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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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6 0
3 years ago
Tyrone has three options on how to spend his saturday afternoon: to go out with friends, watch a movie, or wash his car. tyrone'
Ilia_Sergeevich [38]

If Tyrone has three options on how to spend his saturday afternoon: to go out with friends, watch a movie, or wash his car. tyrone's opportunity cost of washing his car would be: the value of going out with friends OR watching a movie

<h3>What is opportunity cost?</h3>

Opportunity cost can be defined as an way in which alternative is forgone because another alternative was chosen.

Based on the given scenario the opportunity cost will be the value of going out with friends or the value of watching a movie.

Therefore the correct option is D.

The complete question is:

Tyrone has three options on how to spend his Saturday afternoon: go out with friends, watch a movie, or wash his car. Tyrone's opportunity cost of washing his car would be:

a) the value of going out with friends.

b) the value of watching a movie.

c) the value of going out with friends AND watching a movie.

d) the value of going out with friends OR watching a movie.

Learn more about Opportunity cost here:brainly.com/question/481029

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6 0
1 year ago
Assume that the demand curve for a certain good is a vertical line. This vertical demand curve illustrates the idea that:
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Answer:

e.people will not change the quantity of the good when the price of the good is changed.

Explanation:

When the demand curve for a good is vertical, it indicates that the demand for the good is perfectly inelastic ; a change in price has no effect on the quantity demanded.

Goods with perfect inelasticity usually have no or little close subsituites.

I hope my answer helps you

6 0
2 years ago
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