REQUIREDUse the information provided below to prepare the Pro-Forma Statement of Comprehensive Income for July andAugust 2021 (using separate monetary columns for each month).INFORMATIONThe budgeted Statement of Comprehensive Income of Ryobi Enterprises for the year ended 30 June 2021 is asfollows:Sales3 000 000Cost of sales(2 000 000)Gross profit1 000 000Rent income108 0001 108 000Operating expenses(720 000)Salaries360 000Advertising120 000Bad debts60 000DepreciationOther operating expensesOperating profitInterest expense30 000150 000388 000(38 000)Net profit350 000 Additional information1.Sales for the period 01 April to 30 June 2021 are budgeted at R240 000 per month. Sales for July 2021are expected to be 5% greater than the sales for June 2021. A decrease of 10% is expected duringAugust 2021 on the July 2021 sales.Cash sales account for 40% of the total sales, with the balance of the sales on credit. Five percent (5%)of the credit sales are expected to be irrecoverable and these are written off three months after the sale.2.3.The existing mark-up percentage on cost will be maintained during July and August 2021.The rental agreement makes provision for an increase of 12% each year, effective from 01 July.Salaries are expected to increase by 10% with effect from 01 August 2021.The amount spent on advertising each month is calculated as a percentage of sales. The percentagefor the period ended 30 June 2021 will be maintained in the next financial year.Depreciation for the year ended 30 June 2021 was calculated as a percentage on the cost price of theequipment, R200 000. New equipment with a cost price R60 000 will be purchased on 01 July 2021.Other operating expenses are spread evenly throughoutunchanged in the new financial year.Repayments towards the loan will result in interest expense dropping by 10% per month. Interestexpense for June 2021 is R3 000.4.5.6.7.8.year and are expected to remain9.

Name: REQUIREDUse the information provided below to prepare the Pro-Forma S
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: REQUIREDUse the information provided below to prepare the Pro-Forma Statement of Comprehensive Income for July andAugust 2021 (using separate monetary columns for each month).INFORMATIONThe budgeted Statement of Comprehensive Income of Ryobi Enterpr

Statement of Comprehensive Income is a part of financial statements in which the standard income and…

Answered: Use the information provided below to…

Business

Accounting

Use the information provided below to prepare the Pro-Forma Statement of Comprehensive Income for July and August 2021 (using separate monetary columns for each month). INFORMATION

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 18E: Carmichael Corporation is in the process of preparing next years budget. The pro forma income...

See similar textbooks

Similar questions

Roman Inc. has the following totals from its operating budgets: Prepare a budgeted income statement for the year ended December 31, 2016, assuming that income from operations is taxed at a rate of 30%.
Budgeted selling and administrative expenses for King Tire Co. In P7-2 for the year ended December 31, 2016, were as follows: Required: 1. Prepare a selling and administrative expense budget, in good form, for the year 2016. 2. Using the information above and the budgets prepared in P7-2, prepare a budgeted income statement for the year 2016, assuming an income tax rate of 40%.
Selling and administrative expense budget and budgeted income statement Budgeted selling and administrative expenses for Scottsdale Styles Inc. in P7-4 for the year ended December 31, 2016, were as follows: Required: 1. Prepare a selling and administrative expenses budget, in good form, for the year 2016. 2. Using the information above and the budgets prepared in P7-4, prepare a budgeted income statement for the year 2016, assuming an income tax rate of 30%.
Relevant data from the Poster Companys operating budgets are: Additional data: Capital assets were sold in January for $10,000 and $4,500 in May. Dividends of $4,500 were paid in February. The beginning cash balance was $60,359 and a required minimum cash balance is $59,000. Use this information to prepare a cash budget for the first two quarters of the year
Relevant data from the operating budget of The Framers are: Other data: Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2. Dividends of $500 will be paid in May The beginning cash balance was $50,000 and a required minimum cash balance is $10,000. Prepare a cash budget for the first two quarters of the year.
Classify each of the following actions as either being associated with the financial accounting information system (FS) or the cost management information system (CMS): a. Determining the total compensation of the CEO of a public company b. Issuing a quarterly earnings report c. Determining the unit product cost using TDABC d. Calculating the number of units that must be sold to break even e. Preparing a required report for the SEC f. Preparing a sales budget g. Using cost and revenue information to decide whether to keep, or drop, a product line h. Preparing an annual statement of financial position that conforms to generally accepted accounting principles (GAAP) i. Using cost and revenue information to decide whether to invest in a new production system or not j. Reducing costs by improving the overall quality of a product k. Using a debt-equity ratio and liquidity ratios from a balance sheet to assess the likelihood of bankruptcy l. Using a public companys financial statements to decide whether or not to buy its stock
Prepare a cost of goods sold budget for the Crest Hills Manufacturing Co. for the year ended December 31, 2016, from the following estimates. Inventories of production units: Direct materials purchased during the year, 854,000; beginning inventory of direct materials, 31,000; and ending inventory of direct materials, 26,000. Totals from other budgets included:
Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Mesa Publishing Co.: Factory output and sales for 20Y9 are expected to total 3,800 units of product, which are to be sold at 120 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of 35,000 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of 0.20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 22,000 cash in May. Instructions Prepare a budgeted income statement for 20Y9. Prepare a budgeted balance sheet as of December 31, 20Y9, with supporting calculations.
Budgeted income statement and supporting budgets The budget director of Jupiter Helmets Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for May: Prepare a cost of goods sold budget for May. Work in process at the beginning of May is estimated to be $4200. and work in process at the end of May is desired to be $3800.
Professional labor cost budget Based on the data in Exercise 13-5 and assuming that the average compensation per hour for staff is $36 and for partners is $300. prepare a professional labor cost budget for Day & Spieth, CPAs, for the year ending March 31. 20Y6. Use the following column headings:
Budgeted income statement and supporting budgets The budget director of Jupiter Helmets Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for May: Prepare a production budget for May.
Prepare a budgeted income statement for the month ending March 31, 2016.