P22-22A Solutionjlm test the dateTest Your KnowledgeP22-22AReq. 1THUMBTACK OFFICE SUPPLYSales BudgetApril - May 2012April MaySales $ 40,000 $ 40,800 Req. 2THUMBTACK OFFICE SUPPLYInventory, Purchases, and Cost of Goods Sold BudgetApril - May 2012 April May Cost of goods sold (50% of rev) 20,000 20,400 Desired ending inventory 16,100 16,200 Desired inventory 36,100 36,600 Beginning inventory 16,000 16,100 Purchases $ 20,100 $ 20,500 Req. 3THUMBTACK OFFICE SUPPLYOperating Expenses BudgetApril - May 2012 April May Variable operating expenses: Commissions expense $ 2,000 $ 2,040 Fixed operating expenses: Salaries expense $ 7,000 $ 7,000 Rent expense 2,400 2,400 Depreciation expense 200 200 Insurance expense 100 100 Total fixed operating expenses 9,700 9,700 Total operating expenses $ 11,700 $ 11,740jlm test the dateReq. 4THUMBTACK OFFICE SUPPLYBudgeted Income StatementsMonths Ended April - May 2012 April May Sales revenue $ 40,000 $ 40,800 Cost of goods sold 20,000 20,400 Gross profit $ 20,000 $ 20,400 Variable operating expenses: Commission expense 2,000 2,040 Contribution margin 18,000 18,360 Fixed operating expenses: Salaries expense $ 7,000 $ 7,000 Rent expense 2,400 2,400 Depreciation expense 200 200 Insurance expense 100 100 Total fixed operating expenses $ 9,700 $ 9,700 Operating income $ 8,300 $ 8,660 Income tax expense 1,660 1,732 Net income $ 6,640 $
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