The Northeast Regional Division of Union Corp. has been requested to prepare a quarterly budgeted income statement for 2017. The regional manager expects that sales in the first quarter of 2017 will increase by 10% over the same quarter of the preceding year and will then increase by 5% for each succeeding quarter in 2017.The corporate head office has requested that the regional manager maintain an inventory in dollars equal to 25% of the next quarter's sales. Quarterly purchases average 55% of quarterly sales. Budgeted ending inventory on December 31 2016 is $176000. Quarterly salaries are $20000 plus 5% of sales. All salaries are classified as sales salaries. Other quarterly expenses are estimated to be as follows: Rent expense $ 24 , 000 Depreciation on office equipment $ 12 , 000 Utilities expense $ 3 , 600 Miscellaneous expenses 2 % of sales \begin{array}{lr} ext { Rent expense } & \$ 24,000 \ ext { Depreciation on office equipment } & \$ 12,000 \ ext { Utilities expense } & \$ 3,600 \ ext { Miscellaneous expenses } & 2 \% ext { of sales }\end{array} Rent expense Depreciation on office equipment Utilities expense Miscellaneous expenses $24 , 000 $12 , 000 $3 , 600 2% of sales The income statement for the first quarter of 2016 was as follows: InstructionsPrepare a budgeted quarterly income statement in tabular form for the first quarter of 2017. (Show computations.)

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The Northeast Regional Division of Union Corp. has been requested to prepare a quarterly budgeted income statement for 2017. The regional manager expects that sales in the first quarter of 2017 will increase by 10% over the same quarter of the preceding year and will then increase by 5% for each succeeding quarter in 2017.The corporate head office has requested that the regional manager maintain an inventory in dollars equal to 25% of the next quarter's sales. Quarterly purchases average 55% of quarterly sales. Budgeted ending inventory on December 31 2016 is $176000. Quarterly salaries are $20000 plus 5% of sales. All salaries are classified as sales salaries. Other quarterly expenses are estimated to be as follows:    Rent expense  $ 24 , 000  Depreciation on office equipment  $ 12 , 000  Utilities expense  $ 3 , 600  Miscellaneous expenses  2 %  of sales  \begin{array}{lr}	ext { Rent expense }  &  \$ 24,000 \	ext { Depreciation on office equipment }  &  \$ 12,000 \	ext { Utilities expense }  &  \$ 3,600 \	ext { Miscellaneous expenses }  &  2 \% 	ext { of sales }\end{array}  Rent expense   Depreciation on office equipment   Utilities expense   Miscellaneous expenses  ​ $24 , 000 $12 , 000 $3 , 600 2%  of sales  ​   The income statement for the first quarter of 2016 was as follows:   InstructionsPrepare a budgeted quarterly income statement in tabular form for the first quarter of 2017. (Show computations.)

Zybrea Knight · Accepted Answer

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