Solution-Prepare budgeted income statement for the year

Prepare budgeted income statement for the year ended dec

Reference no: EM132561603

SAMSONITE Leather Manufactring has budgeted sales for 2020-Dec. to be Rs. 15 million. The trend of last 5 years has shown an average growth of 5.5% in firms turnover. Hence, firms estimate the same level of growth by the end of 2020. Based on the historical data, following estimations has also been made :

Cost of goods sold (budgeted) is to be 65% of sales.

Operating expenses (budgeted) are to be 15% of sales.

Question (a) Prepare Budgeted Income Statement for the year ended Dec. 31, 2020.

Question (b) Calculate the budgeted Gross Profit Margin.

Question (c) Do you think if relying on 5 years data is quite reasonable for deal with future market forecasts. Comment.

Reference no: EM132561603

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Prepare budgeted income statement for the year ended dec

Reference no: EM132561603

Reference no: EM132561603

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