Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 14, Problem 4E
Exercise 7-4A Preparing sales budgets with different assumptions
Axon Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because economic conditions vary in different regions of the country. The growth expectations per quarter are 4 percent for Cummings Division, 2 percent for Springfield Division, and 5 percent for Douglas Division.
Required
a. Complete the sales budget by filling in the missing amounts. (Round figures to the nearest dollar.)
b. Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements.
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Exercise 7-48 Preparing sales budgets with different assumptions
Plano International Company has three subsidiaries, Seymour Trading Company, Archer Medical Supplies Company,
and Milsap Shipping Company. Because the subsidiaries operate in different industries, Plano's corporate budget for
the coming year must reflect the different growth potentials of the individual industries. The growth expectations per
quarter for the subsidiaries are 4 percent for Seymour, 1 percent for Archer, and 3 percent for Milsap.
Subsidiary Current Quarter Sales First Quarter Second Quarter Third Quarter Fourth Quarter
Seymour
$100,000
Archer
120.000
Milsap
160.000
?
?
?
?
Required
a. Complete the sales budget by filling in the missing amounts. (Round the figures to the nearest dollar)
b. Determine the amount of sales revenue Plano will report on the quarterly pro forme income statements.
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Jordan Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because
economic conditions vary in different regions of the country. The growth expectations per quarter are 6 percent for Cummings
Division, 4 percent for Springfield Division, and 8 percent for Douglas Division.
Required
a. Complete the sales budget by filling in the missing amounts.
b. Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Complete the sales budget by filling in the missing amounts. (Round your final answers to the nearest whole dollar amount.)
Second
Fourth
Division
First Quarter
Third Quarter
Quarter
Quarter
Cummings Division
$
190,000
Springfield Division
310,000
Douglas Division
240,000
Exercise 6 (Selling and Administrative Budget)
The budgeted unit sales of Helene Company for the upcoming fiscal year are
provided below:
1stquarter 2ndquarter 3rd quarter 4th quarter
Budgeted unit sales..... 12,000 14,000 11,000 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 4thQuarter. Finally, property
taxes of P6,000 will be paid in the 3rd Quarter.
Required:
Prepare the company's selling and administrative expense budget for the
upcoming fiscal year.
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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