fi F A B Part 1 D E Version V In 000's Thunderduck Construction Income Statement Actual Quarterly for Year 1 Year 1 Actual Provided: 01 Year 1 New construction revenue 92 Year 1 Q3 Year 1 04 Year 1 Remodel revenue 35,605 42,790 48,326 43,098 24,568 Total revenue 29,482 35,378 31,133 60,173 72,272 Less: Cost of goods sold 83,704 74,231 39,112 46,977 Gross profit 53,571 47,508 21,061 Less: Selling and administrative expenses 25,295 30,133 26,723 Salaries expense 3,400 3,650 5 Marketing expense 3,900 4,400 1,568 2,250 - Legal expense 2,646 1,624 3,009 3,614 3 Business development expense 4,185 2,600 2,600 3,520 3,520 Depreciation expense 600 700 750 750 Office supplies expense 447 870 1,242 793 Miscellaneous expense 1,956 2,349 2,679 2,375 2 Total selling and admin expenses 13,579 16,032 18,922 17,174 3 Net operating income 7,481 9,263 11,212 9,549 4 5 -6 Thunderduck Construction 7. Income Statement 28 0 Budget Quarterly for Year 2 09 30 Year 2 Budget: 01 Year 2 02 Year 2 Q3 Year 2 04 Year 2 31 New construction revenue 32 Remodel revenue 33 Total revenue 34 Less: Cost of goods sold 35 Gross profit 36 Less: Selling and administrative expenses 37 Salaries expense Budgeted Income Statement Cash Budget Variance Analysis 3,712 Type here to search Total selling and admin expenses Net operating income B 13,579 7,481 16,032 9,263 D 18,922 11,212 E 17,174 9,549 Thunderduck Construction Income Statement Budget Quarterly for Year 2 3 02 Year 2 03 Year 2 04 Year 2 0 Year 2 Budget: 01 Year 2 1 New construction revenue -2 Remodel revenue 33 Total revenue 34 Less: Cost of goods sold 35 Gross profit 36 Less: Selling and administrative expenses 37 Salaries expense 38 Marketing expense 39 Legal expense 40 Business development expense 41 Depreciation expense 42 Office supplies expense 43 Miscellaneous expense 44 Total selling and admin expenses 45 Net operating income 46 47 48 19 50 51 52 53 54 55 56 57 58 Budgeted Income Statement Cash Budget Variance Analysis Type here to search Bi ailings Review View Developer Help AaBbCcDd AaBbCcDd AaBb C Editing Dictate Sensitivity Editor 1 Normal 1 No Spac... Heading 1 Reuse AL Files aph Styles Voice Sensitivity Editor Reuse Files 1.2.3.4 5 6. Tesuits and discussions will management: New construction and Calculate the average for Year 1. This will be the amount of revenue for Q1 Remodel revenue and Q4 of Year 2 Q2 and Q3 of Year 2 will be 25% higher than the Year 1 average due to high demand for homes in the spring Cost of goods sold 65% of total revenue in Q1 and Q3 in Year 2 60% of total revenue in Q2 and Q4 in Year 2. Salaries expense Mixed expense with a fixed portion of $5,600 per quarter for Q1, Q2, Q3. The variable portion is $5 per project - Fixed portion will be 25% higher in Q4 due to year-end bonuses. Variable will be the same as $5 per project. - 20 projects expected in Q1 and Q2 of Year 2. - 25 projects expected in Q3 and Q4 of Year 2 Marketing expense Equal to the same quarter in Year 1. Legal expense Calculate the average for Year 1. This will be the amount for every quarter in Year 2 Business development expense Depreciation expense $3,520 in Q1 and Q2 of Year 2 Due to an increase in projects, increase to $4, 100 in Q3 and Q4 of Year 2 - $750 in Q1 and Q2 of Year 2 Will increase to $900 in Q3 and Q4 of Year 2 due to new equipment. Calculate the average for Year 1. This will be the amount for Q1 and Q4 of Year 2 Q2 and Q3 of Year 2 will be 20% higher with expected increased business 4% of COGS each quarter of Year 2 Office supplies expense Miscellaneous expense Use the following assumptions for the cash budget based on historical results and discussions with management: New construction and All sales on made on account and have the following collection pattern: Remodel revenue 60% will be collected in the quarter the sale is made 30% will be collected in the quarter following the sale 10% will be collected two quarters following the sale Cost of goods sold All purchases of cost of goods sold are on account and have the following payment pattern 40% of purchases are paid for in the quarter of purchase The remainder are paid in the following quarter Selling and Cash is paid for all expenses in the quarter they are incurred except for administrative expenses depreciation expense (which is a non-cash expense) Purchase of equipment Equipment costing $12,500 was purchased at the beginning of Q3 of Year 2 Borrow from Bank The company signed a promissory note to borrow $15,250 at the beginning of Q2 of Year 2 Interest of $190 is due at the end of each quarter, beginning in Q3 of Year 2 w ----- 1 Normal 1 No Spac... Heading 1 = Editing Dictate Sensitivity Editor Reuse 21 Files graph Styles Voice Sensitivity Editor Reuse File 1 ...2 ...3..... 4.5.6 expense Due to an increase in projects, increase to $4, 100 in Q3 and Q4 of Year 2. Depreciation expense $750 in Q1 and Q2 of Year 2. Will increase to $900 in Q3 and Q4 of Year 2 due to new equipment. Office supplies expense Calculate the average for Year 1. This will be the amount for Q1 and Q4 of Year 2 Q2 and Q3 of Year 2 will be 20% higher with expected increased business Miscellaneous expense 4% of COGS each quarter of Year 2 of cost Use the following assumptions for the cash budget based on historical results and discussions with management: New construction and All sales on made on account and have the following collection pattern: Remodel revenue -60% will be collected in the quarter the sale is made 30% will be collected in the quarter following the sale 10% will be collected two quarters following the sale Cost of goods sold All purchases of of goods sold are on account and have the following payment pattern: 40% of purchases are paid for in the quarter of purchase The remainder are paid in the following quarter Selling and -Cash is paid for all expenses in the quarter they are incurred except for administrative expenses depreciation expense (which i on-cash expense) Purchase of equipment - Equipment costing $12,500 was purchased at the beginning of Q3 of Year 2 Borrow from Bank The company signed a promissory note to borrow $15,250 at the beginning of Q2 of Year 2 Interest of $190 is due at the end of each quarter, beginning in Q3 of Year 2 No loans will be repaid in Year 2 Beginning cash balance Started Year 2 with a $15,200 cash balance. Part 1 - Grading Rubric: Task Ridated income statement for each cuarter in Year Points Available 30 noints a fi F A B Part 1 D E Version V In 000's Thunderduck Construction Income Statement Actual Quarterly for Year 1 Year 1 Actual Provided: 01 Year 1 New construction revenue 92 Year 1 Q3 Year 1 04 Year 1 Remodel revenue 35,605 42,790 48,326 43,098 24,568 Total revenue 29,482 35,378 31,133 60,173 72,272 Less: Cost of goods sold 83,704 74,231 39,112 46,977 Gross profit 53,571 47,508 21,061 Less: Selling and administrative expenses 25,295 30,133 26,723 Salaries expense 3,400 3,650 5 Marketing expense 3,900 4,400 1,568 2,250 - Legal expense 2,646 1,624 3,009 3,614 3 Business development expense 4,185 2,600 2,600 3,520 3,520 Depreciation expense 600 700 750 750 Office supplies expense 447 870 1,242 793 Miscellaneous expense 1,956 2,349 2,679 2,375 2 Total selling and admin expenses 13,579 16,032 18,922 17,174 3 Net operating income 7,481 9,263 11,212 9,549 4 5 -6 Thunderduck Construction 7. Income Statement 28 0 Budget Quarterly for Year 2 09 30 Year 2 Budget: 01 Year 2 02 Year 2 Q3 Year 2 04 Year 2 31 New construction revenue 32 Remodel revenue 33 Total revenue 34 Less: Cost of goods sold 35 Gross profit 36 Less: Selling and administrative expenses 37 Salaries expense Budgeted Income Statement Cash Budget Variance Analysis 3,712 Type here to search Total selling and admin expenses Net operating income B 13,579 7,481 16,032 9,263 D 18,922 11,212 E 17,174 9,549 Thunderduck Construction Income Statement Budget Quarterly for Year 2 3 02 Year 2 03 Year 2 04 Year 2 0 Year 2 Budget: 01 Year 2 1 New construction revenue -2 Remodel revenue 33 Total revenue 34 Less: Cost of goods sold 35 Gross profit 36 Less: Selling and administrative expenses 37 Salaries expense 38 Marketing expense 39 Legal expense 40 Business development expense 41 Depreciation expense 42 Office supplies expense 43 Miscellaneous expense 44 Total selling and admin expenses 45 Net operating income 46 47 48 19 50 51 52 53 54 55 56 57 58 Budgeted Income Statement Cash Budget Variance Analysis Type here to search Bi ailings Review View Developer Help AaBbCcDd AaBbCcDd AaBb C Editing Dictate Sensitivity Editor 1 Normal 1 No Spac... Heading 1 Reuse AL Files aph Styles Voice Sensitivity Editor Reuse Files 1.2.3.4 5 6. Tesuits and discussions will management: New construction and Calculate the average for Year 1. This will be the amount of revenue for Q1 Remodel revenue and Q4 of Year 2 Q2 and Q3 of Year 2 will be 25% higher than the Year 1 average due to high demand for homes in the spring Cost of goods sold 65% of total revenue in Q1 and Q3 in Year 2 60% of total revenue in Q2 and Q4 in Year 2. Salaries expense Mixed expense with a fixed portion of $5,600 per quarter for Q1, Q2, Q3. The variable portion is $5 per project - Fixed portion will be 25% higher in Q4 due to year-end bonuses. Variable will be the same as $5 per project. - 20 projects expected in Q1 and Q2 of Year 2. - 25 projects expected in Q3 and Q4 of Year 2 Marketing expense Equal to the same quarter in Year 1. Legal expense Calculate the average for Year 1. This will be the amount for every quarter in Year 2 Business development expense Depreciation expense $3,520 in Q1 and Q2 of Year 2 Due to an increase in projects, increase to $4, 100 in Q3 and Q4 of Year 2 - $750 in Q1 and Q2 of Year 2 Will increase to $900 in Q3 and Q4 of Year 2 due to new equipment. Calculate the average for Year 1. This will be the amount for Q1 and Q4 of Year 2 Q2 and Q3 of Year 2 will be 20% higher with expected increased business 4% of COGS each quarter of Year 2 Office supplies expense Miscellaneous expense Use the following assumptions for the cash budget based on historical results and discussions with management: New construction and All sales on made on account and have the following collection pattern: Remodel revenue 60% will be collected in the quarter the sale is made 30% will be collected in the quarter following the sale 10% will be collected two quarters following the sale Cost of goods sold All purchases of cost of goods sold are on account and have the following payment pattern 40% of purchases are paid for in the quarter of purchase The remainder are paid in the following quarter Selling and Cash is paid for all expenses in the quarter they are incurred except for administrative expenses depreciation expense (which is a non-cash expense) Purchase of equipment Equipment costing $12,500 was purchased at the beginning of Q3 of Year 2 Borrow from Bank The company signed a promissory note to borrow $15,250 at the beginning of Q2 of Year 2 Interest of $190 is due at the end of each quarter, beginning in Q3 of Year 2 w ----- 1 Normal 1 No Spac... Heading 1 = Editing Dictate Sensitivity Editor Reuse 21 Files graph Styles Voice Sensitivity Editor Reuse File 1 ...2 ...3..... 4.5.6 expense Due to an increase in projects, increase to $4, 100 in Q3 and Q4 of Year 2. Depreciation expense $750 in Q1 and Q2 of Year 2. Will increase to $900 in Q3 and Q4 of Year 2 due to new equipment. Office supplies expense Calculate the average for Year 1. This will be the amount for Q1 and Q4 of Year 2 Q2 and Q3 of Year 2 will be 20% higher with expected increased business Miscellaneous expense 4% of COGS each quarter of Year 2 of cost Use the following assumptions for the cash budget based on historical results and discussions with management: New construction and All sales on made on account and have the following collection pattern: Remodel revenue -60% will be collected in the quarter the sale is made 30% will be collected in the quarter following the sale 10% will be collected two quarters following the sale Cost of goods sold All purchases of of goods sold are on account and have the following payment pattern: 40% of purchases are paid for in the quarter of purchase The remainder are paid in the following quarter Selling and -Cash is paid for all expenses in the quarter they are incurred except for administrative expenses depreciation expense (which i on-cash expense) Purchase of equipment - Equipment costing $12,500 was purchased at the beginning of Q3 of Year 2 Borrow from Bank The company signed a promissory note to borrow $15,250 at the beginning of Q2 of Year 2 Interest of $190 is due at the end of each quarter, beginning in Q3 of Year 2 No loans will be repaid in Year 2 Beginning cash balance Started Year 2 with a $15,200 cash balance. Part 1 - Grading Rubric: Task Ridated income statement for each cuarter in Year Points Available 30 noints a