Animal World operates a chain of pet stores in the Prairies. The manager of each store reports to the regional manager, who, in tur More info More info i (Click the icon to view the actual income statements.) i (Click the icon to view the budgeted income statements Requirements 1. Prepare a report for July that shows the performance of the Winnipeg store, the Manitoba region, and the company as a whole Actual income statements Budgeted amounts for July were as follows: 2. As the Manitoba region manager, would you investigate the Winnipeg store on the basis of this report? Why or why not? 3. Briefly discuss the benefits of budgeting. Base your discussion on Animal World's performance report. Winnipeg Manitoba Companywide Winnipeg Manitoba Companywide Revenue $ 148,000 $ 1,645,000 5 4,600,000 161,000 $ 1,772,000 $ 4,850,000 Other Manitoba stores Revenue $ Expenses Operating income Expenses: Region manager/headquarters office 5 - $ 55,000 $ 119,000 Region manager/headquarters Finally, show the performance of the Winnipeg store. (For variances with a zero balance, make sure to enter "0" in the approp office 5 - 60,600 $ 121,000 Cost of materials 81,700 871,300 1,802,000 963,700 Winnipeg Cost of materials 86,600 1,973,000 Salary expense 38, 100 415,800 1, 121,000 Variance Salary expense 38,200 443,500 1,092,000 Favourable Depreciation expense 7,300 93,000 437,000 Depreciation expense 7,300 87,500 448,000 Revenues and Expenses: Actual Budget (Unfavourable) Utilities expense 4,500 46,200 262,000 Utilities expense 4,600 54,500 275,000 Revenue 2.600 34,900 178,000 Rent expense 3.900 32,800 169,000 Rent expense Expenses: Total expenses 134,200 1,516,200 3,919,000 Total expenses 140,600 1,642,600 ,078,000 Cost of materials 13,800 $ 128,800 $ 681,000 Operating income $ 20,400 5 129,400 $ 772,000 Salary expense Operating income Depreciation expense Utilities expense Print Done Rent expense Print Done Total expenses Operating income Requirement 2. As the Manitoba region manager, would you investigate the Winnipeg store on the basis of this report? Why or why not? (Enter all amounts as positive. Round percentages to two decimal places, X.XX%.) As region manager of the Manitoba region, you investigate the Winnipeg office on the basis of this report. Its operating income variance of ], which is V. is % of its budgeted income. This difference is investigating. The company afford to keep operating marginally profitable stores. Requirement 3. Briefly discuss the benefits of budgeting. Base your discussion on Animal World's performance report. Budgeting plan. The various levels of Animal World's management their operations to develop the detailed budgets in the performance report. Budgeting coordination and communication. The budgets of the performance report communicate from the company headquarters to region managers, and from region managers to store managers and their staff. Budgets also help managers activities across the company's operations. Budgeting helps managers evaluate . The budget versus actual comparisons in the report are better indicators of than current period actual amounts versus past period actual amounts. Budgeting also . The Winnipeg store, other Manitoba stores, stores in other regions, and the headquarters will be to meet their budgets if budgets are the benchmark for measuring performance, and if accept the budgets as fair. participation in the budgeting process helps ensure acceptanceAnimal World operates a chain of pet stores in the Prairies. The manager of each store reports to the regional manager, who, in turn, reports to headquarters in Regina. The actual income statements for the Winnipeg store, the Manitoba region (including the Winnipeg store), and the company as a whole (including the Manitoba region) for July are as follows: i (Click the icon to view the actual income statements.) i (Click the icon to view the budgeted income statements.) Requirements 1. Prepare a report for July that shows the performance of the Winnipeg store, the Manitoba region, and the company as a whole. 2. As the Manitoba region manager, would you investigate the Winnipeg store on the basis of this report? Why or why not? 3. Briefly discuss the benefits of budgeting. Base your discussion on Animal World's performance report. Requirement 1. Prepare a report that shows the performance of the Winnipeg store, the Manitoba region and the company as a whole We will begin with the company as a whole. (Use parentheses or a minus sign when entering the headquarters' expens - X More info More info Animal World Responsibility Accounting Performance Report Budgeted amounts for July were as follows: July Actual income statements Winnipeg Manitoba Companywide Winnipeg Manitoba Companywide Companywide 148,000 $ 1,645,000 $ 4,600,000 Revenue 161,000 $ 1,772,000 $ 4,850,000 Variance Revenue Operating Income of Regions and Favourable Expenses Headquarters' Office Expense Actual Budget (Unfavourable) Expenses: Region manager/headquarters Region manager/headquarters Headquarters' office expense 5 - 5 121,000 office $ - 55,000 $ 119,000 office 60,600 5 Manitoba Cost of materials 81,700 871,300 1,802,000 Cost of materials 86,60 963,700 1,973,000 38, 100 415,800 38,200 443,500 1,092,000 Stores in other regions Salary expense 1, 121,000 Salary expense 7,300 93,000 437,000 Depreciation expense 7,30 87,500 448,000 Operating income Depreciation expense 275,000 Utilities expense 4,500 46,200 262,000 Utilities expense 4,60 54,50 Now prepare the report that shows the performance of the Manitoba region. (Use parentheses or a minus sign when enter Rent expense 2,600 34,900 178,000 Rent expense 3,900 32.80 169,000 Manitoba 134,200 1,516,200 3,919,000 140,60 1,642,60 4,078,000 Total expenses Variance Total expenses Operating Income of Stores and Favourable 13,800 128,800 $ 681,000 20,400 $ 129,400 $ 772,000 Operating income Operating income Region Manager's Office Expense Actual Budget (Unfavourable) Region manager's office expense Winnipeg Print Done Other Manitoba stores Print Done Operating income Finally, show the performance of the Winnipeg store. (For variances with a zero balance, make sure to enter "0" in the appropriate cell. Use parentheses or a minus sign when entering any unfavourable variances.)