Barrieland Merchandising Firm is developing its budgets for 2016.The 2015 income statement is as follows:

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 2016.

Question

Barrieland Merchandising Firm is developing its budgets for 2016.The 2015 income statement is as follows:
  
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 2016.

Quizplus · Accepted Answer

The Answer of Barrieland Merchandising Firm is developing its budgets for 2016.The 2015 income statement is as follows:
  
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 2016.

Barrieland Merchandising Firm Is Developing Its Budgets for 2016