Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare annual income statement plan using the information on the attached file. The first tab is the income statement; the plan column will populate sales

Prepare annual income statement plan using the information on the attached file. The first tab is the income statement; the plan column will populate sales and operating expenses from your inputs on the second and third tabs. You will directly input "other income" and "tax expense" on the fist tab. The second tab is the sales history to help you develop the sales plan on this tab. The third tab is the expense detail history to help you develop the expense plan on this tab. Add comments to the tabs to help support the assumptions you are making. As you analyze the historical performance, you will note certain aspects of the company strategy regarding each product. Before building your annual plan, you will have to decide what changes, if any, you need to make to the company strategy.

Unit Sales 200 190 160 Input
Price Per Unit $ 15.00 $ 16.00 $ 18.00 Input
Sales Revenue $ 3,000 $ 3,040 $ 2,880 $ - Calculated
Cost of Goods Sold $ 1,800 $ 1,700 $ 1,550 Input
Gross Profit $ 1,200 $ 1,340 $ 1,330 $ - Calculated
Total
Sales Revenue $ 5,000 $ 5,224 $ 5,318 $ -
Cost of Sales 3,300 3,300 3,390 -
Gross Profit 1,700 1,924 1,928 -
At least 4 comments to support plan assumptions:

Expense History - use the detail below to help build the expense plan
Calculating expenses as a percent of product revenue will help you make decisions and build the expense plan
2021 2022 2023 2024
Marketing - Product A 100 109 195 Input these 5 expense lines
Marketing - Product B 210 182 144
Commissions - Product A 140 153 146
Commissions - Product B 300 365 346
Administrative Expense 500 520 550
Selling and Admin Exp 1,250 1,329 1,381 - Calculated
Depreciation Expense 100 95 90 Input these 3 expense lines
Rent Expense 50 53 55
Other Operating Exp 30 28 27
Other Operating Expense 180 176 172 - Calculated
At least 5 comments to support plan assumptions:

Step by Step Solution

3.40 Rating (144 Votes )

There are 3 Steps involved in it

Step: 1

To prepare the annual income statement plan we will use the information provided in the sales history and expense detail history tabs We will input th... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Accounting questions

Question

Which type of casting is the most common and most versatile?

Answered: 1 week ago

Question

Do any of my ideas contradict one another?

Answered: 1 week ago