Exercise 14-2 Preparing sales budgets with different assumptions LeDetailed, whi

Question

Exercise 14-2 Preparing sales budgets with different assumptions LeDetailed, which has three regions, is preparing its sales budget. Each division expects a different growth rate because economic conditions vary in different regions of the country. The growth expectations per quarter are 4 percent for East Region, 2 percent for West Region, and 9 percent for Metro Region. DIVISION 1 T QUARTER 2D QUARTER 3RD QUARTER 4T QUARTER EAST REGION $100,000 WEST REGION $300,000 METRO REGION $500,000 Required Complete the sales budget by filling in the missing amounts. (Round figures to the nearest dollar.) a. b. Determine the amount of sales revenue that the company will report on its quarterly pro forma income statements.

Explanation / Answer

a Division 1st quarter 2nd quarter 3rd quarter 4th quarter East region 100000 104000 108160 112486 West region 300000 306000 312120 318362 Metro region 500000 545000 594050 647515 b 1st quarter 2nd quarter 3rd quarter 4th quarter Sales revenue 900000 955000 1014330 1078363

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