ACTUAL $ 750,000 Big Boats, Inc. makes laury speed boats for water sking Actual results and...

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ACTUAL $ 750,000 Big Boats, Inc. makes laury speed boats for water sking Actual results and the static budge Sales commissions are computed at 5% of gross sales The expected ROI for this subsidiary is 26% The budget was based on 100 boats being sold. Actual sales for the year was 80 boats The showroom is 10,000 for the year are presented below Management has a policy of reviewing in more detail any overall budget variances in excess of 30% of the amount is $10,000 or greater 10 Net Sales Revenue St $1,000,000 11 Cost of goods 160,000 500,000 12 G 300,000 52.0% 500,000 500% 13 A 14 Sales Conn $ 15 Adminstrative Salaries and Wages 37,500 130,000 S 50,000 100,000 16 General Exp 17 Bart 1,000 30,000 Other expe 17,000 11,500 19 Deprecation 20 TSG&A 21 Opening Inme 22 21,500 13,300 231000 214,000 161000 21.7% 380% The year The year Cash Accounts Receivable 300,000 $ 120000 350,000 $ 140,000 $ 200,000 $ 140.000 100,000 $ M 130,000 340000 200,000 5 12,000 450,000 340,000 32 Compute the feable budges Based on etual units stand the post percentage used for the statu C D Artual Flex Variance FA Fire Budget Sales Variance N St Budget Overs IN VARN Review? (Y/N) 36 Sen Athe 75000 1000000 37 of 200 500,000 38 ft 90000 300,000 39 Opening Expernes 40 CALLIONE 120000 42 Exemes 43 31,000 44 repenses 17000 50.000 300000 0000 1,300 45 Depreciation 21500 22.300 217000 214000 47 e income 216000 ENTERANSWERS Ready Gross Profe 390,000 Operating Expenses Sales Commissions 37,500 Administrative Salaries and Wages Benefits 120,000 2General Expenses 3 Rent 31,000 Other expenses 17,000 5 Depreciation 21,500 227,000 6 Total Selling, General, and Administrative Expe 7 Operating Income 163,000 02. Compute the retum on investment using average total assets. 1. Average total assets 62 b. Retum on investment. round to the nearest whole dollar 34 553. Compute residual income. round to the nearest tenth percent 53. Did the company meet, exceed, or fall short of expectations? round to the nearest whole dollar round to the nearest whole dollar round to the nearest whole dollar 57 4. (a) What is the expectation for average sale price per the static budget? 58 (b) What was the actual average sales price? 50 605(a) What is the expectation for sales per square foot per the static budget) 61 (b) What was the actual sales per square 62 foot? 63(a) What is the expected gross profe margin per the static budget) 64 What was the actual gross profit margin 66 7. (a) What is the expected operating profit margin per the static budget) What was the actual operating profit margin Assume the company also uses invertory tumover as a The formula for the inventory tumover ratio is cost of goods sold divided by average inventory 69 70 71 (4) What is the xpected inventory turnover per the static budget? 72 What was the actual inventory turmover? 73 8.1 Also compute the inventory tumover in days 74 The formulas 365 days divided by inventory turnover ratio 75 (a) What is the expected inventory tumover, in days, per the static budget? 76 (b) What was the actual inventory tumover, in days? 77 round to the nearest whole dollar und to the nearest whole dollar Found to the nearest tenth percent round to the nearest tenth percent und to the nearest tenth percent und to the nearest tenth percent round to the nearest hundred round to the nearest hundred round to the nearest day round to the nearest day 78 What do you conclude from all of this information? 79 60 81 82 500,000 50,000 100,000 30,000 11.500 22,500 214,000 28,000 ACTUAL $ 750,000 Big Boats, Inc. makes laury speed boats for water sking Actual results and the static budge Sales commissions are computed at 5% of gross sales The expected ROI for this subsidiary is 26% The budget was based on 100 boats being sold. Actual sales for the year was 80 boats The showroom is 10,000 for the year are presented below Management has a policy of reviewing in more detail any overall budget variances in excess of 30% of the amount is $10,000 or greater 10 Net Sales Revenue St $1,000,000 11 Cost of goods 160,000 500,000 12 G 300,000 52.0% 500,000 500% 13 A 14 Sales Conn $ 15 Adminstrative Salaries and Wages 37,500 130,000 S 50,000 100,000 16 General Exp 17 Bart 1,000 30,000 Other expe 17,000 11,500 19 Deprecation 20 TSG&A 21 Opening Inme 22 21,500 13,300 231000 214,000 161000 21.7% 380% The year The year Cash Accounts Receivable 300,000 $ 120000 350,000 $ 140,000 $ 200,000 $ 140.000 100,000 $ M 130,000 340000 200,000 5 12,000 450,000 340,000 32 Compute the feable budges Based on etual units stand the post percentage used for the statu C D Artual Flex Variance FA Fire Budget Sales Variance N St Budget Overs IN VARN Review? (Y/N) 36 Sen Athe 75000 1000000 37 of 200 500,000 38 ft 90000 300,000 39 Opening Expernes 40 CALLIONE 120000 42 Exemes 43 31,000 44 repenses 17000 50.000 300000 0000 1,300 45 Depreciation 21500 22.300 217000 214000 47 e income 216000 ENTERANSWERS Ready Gross Profe 390,000 Operating Expenses Sales Commissions 37,500 Administrative Salaries and Wages Benefits 120,000 2General Expenses 3 Rent 31,000 Other expenses 17,000 5 Depreciation 21,500 227,000 6 Total Selling, General, and Administrative Expe 7 Operating Income 163,000 02. Compute the retum on investment using average total assets. 1. Average total assets 62 b. Retum on investment. round to the nearest whole dollar 34 553. Compute residual income. round to the nearest tenth percent 53. Did the company meet, exceed, or fall short of expectations? round to the nearest whole dollar round to the nearest whole dollar round to the nearest whole dollar 57 4. (a) What is the expectation for average sale price per the static budget? 58 (b) What was the actual average sales price? 50 605(a) What is the expectation for sales per square foot per the static budget) 61 (b) What was the actual sales per square 62 foot? 63(a) What is the expected gross profe margin per the static budget) 64 What was the actual gross profit margin 66 7. (a) What is the expected operating profit margin per the static budget) What was the actual operating profit margin Assume the company also uses invertory tumover as a The formula for the inventory tumover ratio is cost of goods sold divided by average inventory 69 70 71 (4) What is the xpected inventory turnover per the static budget? 72 What was the actual inventory turmover? 73 8.1 Also compute the inventory tumover in days 74 The formulas 365 days divided by inventory turnover ratio 75 (a) What is the expected inventory tumover, in days, per the static budget? 76 (b) What was the actual inventory tumover, in days? 77 round to the nearest whole dollar und to the nearest whole dollar Found to the nearest tenth percent round to the nearest tenth percent und to the nearest tenth percent und to the nearest tenth percent round to the nearest hundred round to the nearest hundred round to the nearest day round to the nearest day 78 What do you conclude from all of this information? 79 60 81 82 500,000 50,000 100,000 30,000 11.500 22,500 214,000 28,000

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