(Solution) 13-36 Prepare Budgeted Financial Statements The Following Information Is Available For Year 1for Dancer Components: | Snapessays.com


(Solution) 13-36 Prepare Budgeted Financial Statements The following information is available for year 1for Dancer Components:


13-36

 

Prepare Budgeted Financial Statements

 

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

 

 

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

 

Manufacturing costs

 

Material $ 336,000

 

Variable cash costs 284,800

 

Fixed cash costs 655,200

 

Depreciation (fixed) 1,998,000

 

Marketing and administrative costs

 

Marketing (variable, cash) 844,800

 

Marketing depreciation 299,200

 

Administrative (fixed, cash) 1,018,400

 

Administrative depreciation 149,600

 

 

All depreciation charges are fixed and are expected to remain the same for year2. 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 2.13-36

 

Prepare Budgeted Financial Statements

 

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

 

Revenues (300,000units)

 

$5,700,000

 

Manufacturing costs

 

Material

 

$

 

336,000

 

Variable cash costs

 

284,800

 

Fixed cash costs

 

655,200

 

Depreciation (fixed)

 

1,998,000

 

Marketing and administrative costs

 

Marketing (variable, cash)

 

844,800

 

Marketing depreciation

 

299,200

 

Administrative (fixed, cash)

 

1,018,400

 

Administrative depreciation

 

149,600

 

All depreciation charges are fixed and are expected to remain the same for year2. 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.

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: May 23, 2022

Solution~00021147602308.zip (25.37 KB)


This attachment is locked

Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

May 23, 2022

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • ■ As a reference for in-depth understanding of the subject.
  • ■ As a source of ideas / reasoning for your own research (if properly referenced)
  • ■ For editing and paraphrasing.

This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

Get Free Price Quote