Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 22, Problem E22.37E
Using sensitivity analysis
Learning Objective 7
1. Op. Inc. at 1,700 units $306,000
Rucker Company prepared the following
| RUCKER COMPANY Budgeted Income Statement For the Year Ended December 31, 2019 |
|
| Unit Sales | 1,300 |
| Sales Revenue ($400 per unit) | $520,000 |
| Cost of Goods Sold (45% of sales) | 234,000 |
| Gross Profit | 286,000 |
| Selling and Administrative Expenses (10% of sales) | 52,000 |
| Operating Income | $ 234,000 |
Requirements
1 Prepare a budgeted income statement with columns for 700 units, 1,300 units, and 1,700 units sold.
2. How might managers use this type of budgeted income statement?
3. How might spreadsheet software such as Excel assist in this type of analysis?
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Given the following information, prepare an annual income statement budget for the Great Student Corporation as of 12/31/2018.
1. Sales: 1000 Units; Price $1,000 per Unit
2. Cost of Goods Sold (COGS): 60% of Sales
3. Wages: 15 Employees; Average Cost per Employee $15000
4. SGA Expenses: 12% of Sales
5. Depreciation: Straight Line $4000 per year
6. Interest Expense: 1% of Sales
What was the company's budgeted gross profit?
O A. $403,000
O B. $400,000
O C. $41,000
O D. $359,000
BUS 203: INTRODUCTION TO COST AND MANAGEMENT ACCOUNTING PROJECT: CASH BUDGETING ASSOCIATE DEGREE YEAR 2: SEMESTER 1 (2020/21)Ronstadt Limited’s budget for the four months from January to April includes the following data:1. MonthSalesMaterialsWagesOverheads
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Following are the budgeted income statements for the second quarter of 2019 for SeaTech Inc.:
April
$238,000
May
$289,000
June
Sales
$323,000
Cost of goods sold*
Gross profit
163,200
193,800
214, 200
$ 74,800
$ 95, 200
$108,800
Operating expenses"
Operating income
37,400
42,500
45,900
$ 37,400
$ 52,700
$ 62,900
Includes all product costs (i.e., direct materials, direct labor, and manufacturing overhead).
I Includes all period costs (i.e., selling, general, and administrative expenses).
The company expects about 30% of sales to be cash transactions. Of sales on account, 60% are expected to be collected
in the first month after the sale is made, and 40% are expected to be collected in the second month after sale.
Depreciation, insurance, and property taxes represent $20,400 of the estimated monthly cost of goods sold and $13,600
of the estimated monthly operating expenses. The annual insurance premium is paid in January, and the annual property
taxes are paid in August. Of the remainder…
Chapter 22 Solutions
Horngren's Accounting (12th Edition)
Ch. 22 - Prob. 1QCCh. 22 - A company prepares a five-year budget. This budget...Ch. 22 - Which of the following is the cornerstone of the...Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - The budgeted income statement is part of which...Ch. 22 - Prob. 9QCCh. 22 - Suppose Mallcentral sells 1,000 hardcover books...
Ch. 22 - Suppose Mallcentral sells 1,000 hardcover books...Ch. 22 - The budgeted balance sheet is part of which...Ch. 22 - Information technology has made it easier for...Ch. 22 - Prob. 1RQCh. 22 - Prob. 2RQCh. 22 - How is benchmarking beneficial?Ch. 22 - What is budgetary slack? Why might managers try to...Ch. 22 - Explain the difference between strategic and...Ch. 22 - Explain the difference between static and flexible...Ch. 22 - What is a master budget?Ch. 22 - In a manufacturing company, what are the three...Ch. 22 - Why is the sales budget considered the cornerstone...Ch. 22 - Prob. 10RQCh. 22 - What is the formula used to determine the amount...Ch. 22 - What are the two types of manufacturing overhead?...Ch. 22 - How is the predetermined overhead allocation rate...Ch. 22 - What is the capital expenditures budget?Ch. 22 - What are the three sections of the cash budget?Ch. 22 - Prob. 16RQCh. 22 - How does the master budget for a merchandising...Ch. 22 - Prob. 18RQCh. 22 - Prob. 19RQCh. 22 - Prob. 20RQCh. 22 - Budgeting benefits Learning Objective 1 List the...Ch. 22 - S22-2 Budgeting types
Learning Objective...Ch. 22 - Prob. S22.3SECh. 22 - S22-4 Preparing an operating budget—production...Ch. 22 - Prob. S22.5SECh. 22 - Prob. S22.6SECh. 22 - Prob. S22.7SECh. 22 - Prob. S22.8SECh. 22 - Prob. S22.9SECh. 22 - Prob. S22.10SECh. 22 - Prob. S22.11SECh. 22 - S22-12 Understanding the components of the master...Ch. 22 - S22-13 Preparing an operating budget—sales...Ch. 22 - Prob. S22.14SECh. 22 - Prob. S22.15SECh. 22 - Prob. S22.16SECh. 22 - Prob. S22.17SECh. 22 - Prob. S22.18SECh. 22 - Prob. S22.19SECh. 22 - Prob. S22.20SECh. 22 - Prob. E22.21ECh. 22 - Prob. E22.22ECh. 22 - Prob. E22.23ECh. 22 - Preparing an operating budget—direct materials,...Ch. 22 - E22-25 Preparing an operating budget—cost of goods...Ch. 22 - Prob. E22.26ECh. 22 - Preparing a financial budget—schedule of cash...Ch. 22 - Prob. E22.28ECh. 22 - E22-29 Preparing the financial budget-cash...Ch. 22 - Preparing the financial budget—budgeted balance...Ch. 22 - Prob. E22.31ECh. 22 - Prob. E22.32ECh. 22 - Prob. E22.33ECh. 22 - Prob. E22.34ECh. 22 - E22-35 Preparing a financial budget—cash...Ch. 22 - Prob. E22.36ECh. 22 - Using sensitivity analysis Learning Objective 7 1....Ch. 22 - Preparing an operating budget—sales, production,...Ch. 22 - Prob. P22.39APGACh. 22 - Preparing a financial budgetbudgeted income...Ch. 22 - Completing a comprehensive budgeting...Ch. 22 - Prob. P22.42APGACh. 22 - Prob. P22.43APGACh. 22 - P22-44A Preparing a financial budget—budgeted...Ch. 22 - Prob. P22.45APGACh. 22 - Prob. P22.46APGACh. 22 - Prob. P22.47BPGBCh. 22 - Prob. P22.48BPGBCh. 22 - Prob. P22.49BPGBCh. 22 - Prob. P22.50BPGBCh. 22 - Prob. P22.51BPGBCh. 22 - Prob. P22.52BPGBCh. 22 - Prob. P22.53BPGBCh. 22 - Preparing a comprehensive budgeting...Ch. 22 - Prob. P22.55BPGBCh. 22 - Using Excel for to prepare an operating budget...Ch. 22 - Prob. P22.57CPCh. 22 - Prob. 22.1TIATCCh. 22 - Prob. 22.1DCCh. 22 - Prob. 22.1EICh. 22 - Prob. 22.1FC
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