Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Revenues 2013 2014 2015 Sales 1,292,400.00 1,305,324.00 1,318,377.24 Expenses Payroll 770,654.00 786,067.08 817,509.76 Office 75,325.00 71,558.75 67,980.81 Advertising 198,456.00 218,301.60 261,961.92 Insurance 22,458.00 22,458.00 22,458.00
Revenues | 2013 | 2014 | 2015 | ||||
Sales | 1,292,400.00 | 1,305,324.00 | 1,318,377.24 | ||||
Expenses | |||||||
Payroll | 770,654.00 | 786,067.08 | 817,509.76 | ||||
Office | 75,325.00 | 71,558.75 | 67,980.81 | ||||
Advertising | 198,456.00 | 218,301.60 | 261,961.92 | ||||
Insurance | 22,458.00 | 22,458.00 | 22,458.00 | ||||
Training & Research | 178,954.00 | 170,006.30 | 153,005.67 | ||||
Service Charges | 11,789.00 | 11,199.55 | 11,759.53 | ||||
Total Operating Expenses | 1,257,636.00 | 1,279,591.28 | 1,334,675.69 | ||||
Net Operating Income/(Loss) | 34,764.00 | 25,732.72 | (16,298.45) | ||||
Create a 2016 budget using the following assumptions. For accounts where assumptions are not specified, use trend analysis | |||||||
1. Payroll costs are expected to increase 5% due to merit raises | |||||||
2. Service charges will remain constant. | |||||||
3. Training and research are still critical components of the company and will actually increase by 7%. | |||||||
What will be the budgeted net income or net loss after all assumptions and trends have been recorded? | |||||||
(indicate if the figure is a net income or a net loss) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started