Anderson Labs performs a specialty lab test for local companies for $50 per test. For the upcoming quarter, Anderson Labs is projecting the following sales: The budgeted cost of performing each test is $24. Operating expenses are projected to be $57,000 in January, $52,000 in February, and $61,000 in March. Anderson Labs is subject to a corporate tax rate of 30%. Requirement Prepare a budgeted income statement for the first quarter, with a column for each month and for the quarter. January February March Number of lab tests .... 5,900 4,700 5,200 Prepare the budgeted income statement by first calculating the operating income, then calculate the net income. Anderson Labs Budgeted Income Statement For the Quarter Ended March 31 January February March Quarter Sales Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Income tax expense Net income
Anderson Labs performs a specialty lab test for local companies for $50 per test. For the upcoming quarter, Anderson Labs is projecting the following sales: The budgeted cost of performing each test is $24. Operating expenses are projected to be $57,000 in January, $52,000 in February, and $61,000 in March. Anderson Labs is subject to a corporate tax rate of 30%. Requirement Prepare a budgeted income statement for the first quarter, with a column for each month and for the quarter. January February March Number of lab tests .... 5,900 4,700 5,200 Prepare the budgeted income statement by first calculating the operating income, then calculate the net income. Anderson Labs Budgeted Income Statement For the Quarter Ended March 31 January February March Quarter Sales Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Income tax expense Net income
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 10CE: Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Anderson Labs performs a specialty lab test for local companies for $50 per test. For the upcoming quarter, Anderson
Labs is projecting the following sales:
The budgeted cost of performing each test is $24. Operating expenses are projected to be $57,000 in January,
$52,000 in February, and $61,000 in March. Anderson Labs is subject to a corporate tax rate of 30%.
Requirement
Prepare a budgeted income statement for the first quarter, with a column for each month and for the quarter.
January February
March
Number of lab tests
5,900
4,700
5,200
.....
Prepare the budgeted income statement by first calculating the operating income, then calculate the net income.
Anderson Labs
Budgeted Income Statement
For the Quarter Ended March 31
January
February
March
Quarter
Sales
Less: Cost of goods sold
Gross profit
Less: Operating expenses
Operating income
Less: Income tax expense
Net income
.....
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