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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Question restatement: You’re asked to prepare a budgeted income statement for Toys 4 You for July 2022, using a set of given data (cash sales, credit sales, cost markup, wages, monthly costs, depreciation, drawings, creditor discounts, and customer discounts). The provided data also include a list of numbers to fill into various blanks of the budgeted income statement and a set of corresponding answer options. The goal is to evaluate whether each proposed value for every blank is correct, and to explain why each is right or wrong. Blank-by-blank analysis of the provided numbers: 1) Cash sales: 16500 - Reasoning: Cash sales are explicitly stated as 16,500. This is a direct figure from the prompt, so this value is correct for cash sales. No calculation needed beyond recording the given amount. - Why this is correct: It matches the stated cash sales in July. - Why other possibilities would be wrong: There are no alternate figures given for cash sales in the prompt, so any deviation would misstate the scenario. 2) Credit sales: 33000 - Reasoning: The prompt says credit sales are twice the amount of cash sales. With cash sales at 16,500, credit sales = 2 × 16,500 = 33,000. - Why this is correct: The relationship (credit sales = 2 × cash sales) is satisfied by 33,000. - Why other possibilities would be wrong: Any figure other than 33,000 would violate the stated 2:1 ratio between credit and cash sales. 3) Total sales: 49500 - Reasoning: Total sales = cash sales (16,500) + credit sales (33,000) = 49,500. - Why this is correct: It adds the two components of sales as given (cash + credit). - Why other possibilities would be wrong: Any other total would imply miscounting either cash or credit sales or both. 4) Cost of sales (COGS): 19800 - Reasoning: The toys are marked up by 150% of cost. If selling price = cost × 2.5 (since 150% markup on cost means price is cost + 150% of cost = 2.5 × cost). Total sales = 49,500. Therefore cost of sales = total sales ÷ 2.5 = 49,500 ÷ 2.5 = 19,800. - Why this is correct: The calculation follows the given markup rule and uses total sales to back out cost of sales. - Why other possibilities would be wrong: A different COGS would imply an inconsistent markup application or an incorrect allocation between cost and selling price. 5) Gross profit: 29700 - Reasoning: Gross profit = Total sales (49,500) − COGS (19,800) = 29,700. - Why this is correct: It reflects the sales less the cost of those goods sold, i.e., gross profit before operating expenses. - Why other possibilities would be wrong: Any other figure would misstate either total sales or COGS, or both, thus miscomputing gross profit. 6) N......Login to view full explanation