Master Budget for Smashing Frame Company Essay

COMPONENT PERCENTAGES INCOME STATEMENT (each item is expressed as a percentage of net sales revenue)

* On Income Statement for December 31, 2011, the number of Revenues, Cost of Goods Sold, Expenses and Net Income will go

consequences of the loan for Marie in 2008? If necessary, assume a prescribed interest rate of 4%.

* If we surmise that the company’s specialist’s predictions of 4% on market growth along with renewing current and or adding more customer contracts then the profits should be as follows:

Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales

The prices range from as low as one hundred dollars up to nearly three hundred dollars.

o In summary this analysis shows the percent of every dollar in sales that is

Perhaps you have seen one of The Real Cost commercials on television. A girl peels her skin off to pay for cigarettes, a bunch of monsters leap into a boys mouth, and kids come up with any reason not to smoke. This along with several other commercials created by the Food and Drug Administration are played to warn others of the harmful side effects of tobacco. A science class watches as the teacher dissects a hideous creature while listing off several chemicals. The commercial ends with “If cigarettes looked as dangerous as they are, you’d run like hell.” This is the commercial that will be examined in the duration of the paper, what makes it so powerful? And are people listening?

For current assets for each of the following three years, we are projecting the same percentage of 32% of sales. Assets that are constantly flowing in and out of a organization in the normal course of its business as cash converted into goods and then back into cash show small growth if any, in periods of time. The assets that are expected to last or be in use for less than one year will also show the small growth if any due their usage life expectancy. Because of these facts of our current assets, we will continue to use the projected 32% of sales as in previous years. Because this projection served correctly in previous years, we will again use it for the next three years. This decision is based on past accurateness and the consistency of the company.

This assumption is reasonable as the business has been shown to have different rates of sales in different months.

3. Refer to the monthly sales forecasts given in the first Table. Assume that these amounts are realized and that the firm’s customers pay exactly as predicted.

1. Sales forecast – (at $ 30 retail price with the assumption of $15 whole sale price)

For Coracle to improve sales in the second half of the year and come closer to meeting the first

the manager may use a simple analysis of past operating data to obtain a percentage of sales

revenue in 1998. A company may expect to receive more than 50 percent of all