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s Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow: Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income The 144 First Quarter $ 174,000 121,800 52,200 17,400 Second Quarter $ 204,000 Third Quarter $ 214,000 149,800 64,200 21,400 $ 34,800 $ 40,800 $ 42,800 $ 52,800 $171,200 142,800 61,200 20,400 Sales revenue Cost of goods sold Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fourth Quarter $ 264,000 184,800 79,200 26,400 Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 10 percent Complete this question by entering your answers in the tabs below. Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Total $856,000 599,200 256,800 85,600 Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. Fourth Quarter First Quarter Second Quarter Third Quarter Total Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sa revenue. Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only percent. Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. Fourth Quarter Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income First Quarter Second Quarter Third Quarter Required B > Total Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Second Quarter Fourth Quarter Sales revenue Cost of goods sold Gross profit Selling & sdministrative expenses Net income First Quarter Required A Third Quarter Total Walton Company, which sells electric razors, had $390,000 of cost of goods sold during the month of June. The company projects a 10 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $21,000, and the desired ending inventory balance for July is $22,000. Walton pays cash to settle 70 percent of its purchases on account during the month of purchase and pays the remaining 30 percent in the month following the purchase. The accounts payable balance as of June 30 was $28,000. Required a. Determine the amount of purchases budgeted for July b. Determine the amount of cash payments budgeted for inventory purchases in July a Budgeted purchases b. Cash payments s Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow: Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income The 144 First Quarter $ 174,000 121,800 52,200 17,400 Second Quarter $ 204,000 Third Quarter $ 214,000 149,800 64,200 21,400 $ 34,800 $ 40,800 $ 42,800 $ 52,800 $171,200 142,800 61,200 20,400 Sales revenue Cost of goods sold Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fourth Quarter $ 264,000 184,800 79,200 26,400 Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 10 percent Complete this question by entering your answers in the tabs below. Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Total $856,000 599,200 256,800 85,600 Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. Fourth Quarter First Quarter Second Quarter Third Quarter Total Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sa revenue. Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only percent. Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. Fourth Quarter Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income First Quarter Second Quarter Third Quarter Required B > Total Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Second Quarter Fourth Quarter Sales revenue Cost of goods sold Gross profit Selling & sdministrative expenses Net income First Quarter Required A Third Quarter Total Walton Company, which sells electric razors, had $390,000 of cost of goods sold during the month of June. The company projects a 10 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $21,000, and the desired ending inventory balance for July is $22,000. Walton pays cash to settle 70 percent of its purchases on account during the month of purchase and pays the remaining 30 percent in the month following the purchase. The accounts payable balance as of June 30 was $28,000. Required a. Determine the amount of purchases budgeted for July b. Determine the amount of cash payments budgeted for inventory purchases in July a Budgeted purchases b. Cash payments s Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow: Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income The 144 First Quarter $ 174,000 121,800 52,200 17,400 Second Quarter $ 204,000 Third Quarter $ 214,000 149,800 64,200 21,400 $ 34,800 $ 40,800 $ 42,800 $ 52,800 $171,200 142,800 61,200 20,400 Sales revenue Cost of goods sold Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fourth Quarter $ 264,000 184,800 79,200 26,400 Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 10 percent Complete this question by entering your answers in the tabs below. Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Total $856,000 599,200 256,800 85,600 Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. Fourth Quarter First Quarter Second Quarter Third Quarter Total Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sa revenue. Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only percent. Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. Fourth Quarter Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income First Quarter Second Quarter Third Quarter Required B > Total Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Second Quarter Fourth Quarter Sales revenue Cost of goods sold Gross profit Selling & sdministrative expenses Net income First Quarter Required A Third Quarter Total Walton Company, which sells electric razors, had $390,000 of cost of goods sold during the month of June. The company projects a 10 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $21,000, and the desired ending inventory balance for July is $22,000. Walton pays cash to settle 70 percent of its purchases on account during the month of purchase and pays the remaining 30 percent in the month following the purchase. The accounts payable balance as of June 30 was $28,000. Required a. Determine the amount of purchases budgeted for July b. Determine the amount of cash payments budgeted for inventory purchases in July a Budgeted purchases b. Cash payments s Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow: Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income The 144 First Quarter $ 174,000 121,800 52,200 17,400 Second Quarter $ 204,000 Third Quarter $ 214,000 149,800 64,200 21,400 $ 34,800 $ 40,800 $ 42,800 $ 52,800 $171,200 142,800 61,200 20,400 Sales revenue Cost of goods sold Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fourth Quarter $ 264,000 184,800 79,200 26,400 Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 10 percent Complete this question by entering your answers in the tabs below. Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Total $856,000 599,200 256,800 85,600 Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. Fourth Quarter First Quarter Second Quarter Third Quarter Total Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sa revenue. Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only percent. Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. Fourth Quarter Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income First Quarter Second Quarter Third Quarter Required B > Total Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Second Quarter Fourth Quarter Sales revenue Cost of goods sold Gross profit Selling & sdministrative expenses Net income First Quarter Required A Third Quarter Total Walton Company, which sells electric razors, had $390,000 of cost of goods sold during the month of June. The company projects a 10 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $21,000, and the desired ending inventory balance for July is $22,000. Walton pays cash to settle 70 percent of its purchases on account during the month of purchase and pays the remaining 30 percent in the month following the purchase. The accounts payable balance as of June 30 was $28,000. Required a. Determine the amount of purchases budgeted for July b. Determine the amount of cash payments budgeted for inventory purchases in July a Budgeted purchases b. Cash payments s Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow: Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income The 144 First Quarter $ 174,000 121,800 52,200 17,400 Second Quarter $ 204,000 Third Quarter $ 214,000 149,800 64,200 21,400 $ 34,800 $ 40,800 $ 42,800 $ 52,800 $171,200 142,800 61,200 20,400 Sales revenue Cost of goods sold Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fourth Quarter $ 264,000 184,800 79,200 26,400 Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 10 percent Complete this question by entering your answers in the tabs below. Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Total $856,000 599,200 256,800 85,600 Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. Fourth Quarter First Quarter Second Quarter Third Quarter Total Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sa revenue. Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only percent. Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. Fourth Quarter Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income First Quarter Second Quarter Third Quarter Required B > Total Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Second Quarter Fourth Quarter Sales revenue Cost of goods sold Gross profit Selling & sdministrative expenses Net income First Quarter Required A Third Quarter Total Walton Company, which sells electric razors, had $390,000 of cost of goods sold during the month of June. The company projects a 10 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $21,000, and the desired ending inventory balance for July is $22,000. Walton pays cash to settle 70 percent of its purchases on account during the month of purchase and pays the remaining 30 percent in the month following the purchase. The accounts payable balance as of June 30 was $28,000. Required a. Determine the amount of purchases budgeted for July b. Determine the amount of cash payments budgeted for inventory purchases in July a Budgeted purchases b. Cash payments s Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow: Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income The 144 First Quarter $ 174,000 121,800 52,200 17,400 Second Quarter $ 204,000 Third Quarter $ 214,000 149,800 64,200 21,400 $ 34,800 $ 40,800 $ 42,800 $ 52,800 $171,200 142,800 61,200 20,400 Sales revenue Cost of goods sold Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fourth Quarter $ 264,000 184,800 79,200 26,400 Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 10 percent Complete this question by entering your answers in the tabs below. Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Total $856,000 599,200 256,800 85,600 Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. Fourth Quarter First Quarter Second Quarter Third Quarter Total Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sa revenue. Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only percent. Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. Fourth Quarter Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income First Quarter Second Quarter Third Quarter Required B > Total Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Second Quarter Fourth Quarter Sales revenue Cost of goods sold Gross profit Selling & sdministrative expenses Net income First Quarter Required A Third Quarter Total Walton Company, which sells electric razors, had $390,000 of cost of goods sold during the month of June. The company projects a 10 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $21,000, and the desired ending inventory balance for July is $22,000. Walton pays cash to settle 70 percent of its purchases on account during the month of purchase and pays the remaining 30 percent in the month following the purchase. The accounts payable balance as of June 30 was $28,000. Required a. Determine the amount of purchases budgeted for July b. Determine the amount of cash payments budgeted for inventory purchases in July a Budgeted purchases b. Cash payments
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Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
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