ns, an upscale women\'s clothing retailer, has assembled the following data. As

Question

ns, an upscale women's clothing retailer, has assembled the following data. As the business manager, you must prepare the bu toi Data Table om a. Sales in April were $35,000. You forecast that monthly sales will increase 10% in May and an stat additional 2% in June. ollar.) b. Chelsey Fashions maintains inventory of $9,000 plus 10% 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 $12,850. Sales budgeted for July are $45,000. Monthly salaries amount to $3,000. Sales commissions equal 10% of sales for that month. Combine salaries and commissions into a single figure. c. d. Other monthly expenses are as follows: Rent expense.$2,800, paid as incurred Depreciation expense $700 Insurance expense. .. Income tax . . . . . . . . . . . 20% of operating income me $400, expiration of prepaid amount et ths Print Done ber in the input fields and then continue to the next question

Explanation / Answer

May June Beginning Inventory $12,850 12927 Add: Purchases 19250 19635 (38599*50%) (39270*10%) Less: Ending Inventory 12927 13500 9000+(39270*10%) 9000+(45000*10%) Cost of Good sold $19,173 $19,062 working May June July Sales 38500 39270 45000 $35000*110% 38500*102% May June Budgeted Income statement Sales Revenue 38500 39270 Less: cost of Goods sold $19,173 $19,062 Gross profit $19,327 $20,208 Operating expenses Salaries & commission 6850 6927 3000+(38500*10%) Rent expenses $2,800 $2,800 Depreciation expenses $700 $700 Insurance expenses $400 10750 $400 10827 Operating Income O $8,577 $9,381 Incoem Tax expense (20%*O) $1,715 $1,876 Net Income If any doubt please comment

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