Please HELP!!

pdf 1 1 2 100% + 10 Background: As the owner of a local CPA firm, you have been hired to help a new small business, Thunderduck Construction. The company has been in business for one year and reports financial information on a quarterly basis. The company uses the accrual-basis method of accounting and follows US GAAP. . Budget Assignment - Part 1 (75 points) Create a quarterly budgeted income statement for Year 2 based on prior year data and discussions with management, using the excel template provided. Prepare a quarterly cash budget (including a schedule of cash receipts and disburseme for Year 2. Use the separate tab created in the excel template provided. . Use the following assumptions for the budgeted income statement in Year 2 based on histo results and discussions with management: New construction and Calculate the average for Year 1. This will be the amount of revenue fo Remodel revenue and Q4 of Year 2 Q2 and Q3 of Year 2 will be 25% higher than the Year 1 average due to high demand for homes in the spring. Cost of goods sold 65% of total revenue in Q1 and Q3 in Year 2 -60% of total revenue in Q2 and Q4 in Year 2 Salaries expense - Mixed expense with a fixed portion of $5.600 per quarter for Q1, Q2, Q3 The variable portion is $5 per project Fixed portion will be 25% higher in Q4 due to year-end bonuses. Variabl will be the same as $5 per project. 20 projects expected in 01 and Q2 of Year 2 25 projects expected in Q3 and Q4 of Year 2 Marketing expense - Equal to the same quarter in Year 1. Legal expense Calculate the average for Year 1. This will be the amount for every quart in Year 2 Business development $3,520 in Q1 and Q2 of Year 2 expense - Due to an increase in projects, increase to $4,100 in Q3 and 04 of Year Depreciation expense - $750 in Q1 and Q2 of Year 2 Will increase to $900 in O3 and Q4 of Year 2 due to new equipment. Office supplies expense Calculate the average for Year 1. This will be the amount for Q1 and Q4 Year 2 - Q2 and Q3 of Year 2 will be 20% higher with expected increased busines Miscellaneous expense 4% of COGS each quarter of Year 2 CIUN WIU 29 Wrap Text General BIU. A - 5 S | Merge & Center $ %8-98 Clipboard Font Conditional Format as Ceo Formatting Table Styles Styles Alignment Number 5 AutoSave OH 9 H17 f F G H A B c D E 2 B Year 1 Actual Provided: 01 Year 1 02 Year 1 03 Year 104 Year 1 9 New construction revenue 35,605 42,790 48,326 43,098 10 Remodel revenue 24,568 29,482 35,378 31,133 11 Total revenue 60,173 72,272 83,704 74,231 12 Less: Cost of goods sold 39,112 46,977 13 Gross profit 53,571 47,508 21,061 25,295 30,133 26,723 14 Less: Selling and administrative expenses 15 Salaries expense 3,400 3,650 3,900 4.400 16 Marketing expense 1,568 2.250 2,646 1.624 17 Legal expense 3,009 3,614 4,185 3,712 18 Business development expense 2,600 2,600 3.520 3,520 19 Depreciation expense 600 700 750 750 20 Office supplies expense 447 870 1.242 793 21 Miscellaneous expense 1,956 2,349 2,679 2.375 22 Total selling and admin expenses 13,579 16,032 18,922 17,174 23 Net operating income 7,481 9,263 11,212 9,549 24 + 24 25 26 Thunderduck Construction 27 Income Statement 28 Budget Quarterly for Year 2 29 30 Year 2 Budget: 01 Year 2 92 Year2 03 Year 204 Year 2 31 New construction revenue 42,455 212,275 212,275 42,455 32 Remodel revenue 33 Total revenue 34 Less: Cost of goods sold 35 Gross profit 36 Less: Selling and administrative expenses 37 Salaries expense 38 Marketing expense 39 Legal expense 40 Business development expense 41 Depreciation expense 42 Office supplies expense 43 Miscellaneous expense 44 Total selling and admin expenses 45 Net operating income 46 47 AR Budgeted Income Statement Cash Budget Variance Analysis Stand 57 pdf 1 1 2 100% + 10 Background: As the owner of a local CPA firm, you have been hired to help a new small business, Thunderduck Construction. The company has been in business for one year and reports financial information on a quarterly basis. The company uses the accrual-basis method of accounting and follows US GAAP. . Budget Assignment - Part 1 (75 points) Create a quarterly budgeted income statement for Year 2 based on prior year data and discussions with management, using the excel template provided. Prepare a quarterly cash budget (including a schedule of cash receipts and disburseme for Year 2. Use the separate tab created in the excel template provided. . Use the following assumptions for the budgeted income statement in Year 2 based on histo results and discussions with management: New construction and Calculate the average for Year 1. This will be the amount of revenue fo Remodel revenue and Q4 of Year 2 Q2 and Q3 of Year 2 will be 25% higher than the Year 1 average due to high demand for homes in the spring. Cost of goods sold 65% of total revenue in Q1 and Q3 in Year 2 -60% of total revenue in Q2 and Q4 in Year 2 Salaries expense - Mixed expense with a fixed portion of $5.600 per quarter for Q1, Q2, Q3 The variable portion is $5 per project Fixed portion will be 25% higher in Q4 due to year-end bonuses. Variabl will be the same as $5 per project. 20 projects expected in 01 and Q2 of Year 2 25 projects expected in Q3 and Q4 of Year 2 Marketing expense - Equal to the same quarter in Year 1. Legal expense Calculate the average for Year 1. This will be the amount for every quart in Year 2 Business development $3,520 in Q1 and Q2 of Year 2 expense - Due to an increase in projects, increase to $4,100 in Q3 and 04 of Year Depreciation expense - $750 in Q1 and Q2 of Year 2 Will increase to $900 in O3 and Q4 of Year 2 due to new equipment. Office supplies expense Calculate the average for Year 1. This will be the amount for Q1 and Q4 Year 2 - Q2 and Q3 of Year 2 will be 20% higher with expected increased busines Miscellaneous expense 4% of COGS each quarter of Year 2 CIUN WIU 29 Wrap Text General BIU. A - 5 S | Merge & Center $ %8-98 Clipboard Font Conditional Format as Ceo Formatting Table Styles Styles Alignment Number 5 AutoSave OH 9 H17 f F G H A B c D E 2 B Year 1 Actual Provided: 01 Year 1 02 Year 1 03 Year 104 Year 1 9 New construction revenue 35,605 42,790 48,326 43,098 10 Remodel revenue 24,568 29,482 35,378 31,133 11 Total revenue 60,173 72,272 83,704 74,231 12 Less: Cost of goods sold 39,112 46,977 13 Gross profit 53,571 47,508 21,061 25,295 30,133 26,723 14 Less: Selling and administrative expenses 15 Salaries expense 3,400 3,650 3,900 4.400 16 Marketing expense 1,568 2.250 2,646 1.624 17 Legal expense 3,009 3,614 4,185 3,712 18 Business development expense 2,600 2,600 3.520 3,520 19 Depreciation expense 600 700 750 750 20 Office supplies expense 447 870 1.242 793 21 Miscellaneous expense 1,956 2,349 2,679 2.375 22 Total selling and admin expenses 13,579 16,032 18,922 17,174 23 Net operating income 7,481 9,263 11,212 9,549 24 + 24 25 26 Thunderduck Construction 27 Income Statement 28 Budget Quarterly for Year 2 29 30 Year 2 Budget: 01 Year 2 92 Year2 03 Year 204 Year 2 31 New construction revenue 42,455 212,275 212,275 42,455 32 Remodel revenue 33 Total revenue 34 Less: Cost of goods sold 35 Gross profit 36 Less: Selling and administrative expenses 37 Salaries expense 38 Marketing expense 39 Legal expense 40 Business development expense 41 Depreciation expense 42 Office supplies expense 43 Miscellaneous expense 44 Total selling and admin expenses 45 Net operating income 46 47 AR Budgeted Income Statement Cash Budget Variance Analysis Stand 57