Question
The budget committee of Sally's Suits, an upscale women's clothing retailer, has assembled the following data. As the business manager, you must prepare the budgeted
The budget committee of Sally's Suits, an upscale women's clothing retailer, has assembled the following data. As the business manager, you must prepare the budgeted income statements for May and June.
Requirement
Prepare Sally's Suits budgeted income statements for May and June. Show cost of goods sold computations.
Sales in April were $50,000.You forecast that monthly sales will increase 10% in May and an additional 55% in June. | |||||||||||||
b. | Sally's Suits maintains inventory of $7,000 plus 30% of the sales revenues budgeted for the following month. Monthly purchases average 50% of sales revenue in that same month. Actual inventory on April 30 is $23,500. Sales budgeted for July are $50,000. | ||||||||||||
c. | Monthly salaries amount to $3,000. Sales commissions equal 10% of sales for that month. Combine salaries and commissions into a single figure. | ||||||||||||
d. | Other monthly expenses are as follows:
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