User Account

All Pages

Prepare a budgeted income statement

Assignment Help Accounting Basics
Reference no: EM132008229

Question - This is for a cost accounting study guide for the final. I have one question I am not sure on... Please help

Bob's Sales reports 2011 year-end information:

Sales (150,000 units) $450,000

Cost of Goods Sold $150,000

Gross Profit $300,000

Operating Expenses $100,000 (includes $25,000 of depreciation)

Net Income $200,000

Bob's Accounting staff is developing the 2012 budget. In 2012, the company expects to increase selling prices by 20% and as a result expects a decrease in sales volume of 10%. Cost of Goods Sold as a percentage of sales is expected to increase to 40%. Other than depreciation, all operating costs are variable.

Required: Prepare a budgeted income statement for 2012.

Reference no: EM132008229

Questions Cloud

What actions does vanguard do with mutual funds : What is a mutual fund? What actions does Vanguard do with mutual funds? Why are mutual funds Vanguard's bread and butter. You can look up vanguard's website.
What will the market price per share be after the dividend : Murphy's, Inc. has 31,800 shares of stock outstanding with a par value of $1.00 per share. The market value is $12.00 per share.
Both banks pay interest at same rate : How would you explain the difference in the answers to the foregoing two problems, given that both banks pay interest at the same rate? Be specific.
What did the engineer mean about the large overhead rate : What did the engineer mean about the large overhead rate being a disadvantage when placing bids and seeking new business
Prepare a budgeted income statement : Bob's Accounting staff is developing the 2012 budget. Cost of Goods Sold $150,000. Prepare a budgeted income statement for 2012
Calculate the tax equivalent yield in given conditions : Calculate the tax equivalent yield if your marginal tax rate is 28 percent. (Round your answer to 3 decimal places. (e.g., 32.161))
Compute both the price variance and quantity variance : Compute both the price variance and quantity variance relating to direct materials used in the manufacture of pillowcases in May
What is the component cost of debt : Mike Pub are trading at their par value of $,1000 and pay interest 1 times a year. If each interest payment is 11 what is the component cost of debt?
Determine a style of leadership that would be effective : Determine a style of leadership that would be effective in the Flint Michigan Water Crisis. Provide a rationale for your position.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd