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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.

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Answer:

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Explanation:

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The key principle of supply chain management can be best summed up as collaboration between multiple firms. These multiple firms include a company that is saddled with the responsibility of manufacturing, a wholesaler, and a retailer who typically sells the products to the customers or consumers.

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andrew-mc [135]

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mixer [17]

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<h3>What is Real estate?</h3>

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1 year ago
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Feliz [49]

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