ACCT 001 Lecture Notes - Lecture 27: Earnings Before Interest And Taxes, Financial Statement, Income Statement
Document Summary
Get access
Related Documents
Related Questions
After carefully reviewing the companyâs 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