Assume that the forecasted cost of goods sold is $800,000, budgeted selling and

Question

Assume that the forecasted cost of goods sold is $800,000, budgeted selling and administrative expenses are $320,000, planned capital expenditures are $320,000, and the tax rate is 40 percent. What is the forecasted net income if each unit will sell for $150 and the sales forecast is for 15,000 units to be sold? $678,000 $452,000 . $805,000 $483,000 A cash budget is an optional feature of a master budget. requires input from all parts of the organisation. takes the place of another budget. is prepared only at year end.

Explanation / Answer

26. a $678000

15000*150= 2250000

less selling and administrative expenses 320000

less cost of goods sold 800000 = 1130000

tax rate 1130000* 40/100 452000 = 678000

27 answer is

B) requires input from all part of organization

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