - 14.What information does the pro forma income...Ch. 14 - 15.How does the pro forma statement of cash flows...Ch. 14 - Exercise 7-1A Budget responsibility Teresa...Ch. 14 - Exercise 7-2A Preparing a sales budget Parliament...Ch. 14 - Prob. 3ECh. 14 - Exercise 7-4A Preparing sales budgets with...Ch. 14 - Exercise 7-5A Determining cash receipts from...Ch. 14 - Exercise 7-6A Using judgment in making a sales...Ch. 14 - Exercise 7-7A Preparing an inventory purchases...Ch. 14 - Exercise 7-8A Preparing a schedule of cash...Ch. 14 - Exercise 7-9A Determining the amount of expected...Ch. 14 - Exercise 7-10A Preparing inventory purchases...Ch. 14 - Exercise 7-11A Preparing a schedule of cash...Ch. 14 - Prob. 12ECh. 14 - Exercise 7-13A Preparing a cash budget The...Ch. 14 - Exercise 7-14A Determining amount to borrow and...Ch. 14 - Prob. 15ECh. 14 - Problem 7-16A Behavioral impact of budgeting...Ch. 14 - Prob. 17PCh. 14 - Problem 7-18A Preparing an inventory purchases...Ch. 14 - Prob. 19PCh. 14 - Problem 7-21A Preparing a cash budget Fayette...Ch. 14 - Prob. 21PCh. 14 - Problem 7-22A Preparing budgets with multiple...Ch. 14 - Problem 7-23A Preparing a master budget for retail...Ch. 14 - ATC 7-1 Business Applications Case Preparing and...Ch. 14 - ATC7-2 Group Assignment Master budget and pro...Ch. 14 - ATC 7-4 Writing Assignment Continuous budgeting...Ch. 14 - Ethical Dilemma Bad budget system or unethical...
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