Representatives of the various departments of Go Sports have assembled the following data. As the business...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Representatives of the various departments of Go Sports have assembled the following data. As the business manager, you must prepare the budgeted income statements for August and September 2009. a. Sales in July were $196,000. You forecast that monthly sales will increase 3% in August and 2% in September. b. Go Sports tries to maintain inventory of $50,000 plus 20% of sales budgeted for the following month. Monthly purchases average 60% of sales revenue in that same month. Actual inventory on July 31 is $90,000. Sales budgeted for October are $220,000. c. Monthly salaries amount to $15,000. Sales commissions equal 6% of sales for that month. Combine salaries and commissions into a single figure. d. Other monthly expenses are: Rent expense... Depreciation expense. Insurance expense... prepaid amount Income tax.. $13,000 paid as incurred $4,000 $1,000, expiration of 30% of operating income Prepare Go Sports' budgeted income statements for August and September. Show cost of goods sold computations. Round all amounts to the nearest $1,000. For example, budgeted August sales are $202,000 ($196,000 x 1.03) and September sales are $206,000 ($202,000 x 1.02). Representatives of the various departments of Go Sports have assembled the following data. As the business manager, you must prepare the budgeted income statements for August and September 2009. a. Sales in July were $196,000. You forecast that monthly sales will increase 3% in August and 2% in September. b. Go Sports tries to maintain inventory of $50,000 plus 20% of sales budgeted for the following month. Monthly purchases average 60% of sales revenue in that same month. Actual inventory on July 31 is $90,000. Sales budgeted for October are $220,000. c. Monthly salaries amount to $15,000. Sales commissions equal 6% of sales for that month. Combine salaries and commissions into a single figure. d. Other monthly expenses are: Rent expense... Depreciation expense. Insurance expense... prepaid amount Income tax.. $13,000 paid as incurred $4,000 $1,000, expiration of 30% of operating income Prepare Go Sports' budgeted income statements for August and September. Show cost of goods sold computations. Round all amounts to the nearest $1,000. For example, budgeted August sales are $202,000 ($196,000 x 1.03) and September sales are $206,000 ($202,000 x 1.02).
Expert Answer:
Answer rating: 100% (QA)
Heres the budgeted income statement for Go Sports for the months of August and September 2009 along ... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
Students also viewed these accounting questions
-
The budget committee of Binders Office Supply has assembled the following data. As the business manager, you must prepare the budgeted income statements for May and June. a. Sales in April were...
-
The budget committee of Chelsey Fashions, an upscale women's clothing retailer, has assembled the following data. As the business manager, you must prepare the budgeted income statements for May and...
-
The budget committee of Vinning Office Supply has assembled the following data. As the business manager, you must prepare the budgeted income statements for May and June. a. Sales in April were...
-
First Ownership orders merchandise from several suppliers from around the world. Each of the suppliers has different shipping or transportation terms. At the end of December, First Ownership had the...
-
a. Find the present values of the following cash flow streams. The appropriate interest rate is 8%. b. What is the value of each cash flow stream at a 0% interestrate? Cash Stream A Cash Stream B...
-
For her daughters education, Georgina Harcourt has invested an inheritance in a fund paying 5.2% compounded quarterly. If ordinary annuity payments of $178 per month are to be made out of the fund...
-
Introduced to the Deloitte & Touche: Integrating Arthur Andersen Integrative Case. The case questions focused on issues pertaining to the relevance and goals of organizational behaviour, managerial...
-
A global economist hired by Telecomp, the U.S.-based computer manufacturer in Problem S1-1, estimates that the probability that the economic and political climate overseas and in Mexico will decline...
-
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash Accounts receivable Inventory Building and equipment, net...
-
Mike Curtains, a Registered Tax Agent, attends to the tax affairs of Frodo West. In preparing Frodo's 2021/22 income tax return, the following occurred: Frodo attended a meeting with Mike in August...
-
Diamond Home, a company in the household products industry, had a ROE of 45% last year. What does this number tell Diamond's investors?
-
A payment of $2,300,000 is made on a long-term liability. Of this amount, $300,000 is payment for interest while the remaining $2,000,000 is repayment of principal. Calculate the impact of this...
-
Mrs. Smith opened a joint account several years ago as aJTWROS. Mr. Smith was involved in a severe car accident and didn'tsurvive. Upon receiving confirmation of Mr. Smith's death, what must bedone...
-
Why is it acceptable to record a positive result but not a negative result prior to the end of the minimum 24 hour incubation period? UGBOORY
-
Determine the OTB or Overbought situation for October given the following: Stock on hand, October 1 = $122,000 Stock on order = $16,200 Planned BOM stock for November 1 = $124,000 Planned sales for...
-
Another prerequisite of tax-exempt status is that the entity may not earn any "unrelated business income." What are two types of unrelated business income that hospitals traditionally are allowed to...
-
Estimate f f(x)g'(x) dx if f(x) = x and g(x) has the values given in the following table. (Note that one way to estimate the integral would be to assume that g(x) is a constant, or a linear function...
-
Refrigerant R-12 at 30C, 0.75 MPa enters a steady flow device and exits at 30C, 100 kPa. Assume the process is isothermal and reversible. Find the change in availability of the refrigerant.
-
Revising a time-driven activity-based cost system, adding products Refer to the Madison Dairy ice cream plant example described in this chapter. Required (a) Suppose that production-related computer...
-
When should an organization use stock options?
-
As a manager asked to benchmark another organizations mobile web experience provided to users, on what factors would you gather information? Why?
-
Let \(\left\{X_{n}ight\}_{n=1}^{\infty}\) be a sequence of random variables where \(X_{n}\) is an ExPo\(\operatorname{NENTIAL}\left(\theta+n^{-1}ight)\) random variable for all \(n \in \mathbb{N}\)...
-
Let \(\left\{X_{n}ight\}_{n=1}^{\infty}\) be a sequence of random variables such that for each \(n \in \mathbb{N}\), \(X_{n}\) has a \(\operatorname{GAmma}\left(\alpha_{n}, \beta_{n}ight)\)...
-
Let \(\left\{X_{n}ight\}_{n=1}^{\infty}\) be a sequence of random variables where for each \(n \in \mathbb{N}, X_{n}\) has an BERNoulli \(\left[\frac{1}{2}+(n+2)^{-1}ight]\) distribution, and let...
Study smarter with the SolutionInn App