In the Excel spreadsheet keep the problem data (budget assumptions) separate in one section of the spreadsheet. This is to be able to link the budget formulas sothatthemasterbudgetsdonothavetoberecreatedwhenthedatais manipulated.

Then link the data using Excel formulas to develop the following budgets andschedulesforthethreemonths(April,May,June)andintotalforQuarter2(Q2). Youmayhaveto keepanextracolumnforMarchandJulyas| didinclass.

1. Schedule 1: Sales budgetfor (April, May, June) and Total for Q2. Also showhowmuchiscashsalesandhowmucharecreditsales

Schedule 2: Merchandise Purchase Budget(April, May, June) and Total forQ2

Schedule 3: Selling and Administration Budget (April, May, June) and TotalforQ2

4. BudgetedIncomeStatementintotalforthequarter(TotalforQ2) 5. SensitivityAnalysis

5(a)ChangetheGrossMarginfrom25% to30%. PrinttheBudgeted Income Statementin totalforthequarter(TotalforQ2)

5(b) Change the gross margin from 25% to 35% and increase sales commission from 12% to 15% and otherexpenses from 6% to 10%. PrinttheBudgeted IncomeStatementin totalforthequarter(TotalforQ2)

Printouts to be submitted for grading

1. For questions 1 through 4, printout Schedule1, Schedule 2 Schedule 3 and the quarterly income statement.

2. For5(a)PrinttheBudgetedIncomeStatementintotalforthequarter(Totalfor Q2)

3. For5(b)PrinttheBudgetedIncomeStatementintotalforthequarter(Totalfor Q2)