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Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat

Accounting

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1. Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process:
   
   
   
   Budgeted unit sales 660
   Selling price per unit $ 2,050
   Cost per unit $ 1,480
   Variable selling and administrative expenses (per unit) $ 85
   Fixed selling and administrative expenses (per year) $245,000
   Interest expense for the year $ 21,000
   
   
   Required:
   Prepare the company's budgeted income statement using an absorption income statement format shown below.
2. The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year:
   
   
   Ending Balances
   Cash ?
   Accounts receivable $ 9,700
   Supplies inventory $ 3,800
   Equipment $ 42,000
   Accumulated depreciation $ 17,000
   Accounts payable $ 3,400
   Common stock $ 5,000
   Retained earnings ?
   
   
   
   The beginning balance of retained earnings was $33,000, net income is budgeted to be $16,900, and dividends are budgeted to be $3,500.
   
   Required:
   Prepare the company's budgeted balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
3. Which of the following is NOT an objective of the budgeting process?
4. Which of the following represents the normal sequence in which the below budgets are prepared?
5. One disadvantage of a self-imposed budget is that budget estimates prepared by front-line managers are often less accurate and reliable than estimates prepared by top managers.
6. Planning involves gathering feedback to ensure that the plan is being properly executed or modified as circumstances change.
7. The cash budget is usually prepared after the budgeted income statement.
8. The cash budget is typically prepared before the direct materials budget.
9. The manufacturing overhead budget is typically prepared before the production budget.
10. The budget method that maintains a constant twelve-month planning horizon by adding a new month on the end as the current month is completed is called: