Barrieland Merchandising Firm is developing its budgets for 2012. The 2011 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 2012.

Question

Barrieland Merchandising Firm is developing its budgets for 2012. The 2011 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 2012.

Quizplus · Accepted Answer

The Answer of Barrieland Merchandising Firm is developing its budgets for 2012. The 2011 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 2012.

Barrieland Merchandising Firm Is Developing Its Budgets for 2012