Rrylt Tta 0 Oqi R Prrptg Tn Ofbg Hp Tg Nhlthe Budger Commia

Question

Rrylt Tta 0 Oqi R Prrptg Tn Oftbg Hp Tg Nhlthe Budger Commiae Rrylt Tta 0 Oqi R Prrptg Tn Oftbg Hp Tg Nhlthe Budger Commiae rrylt-ttA 0-oQI, r) Prrptg tn oF?tb|g h$p* tg nhl The budget committee of Clipboard Office Supply has assembled the following data. As the business manager, you need to prepare the budgeted income statements for May and June based on the given information. The sales for April are $50,000. You forecast growth rates of 2.0% in May and 2.4% in June. The Clipboard inventory average is $9,000 plus 25% of the sale. The budgeted inventory on April 30 is $13,000, and the budgeted inventory for July is $15,000. The budgeted sales amounts are averaged at $0, which appears to be a typo; likely, it refers to the inventory or sales figures. The budgeted cost of goods sold (COGS) equals 75% of sales, and the gross profit margin is 25%. The sales commissions are paid half in the month of sale and half in the following month. The inventory purchases are paid 25% in the month of purchase and 75% in the following month. Suppliers' sales are collected monthly, and credit sales amount to 75% cash, with 25% on credit. Prepare the budgeted income statements for May and June, rounding all dollar amounts to the nearest $10, with amounts ending in $0 or in numbers ending in $5 rounded to the nearest $10.

Dr. Jack HW Helper · Accepted Answer

Rrylt Tta 0 Oqi R Prrptg Tn Oftbg Hp Tg Nhlthe Budger Commiae Introduction The process of preparing budgeted income statements involves several important steps that reflect anticipated sales, costs, and expenses for specific future periods, in this case, May and June. Accurate budgeting helps managers make informed decisions regarding operations, inventory management, and cash flow planning. This paper provides a comprehensive approach to preparing the budgeted income statements for Clipboard Office Supply, incorporating sales growth estimations, cost calculations, and payment schedules as outlined in the provided data. Sales Forecasting The initial step in constructing the income statements is forecasting sales for May and June based on April's actual sales of $50,000. Given the forecasted monthly growth rates of 2.0% in May and 2.4% in June, sales for each month can be projected using the formula: - May sales: $50,000 × (1 + 0.02) = $51,000 - June sales: $51,000 × (1 + 0.024) = $52,224, rounded to the nearest $10, which results in $52,220. These projections provide the foundation for subsequent calculation of costs and expenses. Cost of Goods Sold and Gross Profit With the sales figures established, the cost of goods sold (COGS) can be computed at 75% of sales for each month: May COGS: $51,000 × 75% = $38,250 June COGS: $52,220 × 75% ≈ $39,165, rounded to $39,170 Gross profit is then determined as sales minus COGS: May gross profit: $51,000 - $38,250 = $12,750 June gross profit: $52,220 - $39,170 = $13,050 The gross profit margin aligns at 25%, confirming the consistency of these calculations. Sales Commissions Sales commissions are paid half in the month of sale and half the following month, at a rate of 25% of sales value for each month: May commission: 50% of $51,000 × 25% = $6,375 June commission: 50% of $52,220 × 25% = $6,555 The total commissions paid in each month include the current month’s commission plus half of the previous month’s, adjusted for the tim

Rrylt Tta 0 Oqi R Prrptg Tn Ofbg Hp Tg Nhlthe Budger Commia

Rrylt Tta 0 Oqi R Prrptg Tn Oftbg Hp Tg Nhlthe Budger Commiae

Paper For Above instruction

Introduction

Sales Forecasting

Cost of Goods Sold and Gross Profit

Sales Commissions

Inventory and Purchases

Cash Collections and Payments

Estimated Net Income and Cash Position

Conclusion

References