- Students are to replicate table 12-5 in our textbook and show their formulas in Excel sheet (press the Ctrl button simultenuously grave accent which is usually the key right below the Esc key and the same as the ~ key)
- Students are to write 3-4 sentences synthesizing what the results indicate including a sentence that provides a recommendation for Donna's Gift shop.
TABLE 12-5 Donna's Gift Shop, Fiscal 2016 Budgeted versus Actual Profit-and-Loss Statement (in dollars and percent) Variance Budgeted Actual Dollars Dollars Dollars Percent Percent Percent Net sales $300,000 100.00 $330,000 100.00 +$30,000 Cost of goods sold $165,000 55.00 $180,000 54.55 -$15,000 +0.45 Gross profit $135,000 45.00 $150,000 45.45 +$15,000 +0.45 Operating expenses: $ 75,000 $ 75,000 +2.27 Salaries 25.00 22.73 Advertising 5,250 1.75 4,950 1.50 +$ 300 +0.25 1,800 0.50 Supplies 0.60 1,650 +$ 150 +0.10 Shipping 1,350 0.45 1,500 0.45 -$ 150 4,500 Insurance 1.50 4,500 1.36 +0.14 1.70 Maintenance 5,100 5,100 1.55 +0.15 Other 3,000 1.00 2,550 0.77 +$ 450 +0.23 28.86 Total 96,000 32.00 95,250 +3.14 +$ 750 Other costs $18,000 6.00 $20,000 6.06 -$ 2,000 -$ 1,250 -0.06 Total costs $114,000 38.00 $115,250 34.92 +3.08 $ 21,000 7.00 34,750 $ 15,500 $ 19,250 Net profit before taxes 10.53 +$13,750 +3.53 Taxes $9,000 3.00 4.70 -6,500 -1.70 $ 12,000 5.83 Net profit after taxes 4.00 +$ 7,250 +1.83 There are small rounding errors. a Variance in dollars is a positive number if actual sales or profits are higher than expected or actual expenses are lower than expected; variance is a negative number if actual sales or profits are lower than expected or actual expenses are higher than expected. Variance in percent depends upon the deviation of the actual percent of each budgeted item from the budgeted percent of each item. TABLE 12-5 Donna's Gift Shop, Fiscal 2016 Budgeted versus Actual Profit-and-Loss Statement (in dollars and percent) Variance Budgeted Actual Dollars Dollars Dollars Percent Percent Percent Net sales $300,000 100.00 $330,000 100.00 +$30,000 Cost of goods sold $165,000 55.00 $180,000 54.55 -$15,000 +0.45 Gross profit $135,000 45.00 $150,000 45.45 +$15,000 +0.45 Operating expenses: $ 75,000 $ 75,000 +2.27 Salaries 25.00 22.73 Advertising 5,250 1.75 4,950 1.50 +$ 300 +0.25 1,800 0.50 Supplies 0.60 1,650 +$ 150 +0.10 Shipping 1,350 0.45 1,500 0.45 -$ 150 4,500 Insurance 1.50 4,500 1.36 +0.14 1.70 Maintenance 5,100 5,100 1.55 +0.15 Other 3,000 1.00 2,550 0.77 +$ 450 +0.23 28.86 Total 96,000 32.00 95,250 +3.14 +$ 750 Other costs $18,000 6.00 $20,000 6.06 -$ 2,000 -$ 1,250 -0.06 Total costs $114,000 38.00 $115,250 34.92 +3.08 $ 21,000 7.00 34,750 $ 15,500 $ 19,250 Net profit before taxes 10.53 +$13,750 +3.53 Taxes $9,000 3.00 4.70 -6,500 -1.70 $ 12,000 5.83 Net profit after taxes 4.00 +$ 7,250 +1.83 There are small rounding errors. a Variance in dollars is a positive number if actual sales or profits are higher than expected or actual expenses are lower than expected; variance is a negative number if actual sales or profits are lower than expected or actual expenses are higher than expected. Variance in percent depends upon the deviation of the actual percent of each budgeted item from the budgeted percent of each item
