Home Work Assignment 3 (30 points)-Excel Budget Assignment

Review Problem: Completing a Master Budget for the 2nd Quarter, Pages 355- 359 (Chapter 9: Budgeting)) of your Text book: Managerial Accounting by Garrison, Libby and Webb, Eleventh Canadian Edition.

Required:

Create the following components of the Master Budget for ROCKET COMPANY in a Microsoft Excel Spreadsheet for the 2nd Quarter. To get full marks all Excel Cells have to be properly linked using Formulas and proper statement format has to be followed.

Prepare ONLY the following budgets. You do not have to do the collection schedules, cash budget or the budgeted balanced sheet.

Link the excel formulas so that question 5 can be answered without recreating the entire budget.

1. SALES BUDGET-Monthly and in total

2. MERCHANDISE PURCHASE BUDGET-monthly and in total

3. SELLING AND ADMINISTRATION BUDGET-monthly and in total

4. INCOME STATEMENT for the Quarter ended June 30th

5. What would be the operating income if the gross margin is reduced from 40% to

   35%? What is the ending merchandise inventory?