The Speedy-Mart Store has the following budgeted sales, which are uniform throughout the month: 

Excel Spreadsheet Template 

May $450,000 

June 375,000

 July 330,000 

August 420,000 

Cost of goods sold averages 70 percent of sales and inventory is purchased as it is needed. Employees earn fixed salaries of $22,000 (total) monthly and commissions of 10 percent of the current month’s sales. Other expenses are rent, $6,000,paid on the first of each month; miscellaneous expenses, 6 percent of sales, paid as incurred; insurance, $450 per month, from a one-year policy that was paid for on January 2; and depreciation, $2,850 per month. 

1. Using spreadsheet software, prepare a table of budget data for the Speedy-Mart Store. 

2. Continue the spreadsheet in requirement 1 to prepare budget schedules for (a) disbursements for operating expenses and (b) operating income for June, July, and August. 

3. Adjust the budget data appropriately for each of the following scenarios independently and recompute operating income using the spreadsheet.

a. A sales promotion that will cost $30,000 in May could increase sales in each of the following three months by 5 percent. 

b. Eliminating the sales commissions and increasing employees salaries to $52,500 per month could decrease sales thereafter by a net of 2 percent.