PROJECT 1

Prepare 'Budgeted Statement of Financial Performance' (also called 'a Budgeted Income Statement') for Fraser & Company for July, August and September including the total for quarter ended 30 September.

List the expense accounts under the areas of Marketing, Administration and Financial Expenses

Sales budget: July $50 000

August $60 000

September $90 000

All sales are on credit and 20% of customers are expected to receive a

5%prompt payment discount.2% of all customers' accounts are expected to be

uncollectible.

Sales price is a mark-up of 100% on the cost of goods sold.

Interest expense is expected to be $1,000 per month.

Rental income is $2 000 per month.

The owner intends to withdraw $5 000 per month for personal expenses.

Marketing expenses have a fixed cost element of $5000 per month, plus a

variable cost element which is 10% of sales.

General and administrative expenses are $9000 per month