Questions

MCD1010 - T3 - 2024 Budgeted Income Statement

Multiple fill-in-the-blank

Question textPrepare a budgeted income statement for Toys 4 You for July 2022 using the following information: – Cash sales for July are expected to be $16,500 – Toys for 4 expect to Credit sales to be twice the amount of cash sales. – All toys are marked up by 150% of cost price. – Employees work 4.2 weeks during July and the weekly wage expense is $1,200. – Monthly costs include: Online advertising is $250 per month, Security and cleaning costs $280 per month, Insurance which costs $12,000 for the full year, Telephone and Data phone plans of $240 per month and Depreciation of shop fittings at 15% per annum (cost $10,000), straight-line method. – Owner drawings are $3,000 each month – Creditors are paid in the month after purchase gaining a 5% discount. Creditors balance at 1 July is $6,900. – To encourage early receipt from credit customers a 2% discount is offered on amounts paid within 20 days. It is expected customers with an accumulated balance of $15,000 will pay in credit terms during July 2022. (Do not include $ , or decimal places in your amounts)Toys 4 You Budgeted Income Statement for the month ending 31 July 2022 [table] Cash sales | Answer 1 Question 1 | Credit Sales | Answer 2 Question 1 | Answer 3 Question 1 Less Cost of Sales | | Answer 4 Question 1 Answer 5 Question 1 Gross ProfitNet Profit | | Answer 6 Question 1 Other Income | | Answer 7 Question 1 Advertising ExpenseDiscount ExpenseDiscount RevenueDepreciation ExpenseDrawingsInsurance ExpenseSecurity and CleaningTelephone ExpensesWages | | Answer 8 Question 1 Less Other Expenses (Select correct expenses in order per the drop down list) | | Answer 9 Question 1 Advertising ExpenseDiscount ExpenseDiscount RevenueDepreciation ExpenseDrawingsInsurance ExpenseSecurity and CleaningTelephone ExpensesWages | Answer 10 Question 1 | Answer 11 Question 1 Advertising ExpenseDiscount ExpenseDiscount RevenueDepreciation ExpenseDrawingsInsurance ExpenseSecurity and CleaningTelephone ExpensesWages | Answer 12 Question 1 | Answer 13 Question 1 Advertising ExpenseDiscount ExpenseDiscount RevenueDepreciation ExpenseDrawingsInsurance ExpenseSecurity and CleaningTelephone ExpensesWages | Answer 14 Question 1 | Answer 15 Question 1 Advertising ExpenseDiscount ExpenseDiscount RevenueDepreciation ExpenseDrawingsInsurance ExpenseSecurity and CleaningTelephone ExpensesWages | Answer 16 Question 1 | Answer 17 Question 1 Advertising ExpenseDiscount ExpenseDiscount RevenueDepreciation ExpenseDrawingsInsurance ExpenseSecurity and CleaningTelephone ExpensesWages | Answer 18 Question 1 | Answer 19 Question 1 AdvertisingExpenseDiscount ExpenseDiscount RevenueDepreciation ExpenseDrawingsInsurance ExpenseSecurity and CleaningTelephone ExpensesWages | Answer 20 Question 1 | Answer 21 Question 1 Advertising ExpenseDiscount ExpenseDiscount RevenueDepreciation ExpenseDrawingsInsurance ExpenseSecurity and CleaningTelephone ExpensesWages | Answer 22 Question 1 | Answer 23 Question 1 Answer 24 Question 1 Gross ProfitNet Profit | | Answer 25 Question 1 [/table]

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The task presents a filled-in-budget template for Toys 4 You for July 2022 and provides a list of numeric values in a specific order that correspond to various blanks in the budget table. Since the exact mapping of each numeric value to a particular line item in the table isn’t fully captured in the prompt’s text, I will (a) restate the question context and (b) analyze what each value would represent in the budget, with the most plausible mapping based on standard budget structure, and (c) note any assumptions or potential mismatches. - Restating the setup and the supplied numbers (in the order they appear in the provided answer array): 1) 16500 2) 33000 3) 49500 4) 19800 5) 29700 6) 345 7) 250 8) 300 9) 125 10) 1000 11) 280 12) 240 13) 5040 14) 7235 15) 22810 - Conceptual layout of a budgeted income statement for a retailer like Toys 4 You (to orient the reasoning): • Sales components: Cash sales and Credit sales; total sales is the sum of cash and credit sales. • Cost of Sales: Based on a markup of 150% of cost, Cost of Sales is derived from total sales or from cost-based calculation, depending on the shop’s costing method. • Gross Profit: Total Sales minus Cost of Sales. • Operating or other income and expenses: Advertising, Wages, Insurance, Security and Cleaning, Telephone, Drawings (not an expense but a drawings line in the equity section, but often shown in the owner’s equity/ POE section of a budgeting exercise), Depreciation, and any Discount-related effects if applicable. • Net Profit: Gross Profit plus/minus other income/expenses (excluding taxes if these aren’t part of the exercise). • The problem statement also includes working capital and payment terms (creditors with discounts, early-payment discounts for customers) which would affect cash payments and discounts but may not change the basic layout of the income statement itself, except for discount-related entries that reduce expense or increase revenue depending on the nature of the discount. - Analyzing each provided value in the context of the expected lines (with plausible mapping and reasoning): 1) 16500 (Cash sales) • This matches the problem’s given cash sales figure. It should be reported as Cas......Login to view full explanation

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