PROJECT 1 Prepare 'Budgeted Statement of Financial Performance' (also called 'a Budgeted Income Statement') for Fraser &
Question:
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PROJECT 1
Prepare 'Budgeted Statement of Financial Performance' (also called 'a Budgeted Income Statement') for Fraser & Company for July, August and September including the total for quarter ended 30 September.
List the expense accounts under the areas of Marketing, Administration and Financial Expenses
Sales budget: July $50 000
August $60 000
September $90 000
All sales are on credit and 20% of customers are expected to receive a
5%prompt payment discount.2% of all customers' accounts are expected to be
uncollectible.
Sales price is a mark-up of 100% on the cost of goods sold.
Interest expense is expected to be $1,000 per month.
Rental income is $2 000 per month.
The owner intends to withdraw $5 000 per month for personal expenses.
Marketing expenses have a fixed cost element of $5000 per month, plus a
variable cost element which is 10% of sales.
General and administrative expenses are $9000 per month
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