Question
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
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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...Get Instant Access to Expert-Tailored Solutions
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