After carefully reviewing the company’s current financialsituation, management team has decided to review the...

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Accounting

After carefully reviewing the company’s current financialsituation, management team has decided to review the Proposedbudget for year 2 and you are requested to prepare revised budgetin accordance with organisational budgetary requirements for year 2& 3.
Use appropriate software to prepare the budget and then attachit to this assessment tool.
My retail Business
Budgeted Income Statement
For year ended 30 June 2017
Year 1
$
Revenue
Sales
458,580
less
TOTAL COST OF GOODS SOLD
334,764
GROSS PROFIT
123,816
less OPERATING EXPENSES
Accounting fees
560
Advertising
4,168
Bank charges
240
Depreciation
632
Electricity
762
Insurances
1,650
Interest paid
1,600
Legal fees
210
Rent
42,945
Stationery
428
Sundries
363
Superannuation
3,488
Telephone
936
Wages
38,750
Total operating expenses
96,732
NET PROFIT
27,084
Additional information:
Annual sales are expected to increase by 20% eachyear
COST OF GOODS SOLD are expected to increase by 5% eachyear
Advertising costs are expected to increase by $500 eachyear
Depreciation charges are the same each year
Annual rent is expected to increase by 5% eachyear
Superannuation is 9.5 % of wages each year
Wages are expected to increase by 6% eachyear
All other operating expenses are expected to increase by2% each year

Answer & Explanation Solved by verified expert

4.5 Ratings (695 Votes)

AMOUNT IN YEAR 1 YEAR 2 YEAR 3 REVENUE 458580 550296 6603552 LESS TOTAL COST OF GOODS SOLD 334764 351502 369077 GROSS PROFIT A 123816 1987938 2912779 LESS OPERATING EXPENSES ACCOUNTING FEES 560 5712 582624 INCREASE 2 EACH YEAR ADVERTISING 4168 4668 See Answer

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Transcribed Image Text

In: AccountingAfter carefully reviewing the company’s current financialsituation, management team has decided to review the Proposed...After carefully reviewing the company’s current financialsituation, management team has decided to review the Proposedbudget for year 2 and you are requested to prepare revised budgetin accordance with organisational budgetary requirements for year 2& 3.Use appropriate software to prepare the budget and then attachit to this assessment tool.My retail BusinessBudgeted Income StatementFor year ended 30 June 2017Year 1$RevenueSales458,580lessTOTAL COST OF GOODS SOLD334,764GROSS PROFIT123,816less OPERATING EXPENSESAccounting fees560Advertising4,168Bank charges240Depreciation632Electricity762Insurances1,650Interest paid1,600Legal fees210Rent42,945Stationery428Sundries363Superannuation3,488Telephone936Wages38,750Total operating expenses96,732NET PROFIT27,084Additional information:Annual sales are expected to increase by 20% eachyearCOST OF GOODS SOLD are expected to increase by 5% eachyearAdvertising costs are expected to increase by $500 eachyearDepreciation charges are the same each yearAnnual rent is expected to increase by 5% eachyearSuperannuation is 9.5 % of wages each yearWages are expected to increase by 6% eachyearAll other operating expenses are expected to increase by2% each year

My retail Business Budgeted Income Statement For year ended 30 June 2017
		Year 1
		$
Revenue
	Sales	458,580
*less*	*TOTAL COST OF GOODS SOLD*	*334,764*

	GROSS PROFIT	123,816
less OPERATING EXPENSES
	Accounting fees	560
	Advertising	4,168
	Bank charges	240
	Depreciation	632
	Electricity	762
	Insurances	1,650
	Interest paid	1,600
	Legal fees	210
	Rent	42,945
	Stationery	428
	Sundries	363
	Superannuation	3,488
	Telephone	936
	Wages	38,750
	*Total operating expenses*	*96,732*

	NET PROFIT	27,084