Galaxy is an exotic car dealership. Sales n he urth quarter of last year were $4
ID: 2585179 • Letter: G
Question
Galaxy is an exotic car dealership. Sales n he urth quarter of last year were $4.500 000 Suppose s Sher e o ce ro e ts that its cument years quarte y s es increase by % in quarter by another 7% in arter ran theres in quarter 3, and by another 3 in quarter 4. Management expects cost o goods sold be 55% o revenues every quar er while opera ng expenses should be 2 % o revenues during each of the rs to quarters, 5%of revenues during the third quarter, and 30% during the fourth quarter. Requirement 1. Prepare a budgeted income statement for each of the four quarters and for the entire year. Prepare the first portion of the budgeted income statement through gross profit, then complete the statement. (Round interim and final calculations to the nearest whole dollar.) Galaxy Budgeted Income Statement For the Upcoming Year Quarter 2 Quarter 3 Quarter 4 Year Sales Cost of goods sold Gross profit Operating expenses Net incomeExplanation / Answer
GALAXY BUDGETD INCOME STATEMENT For the Upcoming Year Quarter1 Quarter2 Quarter3 Quarter4 year Sales $ 45,90,000.00 $ 49,11,300.00 $ 52,05,978.00 $ 53,62,157 $ 2,00,69,435 $4,500,000*1.02 $4590000*1.07 $4911300*1.06 $5205978*1.03 cost of goods sold $ 25,24,500.00 $ 27,01,215.00 $ 28,63,288 $ 29,49,187 $ 1,10,38,189 4590000*0.55 4911300*0.55 5205978*0.55 5362157*0.55 Gross Profit $ 20,65,500.00 $ 22,10,085.00 $ 23,42,690 $ 24,12,971 $ 90,31,246 Operating Expenses $ 9,18,000.00 $ 9,82,260.00 $ 13,01,495 $ 16,08,647 $ 48,10,402 4590000*0.20 4911300*0.20 5205978*0.25 5362157*0.30 net income $ 11,47,500.00 $ 12,27,825.00 $ 10,41,196 $ 8,04,324 $ 42,20,844
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