How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Neo Your Own Question
Neo
Neo, Tutor
Category: Homework
Satisfied Customers: 12101
Experience:  BS Accounting
4224391
Type Your Homework Question Here...
Neo is online now
A new question is answered every 9 seconds

Prepare Budgeted Financial Statements The following information

This answer was rated:

Prepare Budgeted Financial Statements

The following information is available for year 1 for Dancer Components:



Revenues (300,000 units). . . . . . . . . . $5,700,000

Manufacturing costs

Materials . . . . . . . . . . . . . . . . . . . . . $ 336,000

Variable cash costs . . . . . . . . . . . . . 284,800

Fixed cash costs . . . . . . . . . . . . . . . 655,200

Depreciation (fi xed) . . . . . . . . . . . . . 1,998,000

Marketing and administrative costs

Marketing (variable, cash) . . . . . . . . 844,800

Marketing depreciation . . . . . . . . . . 299,200

Administrative (fi xed, cash) . . . . . . . 1,018,400

Administrative depreciation . . . . . . . 149,600

Total costs . . . . . . . . . . . . . . . . . . $5,586,000

Operating profits . . . . . . . . . . . . . . . . . $ 114,000



All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to increase by 18 percent, but prices are expected to fall by 5 percent. Material costs per unit are expected to decrease by 8 percent. Other unit variable manufacturing costs are expected to decrease by 2 percent per unit. Fixed manufacturing costs are expected to increase by 5 percent.

Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 10 percent. Inventories are kept at zero. Dancer operates on a cash basis.

Required

Prepare a budgeted income statement for year 2.
THIS ANSWER IS LOCKED!

You need to spend $3 to view this post. Add Funds to your account and buy credits.
Neo and other Homework Specialists are ready to help you

Related Homework Questions