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1 of 4 Data Table Ivey Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February Net Sales Revenue (20% increase per month) $ 25,000 $ 30,000 $ Cost of Goods Sold (20% of sales) 5,000 6,000 Gross Profit 20,000 24,000 S and A Expenses ($3,000 + 12% of sales) 6,000 6,600 Operating Income 14,000 17,400 Income Tax Expense (20% of operating income) 2,800 3,480 11,200 $ 13,920 $ Net Income March 36,000 $ 7,200 28,800 7,320 Total 91,000 18,200 72,800 19,920 52,880 10,576 42,304 21,480 4.296 17,184 $ Print Done CH:24 - Short Exercises 04/23/20 9:35am MacBook Pro budgeted income statement for the first Ivey Company is considering two options. (Click the icon to view the options.) sted income statement.) Read the requirements. 0 Requirements re inog N 1. Prepare budgeted income statements for both options, assuming both options begin in January and January sales remain $25,000. Round all calculations to the nearest dollar 2. Which option should Ivey choose? Explain your reasoning, gete Quart nuary Print Done it fields and then continue to the next question. CH:24 - Short Exercises Ivey Ivey Company prepared the following budgeted income statement for the first quarter of 2018: (Click the icon to view the budgeted income statement.) 1 Reac Begin by preparing the budgeted income statement for Option 1. Total Ivey Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February March Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Income Tax Expense Not Income Now prepare the budgeted income statement for Option 2 (Round all amounts to the nearest whole number) Enter any number in the edit fields and then continue to the next question Save for Later MacBook Pro This Question: 6 pts 1 of 4 Ivey Company prepared the following budgeted income statement for the first quarter of 2018: (Click the icon to view the budgeted income statement.) Ivey Comp. (Click to Read the rec Now prepare the budgeted income statement for Option 2. (Round all amounts to the nearest whole number.) Total Ivey Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February Marche Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Income Tax Expense Net Income Requirement 2. Which option should Ivey choose? Explain your reasoning. Enter any number in the edit fields and then continue to the next question. Save for Later MacBook Pro mpany prepared the following budgeted income statement for the first quarter of 2018 the icon to view the budgeted Income statement) Ney Company is considering two options Click the icon to view the options) Read the requirements Total Budgeted Income Statement For the Quarter Ended March 31, 2018 January February March Revenue Dost of Goods Sold Gros Pro Sand Expenses Operating Income income Tax Expense Not neome Requirement 2. Which option should Ivey choose? Explain your reasoning would be d i n one of the websischese than 142 304 b because not income for the quarter is expected to be higher under the antion. However, because both and vymaydi y Enter any number in the edities and then continue to the next question MacBook Pro UOP 1 of 4 ment for the first quarter of 2018: Ivey Company is considering two options. (Click the icon to view the options.) Read the requirements. oth options, assuming both options begin in January and January sales remain $25,000. Round all * More Info 201 Option 1 is to increase advertising by $1,500 per month Option 2 is to use better-quality materials in the manufacturing process. The better materials will increase the cost of goods sold to 25% but will provide a better product at the same sales price. The marketing manager projects either option will result in sales increases of 25% per month rather than 20%. Print Done ue to the next question. MacBook Pro