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   ACC 206 Week 5 Chapter 22 P 22-22A Exel

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ACC 206 Week 5 Chapter 22 P 22-22A Exel
« on: Jan 29^th, 2016, 7:54am »

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ACC 206 Week 5 Chapter 22 P 22-22A Exel

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ACC 206 Week 5 Chapter 22 P 22-22A Exel

There is ACC 206 Week 5 Chapter 22 P 22-22A Exel in this pack
P22-22A Preparing an operating budget [30 min]
Thumbtack's March 31, 2012, budgeted balance sheet follows:
The budget committee of Thumbtack Office Supply has assembled the following data.
a. Sales in April were $40,000. You forecast that monthly sales will increase 2% over April's sales in May. June's sales will increase 4% over April's sales. July's sales will increase 20% over April's sales. Collections are 80% in the month of sale and 20% in the month following sale.
b. Thumbtack maintains inventory of $11,000 plus 25% of the COGS budgeted for the following month. COGS = 50% of sales revenue. Purchases are paid 30% in the month of purchase and 70% in the month following the purchase.
c. Monthly salaries amount to $7,000. Sales commissions equal 5% of sales for that month. Salaries and commissions are paid 30% in the month incurred and 70% in the following month.
d. Other monthly expenses are as follows:
Requirements
1. Prepare Thumbtack's sales budget for April and May, 2012. Round all amounts to the nearest $1.
2. Prepare Thumbtack's inventory, purchases, and cost of goods sold budget for April and May.
3. Prepare Thumbtack's operating expenses budget for April and May.
4. Prepare Thumbtack's budgeted income statement for April and May.
Note: We recommend you solve this and the related problems (P22-23A and P22-24A) using Excel templates that you create.

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