Hi-value Products Company is creating an operating budget for - 13484

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yousafbhutta

yousafbhutta

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Hi-value Products Company is creating an operating budget for the 3rd quarter. Please review the following budgets:

 

Sales Budget

Jul

Aug

Sep

Cash sales: 75%

$75,000

$90,000

$120,000

Credit sales: 25%

25,000

30,000

40,000

Total sales

$100,000

$120,000

$160,000

       

Inventory, Purchases and COGS. Budget

Jul

Aug

Sep

Cost of goods sold

$60,000

$72,000

$96,000

Desired ending inventory

38,000

50,000

62,000

Total inventory required

98,000

122,000

158,000

less Beginning inventory

(50,000)

(38,000)

(50,000)

Purchases

$48,000

$84,000

$108,000

 

 

 

Operating Expenses Budget

Jul

Aug

Sep

Variable operating expenses:

     

Misc. expense (10% of sales)

$10,000

$12,000

$16,000

Total variable expenses

10,000

12,000

16,000

Fixed operating expenses:

     

Salary expense

12,000

12,000

12,000

Rent expense

8,000

8,000

8,000

Depreciation expense

5,600

5,600

5,600

Misc. expense (fixed portion)

4,200

4,200

4,200

Total fixed expenses

29,800

29,800

29,800

Total operating expenses

$39,800

$41,800

$45,800

 


Using the format below, please prepare a budgeted income statement.

 

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