1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vinil7 [7]
3 years ago
6

Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements

for the last four quarters follow:
First Quarter Second Quarter Third Quarter FourthQuarter Total
Sales Revenue $ 90,000 $ 100,000 $ 105,000 $ 130,000 $425,000
Cost of goods sold (54,000) (60,000) (63,000) (78,000) (255,000)
Gross profit 36,000 40,000 42,000 52,000 170,000
Selling &
Administrating
Expenses (8,500) 10,000 (10,500) (13,000) (42,000)
Net income $ 27,500 $ 30,000 $ 31,500 $ 39,000 $128,000
Historically, cost of goods sold is about 60 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 8 percent for each respective quarter above last year’s level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 5 percent.
Required:
1) Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada’s estimate.
2) Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks’ estimate.

Business
1 answer:
mestny [16]3 years ago
8 0

The equation and the way how to do it in a data editing program like excel is seen in the problem and the answers are in the answer.

You might be interested in
Western Company is preparing a cash budget for June. The company has $10,100 cash at the beginning of June and anticipates $31,9
Anna71 [15]

Answer:

Borrow $6,300.

Explanation:

The company has $10,100 cash at the beginning of June

and anticipates $31,900 in cash receipts

and $38,300 in cash disbursements during June.

This gives a positive balance of (10,100 + 31,900 - 38,300) $3,700 and

To maintain the $10,000 required balance, during June the company must:Borrow $6,300.

8 0
3 years ago
Read 2 more answers
This morning, DJ’s invested $238,000 to help fund a company expansion project planned for three years from now. How much additio
rusak2 [61]

Answer:

$3,842.78

Explanation:

We must determine the future value of the money invested and then calculate the difference between both return rates. We can use the future value formula: FV = present value x (1 + return rate)ⁿ

3.5% ⇒ FV = $238,000 x (1 + 3.5%)³ = $238,000 x 1.035³ = $263,874.85

4% ⇒ FV = $238,000 x (1 + 4%)³ = $238,000 x 1.04³ = $267,717.63

difference = $267,717.63 - 263,874.85 = $3,842.78

5 0
3 years ago
the process of using information to link customers, consumers, and the public to the marketer is referred to as _____.
Olegator [25]

Answer:

the process of using information to link customers, consumers, and the public to the marketer is referred to as marketing Research!!

go for it!!

8 0
2 years ago
Most audience members expect your presentation to include
Elan Coil [88]

Answer: Preview-view-review strategy.

Explanation: The preview-view-review strategy is used in many different learning environments. This process allows the presenter or teacher to preview the information that will be covered, go over the information being discussed and then review it as a conclusion at the end. By previewing the information, the audience is able to understand what topics will be covered, then learn about them in the view stage and have a summary of the information covered in the review.

6 0
3 years ago
All of the following are categories of data that marketing researchers typically collect except for which one? a. Fears b. Behav
swat32

Answer:

The correct answer is A

Explanation:

Market research is the research which is a scientific study and it is performed in order to collect the important market information, enable the business to make the right decisions.

The collection of the data in the marketing research is defined as the detailed as well as informative procedure, in which the planned search for the all the relevant data that is made by the researcher.

So, the categories which are used for the data that  marketing researchers usually collect are behavior, attitudes and intentions.

3 0
3 years ago
Other questions:
  • Siemens AG invests €80,000,000 to build a manufacturing plant to build wind turbines. The company predicts net cash flows of €16
    8·1 answer
  • When applying the lower of cost or market rule to inventory valuation, market generally means?
    6·1 answer
  • What steps can a nation take to achieve economic growth?
    11·2 answers
  • If Digipics were to begin selling the cameras it assembled directly to customers through a website operated by the company, this
    15·1 answer
  • A company checks written for $600 for rent expense cleared the bank correctly but the company accountant incorrectly recorded th
    10·1 answer
  • Traditional buyer-supplier relationships revolve around financial considerations. buyers and suppliers both try to get the best
    9·1 answer
  • Nathan’s Athletic Apparel has 2,000 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2017. Al
    15·1 answer
  • Which set of materials includes the fewest number of ingredients that are needed to make a lemon into an effective battery that
    15·1 answer
  • Emily spent her summer vacation in Buenos Aires, Argentina, where she got plastic surgery for a fraction of what it would cost i
    6·1 answer
  • "espedal" How do strategic leaders manage their firm’s resource portfolio effectively to exploit its core competencies and lever
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!