Bolden Company prepared the following budgeted income statement for 2025​: 1​(Click the icon to view the budgeted income​ statement.) Read the requirements2. Requirement 1. Prepare a budgeted income...





Bolden

Company prepared the following budgeted income statement for
2025​:



1​(Click

the icon to view the budgeted income​ statement.)


Read the
requirements2.







Requirement 1. Prepare a budgeted income statement with columns for
1,300

​units,
1,400

​units, and
1,900

units sold.


















Bolden Company



Budgeted Income Statement



For the Year Ended December 31, 2025


































Unit sales


1,300


Sales Revenue






Cost of Goods Sold






Gross Profit






Selling and Administrative Expenses






Operating Income
































1,400
















































1,900


























Requirement 2. How might managers use this type of budgeted income​ statement?


The budgeted income statement prepared in Requirement 1 is a

(1)




budget. It allows
Bolden​'s

managers to plan for

(2)




sales​ level(s).

Requirement 3. How might spreadsheet software such as Excel assist in this type of​ analysis?


​Technology, such as Excel spreadhseet​ software, makes it more

(3)




to conduct

(4)




and prepare a​ company's

(5)




If managers have a better understanding of how changes in sales volume and costs are likely to affect

(6)



​,

they can

(7)




if key assumptions turn out to be wrong.



1: Data Table










































Bolden Company



Budgeted Income Statement



For the Year Ended December 31, 2025


Unit sales


1,400


Sales Revenue ($650 per unit)


$910,000


Cost of Goods Sold (55% of sales)


500,500


Gross Profit


409,500


Selling and Administrative Expenses (30% of sales)


273,000


Operating Income


$136,500







2: Requirements



















1.


Prepare a budgeted income statement with columns for
1,300

​units,
1,400

​units, and
1,900

units sold.


2.


How might managers use this type of budgeted income​ statement?


3.


How might spreadsheet software such as Excel assist in this type of​ analysis?









(1)



flexible



static







(2)



only a single



various







(3)



cost-effective



time-consuming







(4)



financial statement analysis



sensitivity or "what-if" analysis







(5)



annual report.



master budget.







(6)



net income



the annual report







(7)



maintain the same course of action



react quickly and make changes





Jun 09, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here