A Company is preparing its budget for the next year.The following are forecasted data that relates to the first quarter:
Unit sales:
January …………………………………………..40,000
February ………………………………………..60,000
March ………………………………………………….50,000
Unit sale price ……………………………$25.00
Cost of goods sold/unit …….$14.00
Expenses:
Commissions………………………….$10% of sales
Rent…………………………………………….$20,000/month
Advertising…………………………..15% of sales
Office salaries…………………$75,000/month
Depreciation……………………….$50,000/month
Interest……………………………………15% annual on a $250,000 note payable
Tax rate………………………………………40%
Calculate budget amounts for each month:
January February March
Sales
Cost of Goods sold
Gross Profit
Operating Expenses
Commissions
Rent
Advertising
Office Salaries
Depreciation
Interest
Total Operating expenses
Income before taxes
Tax expense
Net Income