Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern
ID: 2470512 • Letter: R
Question
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:
1. Determine budgeted sales revenue for each quarter.
2. Determine budgeted cost of merchandise purchased for each quarter.
3. Determine budgeted cost of good sold for each quarter.
4. Determine selling and administrative expenses for each quarter.
5. Complete the budgeted income statement for each quarter.
RED CANYAN T-SHIRT COMPANY
BUDGETED INCOME STATEMENT
Different options to pick for the left columns:
- Budgeted Contribution Margin
- Budgeted Cost of Goods Sold
- Budgeted Interest Expense
- Budgeted Sales Returns and Allowances
- Budgeted Sales Revenue
- Budgeted Selling and Administrative Expenses
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:
Explanation / Answer
Budgeted sale revenue q1 q2 q3 Sales revenue 1250000 2000000 1000000 Merchandise purchased q1 q2 q3 sale units 50000 80000 40000 Add: closing inventory 28000 14000 28000 total required 78000 94000 68000 less : opening inve -17500 -28000 -14000 purchases 60500 66000 54000 cost $10 $10 $10 total cost 605000 660000 540000 Budgeted cost of goods sold q1 q2 q3 COGS 500000 800000 400000 Selling and administrative expense Q1 Q2 Q3 Expenses 100,000 100,000 100,000 percent of sale 187500 300000 150000 total cost 287,500 400,000 250,000 Budgeted income statement q1 q2 q3 Sale revenue 1250000 2000000 1000000 less :COGS -500000 -800000 -400000 Gross margin 750000 1200000 600000 less:Expenses Selling and adm -287,500 -400,000 -540000 Net income 462500 800000 60000
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