PR 9-41 (Algo) Revised Operating Budget; Consulting Firm (LO 9-2, 9-5, 9-7)

Toronto Business Associates, a division of Maple Leaf Services Corporation, offers management and computer consulting services to clients throughout Canada and the northwestern United States. The division specializes in website development and other Internet applications. The corporate management at Maple Leaf Services is pleased with the performance of Toronto Business Associates for the first nine months of the current year and has recommended that the division manager, Richard Wu, submit a revised forecast for the remaining quarter, as the division has exceeded the annual plan year-to-date by 20 percent of operating income. An unexpected increase in billed-hour volume over the original plan is the main reason for this increase in income. The original operating budget for the first three quarters for Toronto Business Associates follows.

1. Prepare a revised operating budget for the fourth quarter for Toronto Business Associates that Richard Wu will present to corporate management.

Check my work Revised Operating Budget For the Fourth Quarter of 201 \begin{tabular}{|l|l|} \hline Revenue: & \\ \hline Consulting fees: & \\ \hline Computer system consulting & \\ \hline Management consulting & $ \\ \hline Total consulting fees & \\ \hline Other revenue & $ \\ \hline Total revenue & \\ \hline Expenses: & \\ \hline Consultant salary expenses & \\ \hline Travel and related expenses & \\ \hline General and administrative expenses & \\ \hline Depreciation expense & \\ \hline Corporate expense allocation & $ \\ \hline Total expenses & \\ \hline Operating income & \\ \hline \end{tabular} Check my work Revised Operating Budget For the Fourth Quarter of 201 \begin{tabular}{|l|l|} \hline Revenue: & \\ \hline Consulting fees: & \\ \hline Computer system consulting & \\ \hline Management consulting & $ \\ \hline Total consulting fees & \\ \hline Other revenue & $ \\ \hline Total revenue & \\ \hline Expenses: & \\ \hline Consultant salary expenses & \\ \hline Travel and related expenses & \\ \hline General and administrative expenses & \\ \hline Depreciation expense & \\ \hline Corporate expense allocation & $ \\ \hline Total expenses & \\ \hline Operating income & \\ \hline \end{tabular}