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Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales
Fortune, Inc., is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are forecasted at 45,000 for January, 65,000 for February, and 55,000 for March. Cost of goods sold is $12 per unit. Other expense information for the first quarter follows. |
Commissions | 10 | % | of sales dollars | ||
Rent | $ | 23,000 | per month | ||
Advertising | 12 | % | of sales dollars | ||
Office salaries | $ | 75,000 | per month | ||
Depreciation | $ | 47,000 | per month | ||
Interest | 14 | % | annually on a $230,000 note payable | ||
Tax rate | 30 | % | |||
Prepare a budgeted income statement for this first quarter. (Rounding your final answers to the nearest whole dollar.) |
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