Check my work 11 Finch Corporation has three divisions, each operating as a responsibility center. To provide an incentive for divisional executive officers, the company gives divisional management a bonus equal to 15 percent of the excess of actual net income over budgeted net income. The following is Atlantic Division's current year's performance: 2 points Skloped Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income Current Year $4,110,000 2,420,000 1,690,000 730,000 $ 960,000 eBook Print The president has just received next year's budget proposal from the vice president in charge of Atlantic Division. The proposal budgets a 6 percent increase in sales revenue with an extensive explanation about stiff market competition. The president is puzzled. Atlantic has enjoyed revenue growth of around 11 percent for each of the past five years. The president had consistently approved the division's budget proposals based on 6 percent growth in the past. This time, the president wants to show that he is not a fool. I will impose a 16 percent revenue increase to teach them a lesson!" the president says to himself smugly, D References Assume that cost of goods sold and selling and administrative expenses remain stable in proportion to sales. Required a. Prepare the budgeted income statement based on Atlantic Division's proposal of a 6 percent increase. b-1. Prepare income statement with 11% growth. b-2. If growth is actually 11 percent as usual, how much bonus would Atlantic Division's executive officers receive if the president had approved the division's proposal? c. Prepare the budgeted income statement based on the 16 percent increase the president imposed. d. If the actual results turn out to be a 11 percent increase as usual, how much bonus would Atlantic Division's executive officers receive since the president imposed a 16 percent increase? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Reqs C and D Prepare the budgeted income statement based on Atlantic Division's proposal of a 6 percent increase. Check my work 11 Assume that cost of goods sold and selling and administrative expenses remain stable in proportion to sales. Required 2 points Skloped a. Prepare the budgeted income statement based on Atlantic Division's proposal of a 6 percent increase. b-1. Prepare income statement with 11% growth. b-2. If growth is actually 11 percent as usual, how much bonus would Atlantic Division's executive officers receive if the president had approved the division's proposal? c. Prepare the budgeted income statement based on the 16 percent increase the president imposed. d. If the actual results turn out to be a 11 percent increase as usual, how much bonus would Atlantic Division's executive officers receive since the president imposed a 16 percent increase? eBook Complete this question by entering your answers in the tabs below. Print Req A Req B1 Reg B2 Reqs C and D References Prepare the budgeted income statement based on Atlantic Division's proposal of a 6 percent increase. FINCH CORPORATION Budgeted Income Statement Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income $ 0 ReqA Req B1 > Check my work 11 Assume that cost of goods sold and selling and administrative expenses remain stable in proportion to sales. Required 2 points Skipped a. Prepare the budgeted income statement based on Atlantic Division's proposal of a 6 percent increase. b-1. Prepare income statement with 11% growth. b-2. If growth is actually 11 percent as usual, how much bonus would Atlantic Division's executive officers receive if the president had approved the division's proposal? c. Prepare the budgeted income statement based on the 16 percent increase the president imposed. d. If the actual results turn out to be a 11 percent increase as usual, how much bonus would Atlantic Division's executive officers receive since the president imposed a 15 percent increase? eBook Complete this question by entering your answers in the tabs below. Print Reg A Reg B1 Reg B2 Regs C and D References Prepare income statement with 11% growth. FINCH CORPORATION Income Statement Sales revenue Cost of goods sold Gross profit Selling & administrativo exponses Net income S S Check my work 11 The president has just received next year's budget proposal from the vice president in charge of Atlantic Division. The proposal budgets a 6 percent increase in sales revenue with an extensive explanation about stiff market competition. The president is puzzled. Atlantic has enjoyed revenue growth of around 11 percent for each of the past five years. The president had consistently approved the division's budget proposals based on 6 percent growth in the past. This time, the president wants to show that he is not a fool. I will impose a 16 percent revenue increase to teach them a lesson!" the president says to himself smugly. 2 points Skipped Assume that cost of goods sold and selling and administrative expenses remain stable in proportion to sales. Required eBook a. Prepare the budgeted income statement based on Atlantic Division's proposal of a 6 percent increase. b-1. Prepare income statement with 11% growth. b-2. If growth is actually percent as usual, how much bonus would Atlantic Division's executive officers receive if the president had approved the division's proposal? c. Prepare the budgeted income statement based on the 16 percent increase the president imposed d. If the actual results turn out to be a 11 percent increase as usual, how much bonus would Atlantic Division's executive officers receive since the president imposed a 15 percent increase? Print References Complete this question by entering your answers in the tabs below. Reg A Req B1 Reg B2 Reqs C and D If growth is actually 11 percent as usual, how much bonus would Atlantic Division's executive officers receive if the president had approved the division's proposal? Bonus Check my work 11 The president has just received next year's budget proposal from the vice president in charge of Atlantic Division. The proposal budgets a 6 percent increase in sales revenue with an extensive explanation about stiff market competition. The president is puzzled. Atlantic has enjoyed revenue growth of around 11 percent for each of the past five years. The president had consistently approved the division's budget proposals based on 6 percent growth in the past. This time, the president wants to show that he is not a fool. "I will impose a 16 percent revenue increase to teach them a lesson!" the president says to himself smugly. 2 paints Skipped Assume that cost of goods sold and selling and administrative expenses remain stable in proportion to sales. Required eBook a. Prepare the budgeted income statement based on Atlantic Division's proposal of a 6 percent increase. b-1. Prepare income statement with 11% growth. b-2. If growth is actually 11 percent as usual, how much bonus would Atlantic Division's executive officers receive if the president had approved the division's proposal? c. Prepare the budgeted income statement based on the 16 percent increase the president imposed. d. If the actual results turn out to be a 11 percent increase as usual, how much bonus would Atlantic Division's executive officers receive since the president imposed a 16 percent increase? Print References Complete this question by entering your answers in the tabs below. Reg A Rog B1 Reg B2 Reqs C and D Prepare the budgeted income statement based on the 16 percent increase the president imposed. If the actual results turn out to be a 11 percent increase as usual, how much bonus would Atlantic Division's executive officers receive since the president imposed a 16 percent increase? FINCH CORPORATION Budgeted Income Statement Sales revenue Cost of goods sold Gross profit 0 Selling & administrative expenses Net income Bonus 0