Reference no: EM132779269

Problem 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