Gambrell Company prepared the following budgeted income statement for the first quarter of 2018 FE(Click the icon to view the budgeted income statement) Gambrell Company is considering two options (Click the icon to view the options.) Read the requirements Requirement 1. Prepare budgeted income statements for both options, assuming both options begin in Begin by preparing the budgeted income statement for Option 1 Data Table Gambrell Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February March Total Total 91 000 Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Income Tax Expense Gambrell Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February March Net Sales Revenue (20% increase per month) $ 25 000 $ 30.000 $ 36,000 $ Cost of Goods Sold (10% of sales) 2.500 3.000 3.600 Gross Profit 22.500 27 000 32.400 S and A Expenses ($1.500 + 7% of sales) 3.250 3.600 4,020 Operating Income 19 250 23 400 28,380 Income Tax Expense (10% of operating income) 2.340 2.838 5 17,325 5 21,0605 Net Income 25,542 5 9,100 81.900 10.870 71.030 7,103 63.927 1.925 Net Income Now prepare the budgeted income statement for Option 2 (Round all amounts to the nearest whole num Enter any number in the edit fields and then continue to the next question Print Done O Type here to search Read the requirements. ning both options begin in J Data Table - X More Info Option 1 is to increase advertising by $1,300 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 15% 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 Operating Income Income Tax Expense (10% of operating income) s to the nearest whole nume Net Income Read the requirements. suming both options begin in J Data Table - X Requirements 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 Gambrell choose? Explain your reasoning. Print Done Operating Income Income Tax Expense (10% of operating income) Net income punts to the nearest whole numb Requirement 1. Prepare budgeted income statements for both options, assuming both options begin in J Begin by preparing the budgeted income statement for Option 1 Gambrell Company Budgeted Income Statement For the Quarter Ended March 31, 2018 January February March Total Sales Revenue Cost of Goods Sold Ne Gross Profit Co S and A Expenses Gre Operating Income sa Income Tax Expense Ope Inco Net Income Net Now prepare the budgeted income statement for Option 2. (Round all amounts to the nearest whole num Enter any number in the edit fields and then continue to the next question Gambrell Company prepared the following budgeted income statement for the first quarter of 2018: E: (Click the icon to view the budgeted income statement.) Gambr i (CI Read to Gambrell Company Budgeted Income Statement For the Quarter Ended March 31, 2018 Data Table January February March Total Sales Revenue Cost of Goods Sold Gross Profit S and A Expenses Operating Income Net Sales Revenue Cost of Goods Sold Income Tax Expense Gross Profit Net Income Requirement 2. Which option should Gambrell choose? Explain your reasoning S and A Expenses Operating Income Income Tax Expense If one of the two options is chosen, it would be because net income for the quarter is expected currently budgeted, Gambrell may decide Net Income Enter any number in the edit fields and then continue to the next question Type here to search