Barrieland Merchandising Firm is developing its budgets for 2019.The 2018 income statement is as follows:
Operating expenses (includes
Selling prices will increase by 10 percent and sales volume in units will decrease by 5 percent.The cost of goods sold as a percent of sales will increase to 62 percent.Other than amortization, all operating costs are variable.Required:
Prepare a budgeted income statement for 2019.

Question

Barrieland Merchandising Firm is developing its budgets for 2019.The 2018 income statement is as follows:
  Operating expenses (includes
  Selling prices will increase by 10 percent and sales volume in units will decrease by 5 percent.The cost of goods sold as a percent of sales will increase to 62 percent.Other than amortization, all operating costs are variable.Required:
Prepare a budgeted income statement for 2019.

Quizplus · Accepted Answer

The Answer of Barrieland Merchandising Firm is developing its budgets for 2019.The 2018 income statement is as follows:
  Operating expenses (includes
  Selling prices will increase by 10 percent and sales volume in units will decrease by 5 percent.The cost of goods sold as a percent of sales will increase to 62 percent.Other than amortization, all operating costs are variable.Required:
Prepare a budgeted income statement for 2019.

Barrieland Merchandising Firm Is Developing Its Budgets for 2019