Bramble Company has completed all of its operating budgets. The sales budget for the year shows 48,000 units and total sales of $2,160,000. The total cost of producing one unit is $25. Selling and administrative expenses are expected to be $288,000. Interest is estimated to be $9,600. Income taxes are estimated to be $192,000. Prepare a budgeted multiple-step income statement for the year ending December 31, 2022. DRAMDLE COMPANY

Bramble Company has completed all of its operating budgets. The sales budget for the year shows 48,000 units and total sales of $2,160,000. The total cost of producing one unit is $25. Selling and administrative expenses are expected to be $288,000. Interest is estimated to be $9,600. Income taxes are estimated to be $192,000. Prepare a budgeted multiple-step income statement for the year ending December 31, 2022. DRAMDLE COMPANY

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 18E: Carmichael Corporation is in the process of preparing next years budget. The pro forma income...

See similar textbooks

Similar questions

Roman Inc. has the following totals from its operating budgets: Prepare a budgeted income statement for the year ended December 31, 2016, assuming that income from operations is taxed at a rate of 30%.
The following data were obtained from the financial records of Sonicbrush, Inc., for March: Sales are expected to increase each month by 15%. Prepare a budgeted income statement.
Carmichael Corporation is in the process of preparing next years budget. The pro forma income statement for the current year is as follows: Required: 1. What is the break-even sales revenue (rounded to the nearest dollar) for Carmichael Corporation for the current year? 2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a 60,000 increase in fixed expenses. What is the break-even point in dollars for next year? (CMA adapted)
CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2019 and 2020: Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depreciation charges are 36,000 a month. Miscellaneous expenses are 2,700 a month. Income tax payments of 63,000 are due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2019. b. Prepare monthly estimates of the required financing or excess fundsthat is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 1/30 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal, and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.
Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.
North Company has completed all of its operating budgets. The sales budget for the year shows 50,000 units and total sales of $2,250,000. The total unit cost of making one unit of sales is $25. Selling and administrative expenses are expected to be $300,000. Interest is estimated to be $10,000. Income taxes are estimated to be $200,000. Prepare a budgeted multiple-step income statement for the year ending December 31, 2017
Oriole Company is preparing its budgeted income statement for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 1,040,000 units. Quarterly sales are 19%, 26%, 27%, and 28%, respectively. The unit selling price is expected to be $41 for the first three quarters and $46 beginning in the fourth quarter. Sales in the first quarter of 2023 are expected to be 10% higher than the budgeted sales for the first quarter of 2022. Production Management desires to maintain the ending finished goods inventories at 20% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $11 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2023 are 468,000 pounds. Oriole budgets 0.4 hours of direct labor per unit, labor costs…
Farooq Company has accumulated the following budget data for the year 2020. Sales: 60,000 units, unit selling price $80. Cost of one unit of finished goods: Direct materials 3 pounds at $5 per pound, direct labor 3 hours at $6 per hour, and manufacturing overhead $7 per direct labor hour. Selling and administrative expenses: $750,000. Income taxes: 30% of income before income taxes. Instructions (a) Prepare a schedule showing the computation of cost of goods sold for 2021.
Reso tubes was preparing a budgeted income statement for 2019 and has accumulated the following information. Predicted sales for the year are P730,000 and cost of goods sold is 40% of sales. The expected selling expenses are 81,000 and the expected general and administrative expenses are 90,000, which includes P23,000 of depreciation. Income tax rate is 30%. Compute budgeted net income for the year 2019?
Whispering Winds Landscaping Company is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare cash receipts and cash payments schedules. To that end the following information has been collected.Clients usually pay 60% of their fee in the month that service is provided, 30% the month after, and 10% the second month after receiving service.Actual service revenue for 2021 and expected service revenues for 2022 are: November 2021, $130,000; December 2021, $100,000; January 2022, $144,000; February 2022, $161,000; March 2022, $170,000.Purchases of landscaping supplies are paid 30% in the month of purchase and 70% the following month. Actual purchases for 2021 and expected purchases for 2022 are: December 2021, $21,000; January 2022, $19,600; February 2022, $22,400; March 2022, $27,500. Determine the account receivable balances at March 31, 2022.
Pargo Company is preparing its budgeted income statement for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 1,800,000 units. Quarterly sales are 20%, 24%, 277%, and 29%, respectively. The sales price is expected to be $41 per unit for the first three quarters and 546 per unit beginning in the fourth quarter. Saies in the first quarter of 2021 are expected to be 12% higher than the budgeted sales for the first quarter of 2020. Production. Management desires to maintain the ending finished goods inventories at 199%6 of the next quarter's budgeted sales volume. Direct materials Each unit requires 2 pounds of raw materials at a cost of 59 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2021 are 497,000 pounds. Pargo budgets 0.2 hours of direct labor per unit,…
Windsor Company is preparing its master budget for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales: Sales for the year are expected to total 1,200,000 units. Quarterly sales are 25%, 25%, 25%, and 25%, respectively. The sales price is expected to be $41 per unit for the first three quarters and $44 per unit beginning in the fourth quarter Sales in the first Quarter of 2023 are expected to be 10% higher than the budgeted sales for the first quarter of 2022 Production: Management desires to maintain the ending finished goods inventories at 20% of the next quarter's budgeted sales volume. Direct materials Each unit requires 2 kg of raw materials at a cost of $10 per kilogram. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for the first quarter of 2023 are 410.000 kg. Prepare the Sales Budget by quarter for 2022.