only need the budgeted income statement for the year ended december 31,2019

i Data Table - or bici naster Gessing Tire Company Balance Sheet December 31, 2018 Assets $ Current Assets Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment 52,000 35,000 1,900 2,400 $ 91,300 142,000 Check A Print Done Clear All Eric Comprehensive Budgeting Problem 1 of 1 (1 complete) Data Table - X C er Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation 142,000 (50,000) 92,000 Total Assets $ 183,300 $ 10,000 Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par $ 110,000 63,300 Retained Earnings Total Stockholders' Equity $ Total Liabilities and Stockholders' Equity 173,300 183,300 Print Done Crea Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,000 tires for the first quarter and expected to increase by 100 tires per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account b. Finished Goods Inventory on December 31, 2018 consists of 100 tires at $24 each. c. Desired ending Finished Goods Inventory is 50% of the next quarter's sales; first quarter sales for 2020 are expected be 1,400 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 200 pounds of rubber compound used to manufacture the tires e. Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is $9.50 per pound. f. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production: desired ending inventory for December 31, 2019 is 200 pounds; indirect materials are insignificant and not considered for budgeting purposes. g. Each tire requires 0.60 hours of direct labor, direct labor costs average $16 per hour. h. Variable manufacturing overhead is $2 per tire i. Fixed manufacturing overhead includes $3,500 per quarter in depreciation and $28,220 per quarter for ng Print Done 1 of 1 (1 complete) More Info for rent: $1,650 per quarter for insurance; and $1,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. 1. Capital expenditures include $35,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 80% in the quarter of the sale and 20% in the quarter following the sale; December 31, 2018, Accounts Receivable is received in the first quarter of 2019, uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 80% in the quarter purchased and 20% in the following quarter, December 31, 2018 Accounts Payable is paid in the first quarter of 2019. 0. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred p. Income tax expense is projected at $3,000 per quarter and is paid in the quarter incurred. q. Gessing desires to maintain a minimum cash balance of $50,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter: principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 6% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter Print Done i Requirements . X 1. Prepare Gessing's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours. Round all calculations to the nearest dollar. 2. Prepare Gessing's annual financial budget for 2019, including budgeted income statement and budgeted balance sheet. Print Done k Check Answer Budgeted Income Statement For the Year Ended December 31, 2019 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income Interest Expense Income before Income Taxes Income Tax Expense Enter any number in the edit fields and then click Check Answer nant 2.2.-IH Sillal U) Que Other data for Gessing Tire Company (Click the icon to view the other data) Read the cute The Gessing Tire Company manufactures racing tires for bicycles, Gessing sells tires for $85 each Gessing is planning for the next year by developing a master budget by quarters. Gessing's balance sheet for December 31, 2018. follows: (Click the icon to view the balance sheet.) Budgeted Income Statement For the Year Ended December 31, 2019 Sales Revenue Cost of Good old Gross Proff Sandristrative Expenses Dong incom encome Taxes Income Tax Expense Enter any number in the edit fields and then click Check Answer Check Answer Clear All 1 part remaining i Data Table - or bici naster Gessing Tire Company Balance Sheet December 31, 2018 Assets $ Current Assets Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment 52,000 35,000 1,900 2,400 $ 91,300 142,000 Check A Print Done Clear All Eric Comprehensive Budgeting Problem 1 of 1 (1 complete) Data Table - X C er Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation 142,000 (50,000) 92,000 Total Assets $ 183,300 $ 10,000 Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par $ 110,000 63,300 Retained Earnings Total Stockholders' Equity $ Total Liabilities and Stockholders' Equity 173,300 183,300 Print Done Crea Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,000 tires for the first quarter and expected to increase by 100 tires per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account b. Finished Goods Inventory on December 31, 2018 consists of 100 tires at $24 each. c. Desired ending Finished Goods Inventory is 50% of the next quarter's sales; first quarter sales for 2020 are expected be 1,400 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 200 pounds of rubber compound used to manufacture the tires e. Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is $9.50 per pound. f. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production: desired ending inventory for December 31, 2019 is 200 pounds; indirect materials are insignificant and not considered for budgeting purposes. g. Each tire requires 0.60 hours of direct labor, direct labor costs average $16 per hour. h. Variable manufacturing overhead is $2 per tire i. Fixed manufacturing overhead includes $3,500 per quarter in depreciation and $28,220 per quarter for ng Print Done 1 of 1 (1 complete) More Info for rent: $1,650 per quarter for insurance; and $1,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. 1. Capital expenditures include $35,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 80% in the quarter of the sale and 20% in the quarter following the sale; December 31, 2018, Accounts Receivable is received in the first quarter of 2019, uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 80% in the quarter purchased and 20% in the following quarter, December 31, 2018 Accounts Payable is paid in the first quarter of 2019. 0. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred p. Income tax expense is projected at $3,000 per quarter and is paid in the quarter incurred. q. Gessing desires to maintain a minimum cash balance of $50,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter: principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 6% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter Print Done i Requirements . X 1. Prepare Gessing's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours. Round all calculations to the nearest dollar. 2. Prepare Gessing's annual financial budget for 2019, including budgeted income statement and budgeted balance sheet. Print Done k Check Answer Budgeted Income Statement For the Year Ended December 31, 2019 Sales Revenue Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income Interest Expense Income before Income Taxes Income Tax Expense Enter any number in the edit fields and then click Check Answer nant 2.2.-IH Sillal U) Que Other data for Gessing Tire Company (Click the icon to view the other data) Read the cute The Gessing Tire Company manufactures racing tires for bicycles, Gessing sells tires for $85 each Gessing is planning for the next year by developing a master budget by quarters. Gessing's balance sheet for December 31, 2018. follows: (Click the icon to view the balance sheet.) Budgeted Income Statement For the Year Ended December 31, 2019 Sales Revenue Cost of Good old Gross Proff Sandristrative Expenses Dong incom encome Taxes Income Tax Expense Enter any number in the edit fields and then click Check Answer Check Answer Clear All 1 part remaining