In this activity, you will continue your work at Mica Associates. Assume this is the end of the second quarter of the year for which you prepared a supplies budget. You need to compare the amount you have spent for office supplies to the budgeted amounts for the first and second quarters.

In quarter 1, you spent $766.28 for office supplies. In quarter 2, you spent $902.45. Compare these amounts to the amounts budgeted for quarters 1 and 2 on the office supplies budget you created earlier. (Refer to the 8-1 Math Skills file that you edited earlier.)

For each quarter, are you over or under budget and by how much? For each quarter, what percent of the budgeted amount is the actual amount spent?

Report your findings in a memo:

Make a memo form with the appropriate headings.

Write the memo to the Accounting Department head, Freda Amosa.

Use the date July 6, 20--, and an appropriate subject line.

In the memo, tell Freda whether or not the office supplies expenses for quarters 1 and 2 are with the budgeted amounts. Discuss the following:

The amount you had budgeted for office supplies for quarters 1 and 2 and the amounts you have actually spent

The amount you are over or under budget for each quarter

What percent of the budgeted amount the actual amount is for each quarter

Whether you are over or under budget for the two quarters combined

Make a bar graph to compare budgeted and actual amounts for office supplies for quarters 1 and 2. Copy the graph into your memo to illustrate the data.

Proofread carefully and correct all errors before printing the memo.

8-1 Activity 2

Projected Income Statements

(Objectives 8-1b)

You are an office worker for Duncan's Auto Detailing. The owner, Mr. Leon Duncan, has asked you to create two projected income statements for next year based on two different levels of potential business.

Open the file 8-1 Activity 2 from the data files. This file contains last year's income statement for Duncan's Auto Detailing.

Make two copies of the last year income statement sheet in the workbook. Name the copies Best Case and Worst Case. Change the second line of the title of the Best Case and Worst Case sheets to Projected Income Statement. On the Best Case and Worst Case sheets, insert a row above the date and add the heading Best Case or Worst Case.

Make the changes Mr. Duncan projects for the best case as listed below:

Sales will increase by 25 percent compared to last year.

Detailing labor will increase by $20,000.

Supplies will increase by 25 percent.

Advertising will increase by $400.

Payroll taxes will increase by $1,500.

Utilities will increase by 25 percent.

Miscellaneous expense will stay the same.

Income tax expense will be at the same rate as last year. To find last year's rate, divide the income tax by the net income before tax on last year's sheet.

Make the changes Mr. Duncan projects for the worst case as listed below:

Sales will decrease by 20 percent compared to last year.

Detailing labor will decrease by $20,000.

Supplies will decrease by 20 percent.

Payroll taxes will decrease by $1,500.

Utilities will decrease by 20 percent.

Miscellaneous expense will stay the same.

Income tax expense will be at the same rate as last year.

Format the Best Case and Worst Case sheets to print attractively on the page. Print copies of the sheets for the best-case and worst-case projections. What were the gross profit on sales percentages for the two alternatives? How much profit or loss after taxes will Mr. Duncan have under each alternative?

(I did this assignment and my teacher rejected it , she wouldn't explain how to do it properly)