Drop Down Options:

Requirement 2:

flexible or static

only in a single or various

Requirement 3:

cost-effective OR time-consuming

financial statement analysis OR sensitivity/"what if" analysis

annual report OR master budget

net income OR the annual report

maintain the same course of action OR react quickly and make changes

i Data Table 1,200 Woodruff Company Budgeted Income Statement For the Year Ended December 31, 2019 Unit sales Sales Revenue ($600 per unit) Cost of Goods Sold (60% of sales) Gross Profit Selling and Administrative Expenses (15% of sales) $ Operating Income 720,000 432,000 288,000 108,000 180,000 Woodruff Company prepared the following budgeted income statement for 2019: Click the icon to view the budgeted income statement.) Read the requirements. Requirement 1. Prepare a budgeted income statement with columns for 1,000 units, 1,200 units, and 1,500 units sold. 1,500 Woodruff Company Budgeted Income Statement For the Year Ended December 31, 2019 Unit sales 1,000 1,200 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income Requirement 2. How might managers use this type of budgeted income statement? budget. It allows The budgeted income statement prepared in Requirement 1 is a Woodruff's managers to plan for sales level(s). Requirement 3. How might spreadsheet software such as Excel assist in this type of analysis? Technology, such as Excel spreadhseet software, makes it more to conduct Y and prepare a company's V If managers have a better understanding of how changes in sales volume and costs are likely to affect V they can if key assumptions turn out to be wrong